Biofuels are necessary in helping to decarbonize the entire transport sector, from which around 20% of global emissions are generated. From bioethanol for cars to SAF for planes, the entire fuel market is being re-evaluated in a light of sustainability. IDTechEx's portfolio of Sustainability Research Reports and Subscriptions covers an entire range of initiatives which aim to significantly lower harmful emissions.
Bioethanol, biodiesel, and advanced biofuels
Although electric vehicles are one solution to decarbonizing road transport covered in IDTechEx's portfolio of Electric Vehicles Research Reports and Subscriptions, for the wider transportation landscape including aviation and shipping, electrification is not a feasible option. Low-carbon fuels, many of which can be drop-in fuels requiring minimal infrastructure changes, will therefore be a better-suited alternative. Bioethanol and biodiesel are also already used globally for cars in gasoline and diesel blends, to reduce the number of harmful emissions created from existing combustion engine vehicles. IDTechEx's report, "Sustainable Biofuels & E-Fuels Market 2026-2036: Technologies, Players, Forecasts", goes into further detail.
Bioethanol is mostly created from sugarcane, while biodiesel is traditionally made from vegetable oils, meaning both are created from natural feedstocks rather than coming from fossil fuels. However, one of the main issues with these feedstocks is the high land and water usage required in their production, which can come at the cost of deforestation and loss of biodiversity. Many traditional 1st generation biofuels are therefore also still responsible for a significant amount of greenhouse gas emissions. According to IDTechEx, government subsidies are now shifting more towards the production of advanced biofuels and e-fuels that generate even less emissions, and as a result, scalability of 1st generation biofuels is currently limited.
Advanced biofuels encompass 2nd, 3rd, and 4th generation biofuels. 2nd generation biofuels are created from lignocellulose or waste biomass and vegetable oils, as to recycle pre-used materials and to not demand excess land usage, while 3rd generation biofuels are expected to be made from algae, and 4th generation from genetically engineered microorganisms, algae, or even captured CO2. IDTechEx's report, "Industrial Biomanufacturing 2027-2037: Technologies, Markets, Players, Forecasts", report covers a whole range of biomanufacturing routes and applications including fuels.
SAF, HEFA, and alcohol-to-jet fuel
Sustainable aviation fuel (SAF) for planes is one market seeing significant growth and investment. SAF is created via the HEFA (hydrotreated esters and fatty acids) route, which sees oils and other waste materials treated with hydrogen to remove oxygen and collect hydrocarbons which are chemically the same as regular diesel or kerosene. Globally, there is reportedly a few million tonnes of HEFA- SAF capacity a year, with IDTechEx forecasting the global SAF market to reach US$50 billion in 2036.
Alcohol-to-jet is an alternative biofuel pathway, which sees ethanol or methanol being upgraded to hydrocarbon fuels, which can then be blended with regular jet fuel. This process sees ethanol and methanol undergoing dehydration, oligomerization, hydrogenation and isomerization, and finally fractional distillation. Details of these processes can be found in IDTechEx's "Sustainable Biofuels & E-Fuels Market" report.
Many companies have already begun commercial operation of alcohol-to-jet fuel which IDTechEx states will pave the way for even bigger SAF production capabilities. One of LanzaJet's facilities has been reported to produce 9 million gallons of SAF and 1 million gallons of renewable diesel a year, highlighting the great scope for further growth within the market and encouraging many other companies to follow suit.
For more information on the biofuel market and other sustainable initiatives within the transport sector, visit IDTechEx's portfolio of Sustainability Research Reports and Subscriptions for the latest developments.
