GlobalData: the rise of alternative fuels

The demand for biofuel is growing, with ramifications for feedstock availability and scaling. Both conventional and advanced feedstocks are experiencing surging demand, with the latter particularly sought-after by hard-to-abate industries under pressure to decarbonise.

While decarbonisation targets are driving biofuel demand, recent disruptions in the Middle East have reminded governments of the geopolitical sensitivity of oil supplies and the fragility of supply chains. Biofuels offer a reliable alternative to traditional petroleum products, supporting both decarbonisation strategies and supply security.

As a result, demand is on a firmly upward trajectory; production jumped from 1074.66 TWh in 2020 to 1424.52 TWh in 2024, led by the US.

Global biofuel production has grown sevenfold in the past 20 years

However, biofuel production faces a fundamental constraint: feedstock availability. Production is inherently limited by the available quantity of biomass, and detractors argue that scaling up conventional feedstock production means compromising food security, while advanced feedstocks face complicated collection logistics and growing international supply competition.

As biofuel demand rises and feedstock limitations loom, the industry is approaching a structural crunch.

Clarice Brambilla, energy transition analyst at Offshore Technology’s parent company, GlobalData, notes the early signals of feedstock scarcity.

“Current biofuel production is heavily dependent on vegetable oils, used cooking oil (UCO) and animal fats, which have enabled the rapid scale-up of renewable diesel (RD) and sustainable aviation fuel (SAF)?over the past decade. However, these resources are inherently limited, and increasing demand is already creating competition between fuel pathways,” she explained.

Read the article online at: https://www.hydrocarbonengineering.com/clean-fuels/08072026/globaldata-the-rise-of-alternative-fuels/