A Survey of Renewable Fuels and Carbon Capture / Storage / Utilization Activity in Taiwan

December 03, 2025

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by Solomon Tekle Rikitu* (Advanced Biofuels USA) Taiwan’s 2050 net-zero target has catalyzed rapid developments in renewable fuels and carbon management technologies. This survey synthesizes the most recent landscape of renewable fuel pathways, carbon capture/storage/utilization (CCS/CCU) initiatives, life-cycle performance, markets and regulations, and policy/business dynamics including the human-factor issues that enable or constrain deployment. The review demonstrates that Taiwan’s progress is significant but constrained by feedstock scarcity, infrastructural gaps, and public acceptance challenges. Opportunities lie in integrated value chains, cross-sector partnerships, and alignment of regulatory, economic, and social systems.

1. Introduction

Taiwan has articulated a legally binding commitment to carbon neutrality by 2050, framed within the Climate Change Response Act and sectoral decarbonization roadmaps. Renewable fuels including biogas/biomethane, biofuels, sustainable aviation fuel (SAF), hydrogen, and emerging e-fuels form a key strategic pillar, complemented by emerging CCS/CCU technologies in industrial hubs and geological testbeds [1–3]. Growing external pressures such as the European Union Carbon Border Adjustment Mechanism (EU CBAM), global green-supply chain requirements, and airline decarbonization mandates further increase the urgency of domestic low-carbon fuel development [4]. This article provides an integrated survey of renewable fuels and CCS/CCU activity in Taiwan, addressing conversion technologies, feedstocks, energy systems, life cycle analysis (LCA) implications, markets, and policy dynamics.

2. Renewable Fuels in Taiwan: Technologies, Feedstocks, Energy Sources and Value Chains

2.1 Biogas and Biomethane (Renewable Natural Gas)

Biogas from livestock manure, food waste, agricultural residues, and sewage sludge represents Taiwan’s most mature renewable fuel sector [5].

Government-supported anaerobic digestion (AD) projects operate across rural livestock regions, while central and municipal governments promote co-digestion of manure and organic waste to enhance plant efficiency [6]. Upgrading technologies (pressure-swing adsorption, water scrubbing, membrane separation) support biomethane purity compatible with grid injection and transport uses [7].

Value Chain Challenges: Key bottlenecks include fragmented feedstock collection, uneven farm sizes, digestate disposal regulations, and methane-leak mitigation [8]. Integrating district-level digestion hubs with municipal waste-management systems is a priority.

2.2 Biodiesel and used cooking oil (UCO) Biofuels

Taiwan historically relied on used cooking oil (UCO) as a primary feedstock for fatty acid methyl ester (FAME) biodiesel production [9]. Although a domestic UCO scandal in 2014 triggered stricter traceability regulations, UCO remains the most reliable local lipid resource for renewable fuels [10]. The scale, however, is limited; analyses show that local UCO supply is insufficient for significant SAF production without imports [11].

2.3 Sustainable Aviation Fuel (SAF)

Taiwan’s aviation sector anchored by China Airlines and EVA Air—faces International Civil Aviation Organization (ICAO) decarbonization requirements. Taiwan is exploring HEFA (Hydro processed Esters and Fatty Acids), Alcohol-to-Jet (ATJ), and Fischer–Tropsch (FT) pathways, but domestic lipid scarcity and high production costs constrain early deployment [12]. Government initiatives support feasibility studies, airport-side blending logistics, and international procurement strategies for imported SAF, which will likely dominate supply in the near term [13].

2.4 Hydrogen and Power-to-X Fuels

Taiwan envisions hydrogen contributing to future power-generation capacity in long-term energy planning models, but official documents do not specify a fixed percentage share.[14]. The government, Industrial Technology Research Institute (ITRI), and state-owned enterprises (SOEs) are advancing:

Green hydrogen via proton exchange membrane (PEM) and alkaline electrolysis powered by offshore wind and solar [15].
Blue hydrogen tied to CCUS feasibility at industrial clusters [16].
Methane pyrolysis for solid-carbon coproducts and reduced emissions pathways [17].

Hydrogen forms the basis for Power-to-Liquids (PtL) e-fuels, which may support aviation and shipping.

2.5 Carbon Capture, Storage, and Utilization (CCS/CCU)

Taiwan has initiated the first comprehensive CCS program, including:

Point-source CO₂ capture pilots at refineries, waste-to-energy plants, and gas-fired power units [18].
Geological storage assessment at the Tieh-Chen Mountain Test Site, conducting seismic surveys, injectivity analyses, and risk evaluations [19].
CO₂ utilization in chemicals (methanol, formic acid), mineral carbonation using industrial by-products, and algae-based systems [20].

Strategic clusters linking capture sites, hydrogen production, and CO₂ sinks—are under evaluation.

3. Life-Cycle Sustainability and Carbon-Intensity Accounting

3.1 Importance of System Boundaries

LCAs in Taiwan must account for feedstock sourcing, logistics, electricity emission factors, plant operations, and downstream use. Because Taiwan’s grid remains partially fossil-dependent, the carbon intensity of electricity significantly shapes hydrogen and e-fuel LCAs [21].

3.2 Biogas and Biomethane LCA

Biogas systems often deliver substantial net-negative emissions when capturing methane from unmanaged manure or landfill-diverted organic waste [22]. However, actual climate benefit depends on:

Methane-slip control
Digestate treatment and nutrient recycling
Efficient plant operations

3.3 Biofuels and SAF LCA

HEFA and ATJ SAF show strong LCA performance, but limited feedstock availability means that upstream transport emissions can reduce their advantages [11].

3.4 Hydrogen and PtL LCA

Electrolytic hydrogen is only low-carbon when powered by renewables electricity and grid mix. Therefore, it is important to co-locate electrolyzes with offshore wind or use long-term corporate PPAs to ensure genuinely low-carbon hydrogen production [15].

3.5 CCS LCA Considerations

CCS effectiveness depends on:

Capture efficiency
Compression and transport energy use
Storage permanence and leakage risks
Monitoring, reporting, verification (MRV) protocols

Taiwan’s testbed is designed to build robust MRV frameworks for future industrial deployment [19].

4. Markets, Market Forces, and Regulations

4.1 Domestic Market Drivers

Major forces shaping the renewable-fuel landscape include:

Semiconductor industry defossilization and supply-chain requirements
EU CBAM pressures
Airline and maritime defossilization commitments
State owned companies (SOE) climate obligations (Taipower, CPC)
Increasing investor and consumer preference for low-carbon products [4,13].

4.2 Regulatory Environment

The Climate Change Response Act strengthens government authority to impose:

Emission-intensity targets
Carbon-pricing mechanisms
Mandatory reporting
Sectoral decarbonization guidelines [1]

The government is exploring:

Cap-and-trade
Carbon-fee systems
Renewable fuel crediting mechanisms
SAF blending roadmaps
CCS permitting and safety regulations

Biogas and hydrogen projects benefit from grants, subsidies, Feed-In Tariff (FIT), demonstration funds, and tax incentives [5].

4.3 Barriers and Market Weaknesses

Key constraints include:

Limited domestic feedstocks (UCO, biomass residues)
High cost of hydrogen and SAF
Absence of carbon-intensity certification frameworks
Limited CO₂ transport infrastructure
Slow permitting and community resistance in rural or geological storage areas

5. Policy, Business, and Human-Factor Dynamics

5.1 Policy Priorities

Taiwan’s policy strategy increasingly integrates:

Waste management & renewable energy planning
Hydrogen and CCUS industrial clusters
Public-private partnerships for demonstration plants
Incentives for domestic equipment manufacturing

Alignment of energy, waste, industrial, and climate policies is essential for long-term success [3].

5.2 Business and Investment Conditions

SOEs (e.g., CPC, Taipower) are pivotal in capital-intensive projects. However, private-sector engagement is accelerating in hydrogen, biogas, and CCU chemicals. Venture investment remains small, and technology-risk perceptions slow adoption [16].

5.3 The Human Factor

Human-centered challenges include:

Public acceptance of geological storage, waste-to-energy facilities, and biogas digesters
Trust deficits caused by past waste-oil scandals
Need for specialized workforce in electrochemistry, process engineering, and MRV
Importance of transparent communication about CCS safety and community benefits [19]

Without addressing social governance and trust, technical solutions risk facing opposition.

6. Conclusions

Taiwan’s renewable-fuel and CCS/CCU landscape is in transition from pilot to early commercial development. Strong government commitment, corporate decarbonization pressure, and technological capability place the country in a promising position. However, challenges including feedstock scarcity, high technology costs, insufficient infrastructure, and social acceptance risks must be strategically managed.
Integrated planning, robust carbon-intensity accounting frameworks, and human-centered governance are essential to accelerate Taiwan’s progress toward net-zero fuel systems.

7. References

[1] Taiwan Ministry of Environment, Climate Change Response Act, Government of Taiwan, 2023. https://www.roc-taiwan.org/sa_en/post/3080.html
[2] National Development Council (NDC), Taiwan’s Pathway to Net-Zero Emissions in 2050, 2022. https://www.mdpi.com/2071-1050/15/6/5587
[3] Executive Yuan, Net Zero Roadmap Action Plans, 2023. https://english.ey.gov.tw/News3/9E5540D592A5FECD/5cf73389-61f9-43dd-80b3-62926546d710
[4] European Commission, Carbon Border Adjustment Mechanism (CBAM) Regulation, 2023. https://kpmg.com/xx/en/our-insights/esg/carbon-border-adjustment-mechanism-cbam.html
[5] Ministry of Economic Affairs (MOEA), Biogas Promotion Program, 2025. https://www.wra.gov.tw/wracben/News_Content.aspx?n=42481&s=214324
[6] Council of Agriculture (COA), Livestock Biogas Development Framework, 2024. https://www.sciencedirect.com/science/article/pii/S0959652624003056
[7PPA] Biomethane Upgrading Technology Report, 2022. https://ideas.repec.org/a/eee/renene/v200y2022icp777-787.html
[8] Environmental Protection Administration, Digestate Management Standards, 2024. https://www.sciencedirect.com/science/article/pii/S1878818124003293
[9] Biodiesel Supply and Quality Reports, 2018–2024. https://www.sciencedirect.com/science/article/pii/S2772656824000769
[10] Chang, W., “Waste Oil Traceability Reform in Taiwan,” Journal of Food Safety, 2014. https://en.mofa.gov.tw/News_Content.aspx?n=1328&s=33669
[11] Optimal production of cellulosic ethanol from Taiwan's agricultural waste, 2015. https://www.sciencedirect.com/science/article/pii/S0360544215007537
[12] China Airlines Sustainability Report, 2023. https://www.ceair.com/global/en_static/AboutChinaEasternAirlines/intoEasternAirlines/InvestorRelations/socialResponsibility/202404/P020240426331536132989.pdf
[13] EVA Air ESG Report, 2023. https://www.ceair.com/global/en_static/AboutChinaEasternAirlines/intoEasternAirlines/InvestorRelations/socialResponsibility/202404/P020240426331536132989.pdf
[14] NDC, Hydrogen Energy Development Strategy, 2023. https://www.iea.org/policies/16977-hydrogen-industry-development-plan-2021-2035
[15] Green Hydrogen Demonstration Project Review, 2023. https://ndcpartnership.org/knowledge-portal/climate-toolbox/green-hydrogen-guide-policy-making
[16] Corporation, CCUS and Hydrogen Strategy, 2023.https://rsprc.ntu.edu.tw/web/research/research_in.jsp?lang=en&rp_id=RP1729150211581
[17] Methane pyrolysis for hydrogen production: navigating the path to a net zero future. https://pubs.rsc.org/en/content/articlelanding/2025/ee/d4ee06191h
[18] Taipower, Carbon Capture Pilot Program Overview, 2023. https://www.taipower.com.tw/mag/Sustainability_en/2023sustainability.pdf
[19] Ministry of Economic Affairs, Tieh-Chen Mountain Geological Storage Testbed Reports, 2021–2023. https://rsprc.ntu.edu.tw/web/research/research_in.jsp?lang=en&rp_id=RP1729150211581
[20] CO₂ Utilization Research Portfolio, 2023. https://tuca.tier.org.tw/ccusen/xmdoc/cont?xsmsid=0N062494609016698195&sid=0O194338524882485281
[21] Taiwan Power Company, Electricity Emission Factors and Projections, 2025. https://data.gov.tw/en/datasets/30151
[22] Methane Emission Reduction Pathways, 2022. https://www.sciencedirect.com/science/article/pii/S2666498424000127

*Solomon Tekle Rikitu works on life cycle analysis for CO2 capture and utilization at the National Chung Hsing University in Taiwan, focusing on phtotothermal and catalytic systems for net-zero solutions. His interests include: 1. CO₂ Capture, Utilization, and Conversion (CO₂RR): Advancing CO₂ mitigation and valorization through integrated environmental and economic analyses. 2. Life Cycle Assessment (LCA): Evaluating the sustainability and environmental performance of emerging CO₂RR systems. 3. Techno-Economic Analysis (TEA): Assessing economic feasibility, including CAPEX/OPEX, carbon-price sensitivity, and CO₂ feedstock considerations. 4. Circular-Economy Solutions: Developing waste-to-energy and material-circularity strategies to improve resource efficiency and support the SDGs.

Tags

water waste management used cooking oil (UCO) Taiwan Sustainability sludge sewage Renewable Natural Gas (RNG) regulations pyrolysis proton exchange membrane (PEM) power-to-x/gas/liquid MSW (Municipal Solid Waste) methane/biomethane markets/sales market forces manure life cycle analysis (LCA) Jetfuel (Sustainable Aviation Fuel (SAF)) Hydrogen/Renewable Hydrogen HEFA (Hydro-processed esters and fatty acids) GHG (Greenhouse Gas Emissions) Intensity food waste Fischer-Tropsch/FT FAME (Fatty Acid Methyl Ester) European Union (EU) environmental policy electrolysis electrofuels (e-fuels) defossilization co-products carbon/CO2 sequestration Carbon tax border adjustments carbon price Carbon Intensity (CI)/Carbon Footprint Carbon Dioxide (CO2) carbon capture and utilization (CCU) carbon capture and storage (CCS) BioRefineries/Renewable Fuel Production Biogas biodiesel BioChemicals/Renewable Chemicals Aviation Fuel/Sustainable Aviation Fuel (SAF) anaerobic digester/digestion anaerobic digestate algae alcohol-to-jet (ATJ)/ethanol-to-jet (ETJ) Agricultural waste/residue

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