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Posted on November 6, 2026 by  & 

Blending Sustainability and Decarbonizing Transportation with Biofuels

A car is seen refuelling with biofuel at a fuel station
Around 20% of global CO2 emissions come from transportation, highlighting a clear need for emerging solutions to help decarbonize the vast sector. New research into biofuels and e-fuels covered in IDTechEx's portfolio of Sustainability Research Reports and Subscriptions brings light to one solution that could help bring this figure down faster than any alternative, by requiring minimal changes to existing infrastructure.
 
1st generation biofuels
 
The decarbonization of the transport sector does not need to only involve the emergence of different vehicle types, such as battery electric or fuel cell electric vehicles. Regular combustion engine vehicles can still play a part in contributing to global sustainability efforts, by being refuelled with biofuels or e-fuels. This solution is not only applicable to cars, but aviation and shipping sectors too, which are much harder to feasibly electrify. As many bio or e-fuels can act as 'drop-in' fuels, there is no need for costly or time-consuming infrastructure changes.
 
Bioethanol and biodiesel in particular are already deployed globally to bring about replacements for gasoline and regular diesel, commonly used in blends alongside regular fuels, and are used every day in road vehicles such as cars, vans, and trucks. Bioethanol is traditionally produced from corn or sugarcane, while biodiesel comes from vegetable oils which undergo transesterification. The US, Europe, and Brazil are leading regions in the uptake of these fuels, according to IDTechEx, with hundreds of millions of tonnes already being produced globally.
 
 
Biodiesel also could have a large part to play in the shipping sector, which traditionally uses heavy fuel oils and marine diesel, both of which are harmful to the environment and derived from fossil fuels. IDTechEx's report, "Sustainable Biofuels & E-Fuels Market 2026-2036: Technologies, Players, Forecasts", covers an entire range of vehicle types, such as cars, ships, and airplanes, providing information on their fossil fuel incumbents, biofuel and e-fuel options, and competing alternatives, such as electrification routes.
 
Advanced biofuels - 2nd, 3rd, 4th generation
 
Conventional biofuels, despite their sustainable sounding origins, are still responsible for high land and water usage for feedstock production and deforestation, meaning there are still many limitations surrounding large-scale production. The feedstocks can also come at a high price, meaning biofuel manufacturers can be met with some uncertainty. Advanced biofuels are now seeing more policy support and increased government subsides as a result of ramped up decarbonization pressures, according to IDTechEx, and are produced slightly differently to take the sustainability edge. In the US, the renewable fuel standard mandates that only advanced biofuels are to be used.
 
 
2nd generation biofuels use lignocellulosic and waste biomass feedstocks in cellulosic ethanol, and waste vegetable oils or biomass in renewable diesel. IDTechEx's report provides in-depth information on 2nd generation biofuel production pathways, including many of the specific processes required. Algae are used in 3rd generation biofuels, also known as algal biofuels, while 4th generation technologies are expected to see genetically engineered microorganisms and algae, or even captured CO2, which would bring a distinct circularity to the industry.
 
HEFA (hydrotreated esters and fatty acids) is currently the main production route for producing renewable diesel and sustainable aviation fuel (SAF), as it is considered the lowest-cost approach to biofuel production. However, limited feedstock availabilities expected from 2030 may require manufacturers to develop other biofuel pathways. Alcohol-to-jet is one alternative process to producing SAF, which sees ethanol or methanol upgraded into hydrocarbon fuels which can be blended with traditional jet fuel. IDTechEx's other report, "Sustainable Future Aviation 2025-2045: Trends, Technologies, Forecasts", provides additional detail about the SAF market and the decarbonization of the aviation sector.
 
For more information, visit IDTechEx's portfolio of Sustainability Research Reports and Subscriptions for the latest research into biofuels, key players, forecasts, and developments.
 

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Posted on: November 6, 2026

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