Over the last few years, biofuels have been seen as a talking point surrounding environmental concerns and sustainability. However, with the recent goings on in the world, they seem to now be becoming a geopolitical talking point as well.
As disruption around the Strait of Hormuz continues to put pressure on global fuel markets, governments of several countries are expanding their biofuel policies. Interestingly, though, this isn’t just to reduce emissions, but to strengthen energy security and reduce reliance on imported oil.
For example, Brazil is increasing ethanol blending, Indonesia is pushing for aggressive biodiesel expansion, Malaysia is ramping up its palm-based fuel usage, and the US is once again debating wider access to higher-ethanol petrol blends.
What this means is that biofuels are moving away from being treated as a niche sustainability topic but are being looked at as part of strategic infrastructure development.
From a personal point of view, I’ve been talking about biofuels for a while, and all of the cars that leave us here at Bridge Classic Cars on a weekly basis run on biofuels produced by FU3L. I think this current change in perspective is extremely important because it changes the entire tone of the conversation around alternative fuels.
For a long time, debates around the future of the automotive industry have often been simplified too much. i.e., EVs versus combustion engines or old technology versus new technology. Obviously, it’s a lot more complicated than that, and what the governments of the above countries are doing is a result of their recognition that whatever form the energy of the future takes, it’s important to recognise it’s not a simple black and white answer, they need to look beyond just the sustainability side of things.
What Are Biofuels?
In very basic terms, biofuels are fuels made from biological material rather than fossil hydrocarbons. Common examples are ethanol, biodiesel, renewable diesel/HVO, and sustainable aviation fuel (SAF).
Traditionally, many biofuels have been produced using crops such as corn, sugarcane, palm oil and soya beans. These fuels are then blended with standard fossil-based petrol or diesel to reduce fossil fuel consumption.
One of the biggest advantages of biofuels is practicality, as, unlike some of the other current alternative energy solutions, biofuels can usually work within existing infrastructure. Fuel stations, refineries, transport networks and many existing engines can continue to operate with relatively limited modification (or sometimes no modifications are needed at all). That makes biofuels particularly attractive during energy instability because they can be scaled more quickly than entirely new systems, like hydrogen infrastructure, for example.
Why The Hormuz Situation Plays A Big Part In This
The Strait of Hormuz is one of the most strategically important oil shipping routes in the world. A very significant percentage of globally traded oil passes through it every single day. Any disruption there has almost immediate consequences for fuel prices, energy markets and global supply chains.
As I mentioned earlier, several governments have reacted quickly to this by strengthening their domestic fuel resilience as soon as the pressure increased. Brazil, one of the world’s largest ethanol producers, plans to raise the ethanol content in petrol as part of the country’s efforts to reduce petrol imports and stabilise prices.
Indonesia is speeding up its rollout of biodiesel blends containing up to 50% biofuel derived largely from palm oil, and Malaysia is also increasing palm-based biodiesel usage. (It’s important to note that palm-based biofuels remain controversial due to concerns surrounding deforestation, land use change and biodiversity loss).
In the United States, there is growing support for wider use of higher-ethanol petrol blends, particularly as fuel prices remain under pressure. Supporters believe it could help reduce costs for consumers while also easing dependence on imported oil.
Again, this is important because it shows biofuels are increasingly being viewed as a form of national resilience rather than just a tool for climate policy. What I think is an extra positive for biofuels is that countries with strong agricultural sectors suddenly have another strategic advantage in that they have the ability to produce at least part of their own transport fuel domestically.
The Problem With First-Generation Biofuels
Obviously, biofuels are not the final and only solution to reducing the carbon footprint of the automotive industry. One of the biggest arguments against them is based on first-generation biofuels.
These are fuels produced directly from food crops such as corn, sugarcane, soya beans and palm oil. A powerful argument against this type of biofuel is that if agricultural land is increasingly used for fuel production, there is less available for food production. If that is the case, it could lead to higher food prices, supply shortages, more pressure on poorer countries, deforestation, habitat destruction, and increased water usage.
This “food versus fuel” debate has become one of the main criticisms of large-scale crop-based biofuel expansion. This is a valid argument, as it means that not all biofuels are automatically sustainable simply because they are made without fossil fuels.
Second-Generation Biofuels
That being said, second-generation biofuels could be the answer to that criticism. These fuels are produced using non-food biomass and waste materials rather than crops grown specifically for fuel production.
The biomass used in these second-generation biofuels includes agricultural waste, forestry waste, used cooking oil, animal fats, municipal organic waste, crop residues, wood chips, and algae. There is no denying that this changes the sustainability equation significantly.
Instead of competing directly with food systems, second-generation biofuels attempt to make use of materials that would otherwise be discarded. For example, good-quality HVO produced from genuine waste feedstocks can dramatically reduce lifecycle emissions while still working perfectly in many existing diesel engines without major modification. Unlike traditional biodiesel, HVO is chemically closer to traditional diesel, which is why it can often be used in existing diesel engines without modification
That is extremely important because one of the biggest challenges in decarbonisation is not just developing cleaner fuels but actually doing it at a scale and cost that existing infrastructure can realistically support.
More Than One Answer
I believe that the future of the automotive industry is unlikely to be solved by one single technology. It’s important to keep in mind that despite how polarised discussions have become online, real-world energy systems are never as simple as most of us believe.
Electric vehicles make complete sense in many situations, hydrogen may have a role in heavy transport and industry, synthetic fuels may help preserve existing internal combustion vehicles, and advanced biofuels could support aviation, shipping and energy resilience. For what it’s worth, personally, I think the future fuel solution is much more likely to be multi-layered than a one-size-fits-all. Realistically, that makes for a more robust and healthier long-term approach anyway.
Biofuels Are Now Becoming More Important
Everything going on with the Strait of Hormuz is showing that alternative energy solutions are not just about sustainability. They should also be looked at as part of economics, geopolitics, national resilience and energy security.
The challenge now is making sure that the growth of alternative fuels does not move the pressure from oil markets to food systems and ecosystems instead. I think second-generation and waste-derived fuels represent some of the most promising opportunities within the sector. This isn’t because they are perfect and should be the only answer, but because they could potentially be one of the more practical near-term pathways for reducing emissions without completely replacing existing infrastructure.
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