Biofuels (2025)
Summary
Biofuels, derived from the combustion or processing of biomass—a sustainable energy resource, represent a significant pathway toward facilitating the worldwide shift to renewable energy. This report focuses on examining the prospects for renewable fuels such as renewable diesel and sustainable aviation fuel (SAF), which are types of biofuels manufactured from inedible biomass sources. Government policies and international regulations are driving biofuel adoption across multiple sectors, but policy support remains uneven globally. Many countries have implemented mandates for blending biofuels with gasoline, diesel, and jet fuel to curb emissions. Even in shipping, the International Maritime Organization (IMO) is promoting biofuel use, while aviation sector is also gaining regulatory momentum. However, policy approaches vary widely around the world.
The oil and gas industry’s energy transition must incorporate transition fuels and low-carbon energy sources within their portfolios to reduce their carbon footprint. This includes the use of biofuels, either directly or through blending with petroleum fuels to help decarbonize the transportation sector. Although biofuels are predominantly used in transportation, they also have other applications, including heating and aviation. Unlike conventional fuels, biofuels are produced mostly from plants and animal sources, which can be replenished quickly.
Scope
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