BIOFUELS

What are Biofuels?

Biofuels refer to renewable fuels derived from biological materials (biomass). They are widely used to refer to liquid fuels used in the transport sector to substitute petroleum fuel products. The two most common and commercially used biofuels today are biodiesel from methyl esters (commonly known as biodiesel) and biogasoline from ethanol (commonly know as bioethanol). Biodiesel methyl esters are derived from lipid (oils and fats) sources and biogasoline ethanol is derived from carbohydrate (sugar, starch and cellulose) sources, mostly from crop cultivation, harvesting and processing. “Waste” or by-product biomass from crops and animals are cheap feedstock sources for biofuels.

More broadly, outside of the transport sector, biofuels can also be liquid fuels (mainly lipid derivatives) and solid fuels (mainly woody cellulose materials) for direct burning in industrial and power station boilers. These are normally priced lower than the more stringent quality specification biofuels for automobiles. Depending on the biofuel, they can be used straight or blended in various proportions with petroleum fuels.

Research has been intensified to develop new feedstock crops and second and third generation biofuels which are more cost and energy efficient, such as ethanol from a variety of cellulose sources and biomass to liquid (BTL) gasoline and biodiesel.

Biofuels and Feedstocks Trade

The major feedstocks for biodiesel methyl esters is rapeseed oil in the EU, soyabean oil in the US and Brazil, and palm oil from Malaysia and Indonesia, while for biogasoline ethanol it is corn in the US and China, and sugar cane in Brazil. Tallow (yellow grease), used cooking oils and other waste oils are smaller sources of feedstock in many parts of the world for biodiesel esters. Cassava, sorghum, molasses and sugar beet are smaller feedstocks sources for bioethanol.

Production and trade in second and third generation biofuels would become commercially viable within the next decade.

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