In the EU, IRENA’s released its latest report, Innovation Outlook: Advanced Liquid Biofuels, the second in the Innovation Outlook series which includes a renewable mini-grid report and an upcoming offshore wind power report, reveals a future global outlook for advanced liquid biofuel technology. It provides a detailed overview of the promising technological developments for commercialised advanced biofuel production to the year 2045.
The report indicates that by 2045, advanced biofuels are likely to cost between USD 0.60 and USD 1.10 per litre to produce, meaning that with oil prices above USD 100 per barrel, most advanced biofuels should be able to compete effectively. But the report also predicts that if oil prices are below USD 80 per barrel, advanced biofuels production would have a difficult time competing with fossil based gasoline and diesel. Therefore, there is an urgent need for decisive policy actions that will unlock the potential for advanced liquid biofuels, and enable innovative business models to co-produce high value products along with biofuels.
Advanced biofuels typically reduce greenhouse gas emissions by 60 to 95 per cent compared to fossil fuel, placing them in a unique position as the only viable alternative to mitigate carbon emissions from the aviation sector — an industry which represents a market around 380 billion litres of jet fuel per year.