Everything You Need to Know About Biofuels

What Are Biofuels? 

Biofuels are a class of renewable fuels derived from organic material known as biomass. These organic materials for biofuels include agricultural waste, corn, algae, and trees. Biomass is turned into fuel which then produces bioenergy. 

This sort of energy uses what has been stored in biomass through natural processes like photosynthesis in plants. The chemical energy produced through such processes can be conserved and utilized for human energy purposes.  

Currently, about 10% of the world’s energy needs are met from these sources. This number is likely to grow as countries continue to invest in and adopt green energy policies. 

What Are Primary and Secondary Biofuels? 

Biofuels include two types: primary or secondary.  

• Primary biofuels use a main resource directly in some type of unprocessed form. For example, wood pellets can heat a stove used to heat a home. 
• Secondary biofuels convert the original biomass into a different form—usually liquid biofuels like ethanol or biogas. In this form, they can be used for vehicle fuel or other industrial purposes. 

Why Do We Need Biofuel If We Have Other Renewable Energy? 

We already utilize several other types of alternative energy such as wind, solar, and hydroelectric. However, these resources can’t replace the feedstocks we need for products like jet fuel, gas, and petroleum diesel fuel.  

This is where biofuels come into the equation. They serve as another type of alternative energy source to create fuels that other renewables cannot.  

What Are the Types of Biofuels? 

1. Wood

Wood is the most direct and simple organic material used to create fuel. It is both a biomass and a biofuel used in the production of other alternative fuels. It can be burned in many forms:  

• Campfire Wood 
• Charcoal 
• Pellets 
• Sawdust 

This makes wood a common and highly adopted type of fuel throughout the world.  

Wood serves as an essential component in broader-scale energy use as well. Pulp and paper, forestry, and other wood processing industries are often left with by-products and waste. Otherwise known as woody biomass, these leftovers can then be used in secondary renewable fuel production. 

2. Ethanol

Ethanol is a liquid biofuel produced by fermenting plant and animal biomass. It is an alcohol derived from high-carbon elements of feedstocks, such as cellulose and sugar. It is often made from a combination of plant and animal biomass.

Common sources of ethanol biofuels include fibrous, sweeter plants such as corn, sorghum, beets, and sugarcane. These materials are broken down and combined with yeast to ferment. Denaturants are also added to stop human consumption.  

Ethanol is mostly clean in terms of production and combustion, making it an attractive option for reducing carbon emissions. Global biofuel mandates require many countries to move toward higher adoption. For transportation needs like jet fuel, ethanol can help countries reach compliance levels. 

3. Biodiesel 

Biodiesel is a liquid biofuel produced mainly from vegetable oils and animal fats to replace petroleum diesel fuel. Oils are combined with alcohol and processed into renewable diesel fuel. These higher energy sources allow for improved energy output within transportation. 

Biodiesel offers several advantages. It can be made from oils that would otherwise become waste such as used cooking oil and yellow grease. Animal byproducts from meat processing can also be salvaged for a stable, renewable diesel production pathway. 

The conversion process from feedstocks into fuels also produces a coproduct: glycerin. Glycerin made from this source reduces the need for production elsewhere. This conserves even more resources and improves biodiesel’s carbon footprint. 

4. Methanol 

Methanol is another liquid fuel used in specialized areas such as auto racing. It is a type of alcohol fuel like ethanol. Methanol was mostly used as an early alternative fuel in the 1990s. Its higher resource demand and production costs make it mostly obsolete today. 

5. Butanol

Butanol, another alcohol fuel, contains more energy per ounce than either ethanol or methanol. It is also closer in chemical structure to gasoline than other alternative energy. As a liquid biofuel, butanol is derived from many of the same ingredients as ethanol. However, it has higher production costs leading many producers to make ethanol instead. Ongoing research and development may position butanol as a top choice among alternative fuels in the future. 

6. Biogas 

Biogas serves as an alternative to natural gas and is produced by breaking down methane. As methane emissions significantly contribute to climate change, converting it into biogas can lower greenhouse gases, converting them into a critical fuel source. 

About 40% of methane emissions come from the world’s cow population. Agriculture already uses biogas to conserve methane. It is also gaining popularity in consumer-level applications, such as gas cylinders. 

What Are Biofuels Made From? 

One frequent question beginners ask relates to composition: what are biofuels made from? Alternative biofuels are produced using a wide range of feedstocks derived from organic, renewable sources. Examples of feedstocks for biofuels include:  

• Used cooking oils 
• Crude palm oil 
• Soybean oil 
• Other vegetable oils and Animal fats
• Corn oil
• Yellow and white grease
• Spent bleaching earth oils
• Rapeseed oil

Other sources include woody biomass, various non-food crops (or waste from food crops like sugar cane), organic waste, and manure.

Unlike fossil fuels, renewable feedstocks can be continually produced. This makes them a sustainable alternative to an otherwise limited stock of fuel sources. 

Ongoing work in this field will help find potential new feedstocks for liquid biofuel production. As we improve technology and efficiency, we will likely see even more available options. 

Read More: Feedstock Fundamentals: What is Biofuel Made From?

Are Biofuels Renewable and Sustainable? 

Yes, these fuels are considered renewable energy sources. They are derived from organic matter, such as plants or animal waste. The required organic matter can be grown and replenished over time, making them a suitable resource for sustainable fuel. 

In some cases, feedstocks come from material that would otherwise be thrown away. One example is used cooking oil (UCO). Restaurants must frequently dispose of this oil. Using UCOs as a feedstock stops them from going straight to a landfill. It conserves a large amount of energy that would have become waste. 

How Much Does Biofuel Cost? 

The cost of these fuels varies depending on several factors, including: 

• The type of fuel produced 
• The feedstocks needed to make it
• Current global inventories
• Location of production
• Local or regional supply and demand
• Other economic factors

Initially, the development and infrastructure costs led to higher prices of biofuel produced. However, as clean energy investments continue to increase, production costs are expected to decrease. Eventually, bioenergy will become more economically competitive with traditional fuels. 

Where are Biofuels Used?

Liquid biofuels are used to replace liquid fossil fuels in a multitude of applications. From vehicles to industrial equipment, the range for biofuel-compatible operations continues to see impressive growth.

A few standout areas of biofuel adoption include the following:

Aviation

Sustainable aviation fuel (SAF) has become one of the fastest rising areas of biofuel development and adoption. Companies continue to innovate in how they produce and refine a drop-in renewable alternative to traditional fossil fuel for airlines.

Many airports have offered incentives for early SAF adoption. As many countries mandate SAF usage, we will continue to see aggressive growth in this particular section.

Marine Shipping

Marine biofuels and bio-bunkering are also seeing an impressive rise in adoption and usage across the world.Areas like Rotterdam, Singapore, Panama, and several European ports have equipped their operations with bio-bunkering.

Regulatory pressure, corporate commitments, and drop-in fuel technology have all fueled growth in this industry. Expect to see frequent updates on bio-bunkering availability as even more ports begin integrating its use in their fueling operations.

What is the Difference Between Sustainable Fuels and Renewable Fuels?

While renewable fuels are defined primarily by their source, sustainable fuels are judged by their overall environmental and ethical footprint. This distinction has important implications for climate policy, investment strategy, and the long-term viability of global energy systems.

Renewable fuels are derived from naturally replenishing sources:

• Crops (Corn or Sugarcane)
• Plant Oils
• Animal Fats

In the context of bioenergy, these often take the form of biofuels, which are celebrated for their potential to reduce reliance on petroleum.

However, the label “renewable” doesn’t guarantee that a fuel is environmentally responsible. For example, growing corn for ethanol may involve significant land and water use, along with fertilizer application that contributes to pollution and biodiversity loss.

Accordingly, a fuel can be renewable without being truly sustainable.

In contrast, sustainable fuels are assessed on a broader set of criteria that goes beyond renewability. These include all the following:

• Lifecycle Greenhouse Gas Emissions
• Impact on Land Use and Biodiversity
• Competition with Food Systems and Crops
• Utilizing Waste or Other Marginal Resources

A sustainable fuel might be produced from agricultural residues, used cooking oil, municipal waste, or even captured atmospheric carbon. All of these are sources that don’t strain food supplies or require fresh land and water inputs.

So, while sustainable fuels are often renewable, not all renewable fuels meet the standards of sustainability. Understanding this difference is crucial when evaluating fuel options that not only reduce emissions but also protect ecosystems and promote long-term environmental resilience.

What Are the Advantages of Biofuels? 

1. Renewable and Cleaner: Bioenergy derived from renewable and sustainable fuel offers a cleaner and more eco-friendly alternative to traditional fuels. While fossil fuels release substantial amounts of carbon emissions, renewable ones emit significantly less carbon into the atmosphere. Derived from sources like waste from food crops and non-food crops, trees, and animal byproducts, bioenergy plays a crucial role in addressing the climate crisis and slowing global climate change.
2. Energy Independence: Countries can reduce their reliance on other nations for fossil fuel supplies by producing their own alternative fuels. Unlike traditional fuels that are geographically limited, these resources are more accessible and available to countries without fossil fuel reserves. This independence provides more control over factors such as pricing, leading to increased stability and reduced regional restrictions.
3. Economic Benefits: Renewable fuels contribute to job creation throughout the entire production process, from growing feedstocks to refining fuels. The development of energy facilities leads to an increase in quality jobs. And decreased reliance on traditional fuels enhances economic stability by mitigating the impact of fluctuating fuel prices. This stability helps businesses become and remain more resilient against market disruptions. 
4. Waste Reduction: Current and future developments are focusing on methods to reduce garbage destined for landfill. For instance, the meat industry accounts for around 15% of total carbon emissions. However, those emissions can be offset by using the leftovers and byproducts from meat processing to help create liquid biofuels. With meat byproducts accounting for close to two billion gallons of biodiesel per year, that’s a major amount of carbon savings compared to petroleum diesel fuel. 

Emerging technology is also being developed to help solve issues with contaminated recyclable materials. Take packaging or materials using both paper and plastic, for example. The plastic would contaminate the paper and prevent it from getting recycled. But developing techniques could find a way to convert these items into some form of fuel. This sort of innovation will continue to solve many of the waste and carbon emission challenges the world currently faces. 

What Are the Disadvantages of Biofuels? 

1. High Production Costs: Alternative fuels currently face higher production costs compared to fossil fuels. For instance, biodiesel can be anywhere from 70% to 130% more expensive to produce than petroleum diesel fuel. One of the culprits behind current higher prices for renewable diesel is the increased demand and strain on feedstocks like sugar cane and other crops. However, production costs are expected to decrease and stabilize as investments in clean energy increase, feedstock availability improves, and economies of scale are realized.
2. Land Use Competition: Biofuel produced for various needs requires significant amounts of feedstock, potentially leading to competition for land use as global demand increases. This competition may result in a reduction of farmland for food production or an increase in deforestation to meet the growing demand for renewable feedstocks. This poses risks to food security and exacerbates other climate-related challenges with production.

Register for Live Webinar: Biofuels Market Update

Join ResourceWise’s Mat Stone for an in-depth exploration of the short-, mid-, and long-term forces shaping the renewable fuels landscape. From real-time price movements to strategic investment trends, this webinar will provide the clarity you need to navigate a dynamic and rapidly evolving market.

What you’ll learn during the session:

• Key policy developments like 45Z and their potential to reshape biofuels markets

• How tariffs and trade flows are influencing feedstock sourcing and global distribution

• The growing challenge of fraud in biofuels—and what safeguards are being put in place

• New frontiers in carbon sequestration at pulp mills and biogenic CO₂ utilization

• Progress reports on SAF, marine biofuels, and emerging feedstock innovation

Register now to secure your spot and stay informed in the biofuels sector.