Oil Majors Investing 8 Times More in Biofuels than Hydrogen – T&E

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January 16, 2023

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(Biofuels Central) … Europe’s oil majors’ ‘big bet’ on hydrogen as the transport fuel for the future is not so big in reality, according to a new study on behalf of Transport & Environment (T&E)[1], which shows that investments in biofuels refining are eight times bigger. T&E accuses oil producers of not being serious about investing in genuinely clean fuels, but choosing the easy, unsustainable biofuels option.

Where Europe’s oil giants Shell, BP, Total, ENI and Repsol are investing in hydrogen, only part of this is truly ‘green’. Most of their investments are going towards decreasing the carbon intensity of their refinery operations, not for developing green transport fuels, the study shows.

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Of the refining sector’s €39 billion in planned investments for alternative fuels up until 2030, almost 75% will go towards increasing biofuels production. €2 to €3 billion will be invested in new advanced biofuels (HVO) plants alone, doubling production capacity to 10 megatonnes by 2030.

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According to the study, oil companies are investing around €6.5bn in so-called ‘low carbon’ blue hydrogen to clean up their production processes. This is double what they are spending on producing green hydrogen and e-fuels, which could be used to clean up aviation and shipping[2].

“Where oil producers are investing in hydrogen, most is going towards replacing dirty grey hydrogen operations with blue hydrogen, which still uses polluting fossil gas. READ MORE

Oil majors investing 8 times more in biofuels than hydrogen (Transport & Enviornment)

What is the future for European refining? (Tranport & Environment)

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