Energy supply: can biofuels save the day?

What are biofuels?

Biofuels are a type of fuel produced over a short time span from biomass. They can be produced from plants like crops, waste like residues, or algae. They are mostly used for transport. But they can also be used for heating and electricity.

Biofuels offer advantages that attract states. They participate in energy security. They are an alternative to oil imports. They allow to diversify the energy mix. Many states heavily rely on fossil fuels. This makes them vulnerable to crisis and market prices. Biofuels can allow to produce an energy source at home. For states with limited fossil fuel reserves but abundant land it can be attractive.

They also support domestic agriculture. Production can stimulate agricultural sectors. It can create new markets for crops and increase employment in rural areas. It also allows agricultural powers to gain influence.

Plus, biofuels are seen as renewable energy sources. They are said to emit fewer greenhouse gas emissions than hydrocarbons. This is mostly because the carbon emitted when burned in an engine has been captured from the atmosphere by the crops used in production.

By 2027, worldwide biofuel production is expected to supply 5,4% of the world’s fuel for transport. This includes one percent of aviation fuel.

Key players

The U.S. is a big corn ethanol producer. It also pushes to develop advanced biofuels and cellulosic ethanol. The goal is to reduce environmental footprint and tackle food security concerns. The EU puts the priority on biodiesel and sustainable biofuels. But its strict restrictions and climate concerns led to trade disputes. This was mostly the case with southeast Asia palm oil producing states. China and India’s policies are evolving on that matter too. They have growing energy demands and need to balance food vs fuel. They focus on advanced biofuels and non-food feedstocks. Brazil is one of the leaders in this industry.

Case study: Brazil

For over 5 decades, Brazil has been developing its biofuel sector. The initiative came after the 1973 oil crisis. At the time, Brazil imported 80% of its hydrocarbons. The state realized it needed an alternative. Today, Brazil is the second largest producer of ethanol and the third of biodiesel. It uses soybeans, sugarcane, and corn.

In Brazil, ethanol is mixed with oil to supply cars and trucks. Most engines are “flex”. This means they can receive both oil and ethanol. But the state still imports oil. Brazil sure is a big oil producer. It exports crude oil but needs to import refined oil due to a lack of refining capacities. While still being subject to markets volatility, Brazil’s biofuel strategy limited the surge in oil prices compared to other countries following the Ormuz crisis. To preserve its oil stocks as oil prices climb, the state is thinking about increasing the ethanol blending rate in gasoline to 32%.  

Challenges

One of the key challenges is to balance food and energy security. When crops are used for fuel, it can bring prices up. This can exacerbate food insecurity. Policies in rich countries can harm poorer importer states.

Plus, even though they are seen as a renewable, that does not mean they have no impact on the planet. They production requires land. Some studies showed that large emissions were linked with the land-use change to produce more biofuel feedstock. Deforestation is also a concern in areas where palm oil is used for biofuels. This leads to biodiversity loss. Ironically it can also lead to more carbon emissions.

This is why advanced biofuels are being developed to tackle these issues. The goal is to produce them with non-food biomass. That includes residues, forestry waste or dedicated energy crops. These feedstocks do not directly compete with food crops. There are also biofuels produced through microbial processes. Other are derived from algae. These technologies are still in development.

Biofuels presents advantages. But they also come with challenges. They complement the hydrocarbon market. But they will not replace it anytime soon. Plus, states must invest in and master the technologies above. This is crucial to be competitive in this sector. But also, to mitigate the environmental and food security impact.

Decoding geopolitics isn’t a job. It’s survival.

Joy