by Pharoah Le Feuvre (International Energy Agency) Transport biofuel production expanded 7% year-on-year in 2018, and 3% annual production growth is expected over the next five years. This falls short of the sustained 10% output growth per year needed until 2030 to align with the Sustainable Development Scenario (SDS). Stronger policy support and innovation to reduce costs are required to scale up both advanced biofuel consumption and the adoption of biofuels in aviation and marine transport, as envisaged in the SDS. As only sustainable biofuels have a place in the SDS, more widespread sustainability governance must complement higher biofuel output.
...
Biofuel production in the United States and EU member states is not on track to meet SDS demand in 2030. Most biofuel consumption in these countries occurs at low percentage blend levels with fossil fuels. Lower US and EU road transport fuel demand as a result of improved vehicle efficiency therefore means that, without higher biofuel blend rates or greater use of drop-in biofuels, consumption of biofuels is set to fall.
Although biofuel production in Brazil and India is expected to expand, growth must accelerate further yet to achieve the SDS volume for 2030.
...
China and ASEAN countries also exhibit production growth, which if sustained would deliver the 2030 biofuel volumes required by the SDS. China plans to roll out blends of 10% ethanol in gasoline nationwide; expansion from 11 to 15 provinces is under way and significant new ethanol capacity is in development.
Given rapidly increasing transport fuel demand, policy support for transport biofuels in ASEAN countries is robust because domestic biofuel consumption is a means to raise energy security while ensuring demand for strategically important agricultural commodities.
In Mexico and South Africa transport biofuel industries are at an early stage. Therefore, market development and technology leapfrogging are needed to get on track with the SDS.
Biofuels in aviation and marine transport
In the SDS, low-carbon fuels meet 7% of international shipping and 10% of aviation fuel demand in 2030. However, current biofuel consumption is minimal in both these subsectors.
Some progress has been made in biofuels for aviation. Flights using biofuel blends have surpassed 150 000; continuous biofuel supply is available at five airports; and policy support was enhanced in the United States and Europe in 2018.
Still, aviation biofuel production of about 15 million litres in 2018 accounted for less than 0.01% of aviation fuel demand. This means that very significant market development is needed to deliver the aviation biofuel production required to be on the SDS trajectory in 2030.
In the marine sector, the use of biofuels is under consideration in certain cases, although the currently higher costs for biofuels means uptake remains low.
Scaling up advanced biofuels is essential
Advanced biofuels from non-food crop feedstocks need to command a more substantial share of biofuel consumption in the SDS. This is because they mitigate land use change concerns and generally offer higher lifecycle GHG emissions reductions than conventional biofuels.
Technologies to produce biodiesel and hydrotreated vegetable oil (HVO) from waste oil and animal fat feedstocks are technically mature and provided 6-8% of all biofuel output in 2018. However, production of novel advanced biofuels from other technologies is still modest, with progress needed to improve technology readiness. These technologies are important nevertheless as they can utilise feedstocks with high availability and limited other uses (e.g. agricultural residues and municipal solid waste).
The investment landscape for advanced biofuels is challenging, however, with only a small share of announced projects moving into construction. Nevertheless, policy interest remains strong, notably in Europe, India and the United States, and the Biofuture Platform, a 20-country collaboration, advocates an increase in low-carbon biofuel consumption.
...
Ensuring sustainability
Since only sustainable biofuels have a place in the SDS, sustainability governance is essential to ensure that scaling up biofuel consumption delivers tangible social, economic and environmental benefits, including lifecycle GHG emissions reductions.
Policy makers must establish frameworks to ensure only sustainable biofuels receive policy support. Adherence with sustainability criteria can be demonstrated by third-party certification of biofuel supply chains.
The European Union, the United States and Brazil have established frameworks to ensure biofuel sustainability, but there is a need for other countries to ensure that rigorous sustainability governance is linked to biofuel policy support.
Commercialising advanced biofuels
Novel advanced biofuel investment and production costs are currently high. It is recommended that supportive policies be introduced to facilitate the technology learning and production scale-up necessary to reduce costs.
Relevant policies include advanced biofuel quotas and financial de-risking measures e.g. loan guarantees from development banks. These would be particularly effective in Latin America, China and ASEAN countries, as they possess significant feedstock resources.
Countries and regions should consider policies that specify reductions in fuel life-cycle carbon intensity (such as California’s Low Carbon Fuel Standard), that are effective in boosting demand for biodiesel and HVO from waste oil, fat and grease feedstocks, as well as biomethane. They could also support deployment of novel advanced biofuels once production costs fall.
Scaling up aviation and marine biofuels
Biofuel production for airplanes and ships is technically viable, but the availability of suitable fuels is low. In addition, uptake is constrained by costs that are higher than fossil fuels at current oil prices, especially since policy support is less widespread than for road transport.
To scale up biofuel consumption, market and policy frameworks must be devised that reflect the international nature of these sectors. This task falls within the remit of the International Civil Aviation Organisation and the International Maritime Organisation.
Domestic aviation and navigation fall under the jurisdiction of national governments, however, and policy measures that close cost premiums with fossil fuels (e.g. consumption subsidies or carbon pricing) can be employed to increase the economic viability of biofuel use.
Moving beyond low biofuel blend shares
Most biofuels are currently consumed through blending at low percentages (typically less than 10% by volume or energy) with fossil fuels.
Policy makers should consider how to encourage the use of flexible-fuel vehicles and drop-in biofuels to replace higher shares of gasoline or diesel with sustainable biofuels.
Flexible-fuel vehicles are adapted to high biofuel blend levels or unblended biofuel use. Drop-in biofuels can be used unblended or at high blend shares without modifications to engines, maintenance regimes or fuel supply infrastructure. READ MORE
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