Biofuels are a renewable energy source offering a low carbon alternative to fossil fuels. Here, we explore the role of biofuels in the clean energy transition away from traditional oil and gas.  

What are biofuels?  

Biofuels are renewable, liquid form fuels derived from living matter such as plants and algae, known as biomass. They are being championed as one of the key renewable energy sources alongside wind, solar, tidal and other alternatives to fossil fuels which will aid and progress the net zero transition.  
 
There are a range of biofuels available, but the most common types used in the UK today are bioethanol, biogas, and biodiesel.


 

Bioethanol  

Bioethanol is being used as an alternative to the traditional fossil fuels rife within the transport sector. It is produced via one of two techniques: 

  • Fermentation – by using the sugar fermentation process obtained from cellulose rich plants like sugar cane, sugar beet, and various grains. Forestry residue and agricultural waste can also be used.  
  • Chemical – by reacting ethylene with steam.  

How is it made? 

Presently, the most common type of bioethanol is taken from plants which are produced specifically for its production, known as “first generation bioethanol”. However, “advanced” bioethanol” is in its research and development phase and allows bioethanol to be derived from plant species not intended for food, such as wood and algae.  
 
The most common blends of bioethanol are E5, containing up to 5 per cent bioethanol in unleaded petrol, E10, which has up to 10 per cent bioethanol and is approved for use in most conventional petrol-powered vehicles, and E15, containing up to 15 per cent bioethanol.  
 
In order for vehicles to be able to run on higher levels of bioethanol, such as E85, the engine will need to be designed to run on alternative fuels with a far higher ethanol content than petrol. However, most of the petrol available today contains some bioethanol and you won’t need to modify your vehicles engine up to E10.  

Benefits of bioethanol:  

The most glaring benefit of bioethanol is its renewable nature, making it a regenerative fuel. It also has a significantly smaller carbon footprint than petrol, with the difference in CO2 emissions generated compared to fossil fuels ranging from 19 per cent fo 86 per cent dependent on the crop. Bioethanol does produce CO2 when burned, but this comes from the CO2 absorbed by the plant during photosynthesis.  
 
As the UK transitions to a net zero economy, it will need to reduce its reliance on oil and gas and increase renewable energy capacity. Bioethanol supports this transition and can be blended with petrol to slowly reduce oil demand and maintain diminishing supplies. Finally, bioethanol is reliant on crops which can be cultivated in rural economies, supporting domestic agriculture rather than relying on oil imports from giant, multi-national corporations.  

Biodiesel 

Biodiesel is a cleaner-burning alternative to petroleum-based diesel, derived from vegetable oils and animal fats. Often referred to as B100 in its purest form or neat biodiesel in its unblended form, it can be used to fuel compression-ignition vehicle engines. In terms of supporting UK biodiesel, rapeseed presents the greatest opportunity for its production.  

How is biodiesel made?  

Over 80 per cent of biodiesel is made from vegetable oil, particularly derived from soybeans, rapeseed and canola, and in some cases using recycled restaurant grease and oil. Animal fats are used to produce some biodiesels, making it a non-vegan fuel source which may be a dealbreaker for some individuals.  
 
Similarly to bioethanol, biodiesel can be mixed with traditional diesel to make a blended biofuel, with varieties ranging from B5 up to B100. The majority of diesel available at petrol stations already contains upwards of 5 per cent biodiesel. In Northern Ireland, all standard diesel pumps now contain 10 per cent biodiesel.  
 
Biodiesel produces less carbon emissions than traditional diesel and the crops used in its production absorb CO2 as they grow. Presently, a key barrier to biodiesel production is the cost of treating raw oil. Waste vegetable oils can be sourced and treated at a lower cost, but biodiesel production on an industrial scale is currently too expensive to compete with fossil fuel diesel. 

Biogas  

Biogas is a renewable energy source made from biodegradable materials like maize crops and waste. Biogas can be compressed and used to fuel vehicles, or used as a replacement for natural gas. 

How is biogas made? 

Organic matter, such as food, crops, and animal waste, is broken down by microorganisms in the absence of oxygen in a process known as anaerobic digestion. The organic and waste materials need to be in an enclosed environment for this process to take effect.  The process occurs naturally, or can be implemented into an industrial process and produced intentionally.  
 
If biogas is cleaned and treated to natural gas standards, it becomes biomethane which is used in similar processes to methane, such as heating and cooking.  

Benefits of biogas  

Capturing the gases produced by naturally decaying matter, primarily methane and carbon dioxide, causes less environmental degradation than allowing these gasses to escape into the atmosphere. Biogas is a sustainable solution to managing agricultural waste and reaping the benefits of this product.  
 
The biogas process is largely cyclical, making it a sustainable process for managing agricultural waste. An example of this is using animal waste on a farm  to create biogas which then fuels the machinery on the farm.  


The role of biofuels in the clean energy transition  

Biofuels present a low-carbon fuel alternative for heavy emitting industries, such as transport and aviation.  It also provides a sustainable solution to managing waste in the agricultural industry, helping to reduce emissions via cyclical production.  
 
In 2021, the government outlined a target to incorporate renewable fuels into road transport. This target increased to 9.6 per cent in 2022 and will rise to 14.6 per cent of fuel by 2032.  
 
2022 saw record demand for biofuels at 4.3 EJ (170,000 million tonnes). Biofuel production is forecast to surpass 10 EJ by 2030 in the Net Zero Emissions scenario, meaning the sector will need to grow by roughly 11 per cent per year. Biofuel production from waste and non-food energy crops take up the majority (40 per cent) of biofuel demand by 2030.  

The UK’s renewable fuel mix 

According to the Department for Transport (DfT), renewable fuels made up 8.2 per cent of the UK’s road transport and non-road machinery fuel mix in 2023. Biodiesel accounted for 39 per cent of total renewable fuels with about 16 per cent of this made from used cooking oil.  Ethanol accounted for 35 per cent of renewable fuels with 50 per cent of this produced from corn, and biomethane took just below 2 per cent of the share.  

The food security debate  

Although biofuels are renewable and produce less emissions during their production process, research from the Green Alliance warns that biofuel supply could be worsening food shortages. 
 
The land used to grow biofuels could be used instead to harvest edible crops which would feed 3.5 million people, and biofuel imports are said to negatively impact food prices. There is also evidence that emissions from land use change from food to biofuel production is significant.  The estimated land use for biofuels in 2021 was 107,300 hectares, an area of land which could be used to produce food crops feeding 3.5 million people. By comparison, 140,000 hectares in the UK are used to grow potatoes.  
 
The solution is to limit crop-based biofuels in favour of biofuels produced from waste matter.  

Explore our Net Zero toolkit

A business guide to Carbon footprinting

Before you can start your journey to net zero, it is important to understand where you are starting from. This guide explains all you need to know about carbon footprinting and how to measure this in your business.

A business guide to ‘Scope 3’ emissions

What is meant by ‘Scope 3’ greenhouse gas emissions, why they are important and how can businesses begin to measure them as part of their carbon footprint?

A business guide to setting science-based climate targets

What is meant by climate change targets that are ‘science-based’, why are they important and how can businesses follow a science-based pathway in their own carbon reduction plans?

An introduction to environmental standards

There are a dizzying number of environmental standards and accreditations available to businesses today. In this guide, we take you through the key products to help you identify the most appropriate option for your business. 

Net Zero: What it is and why it matters to you

Net zero - what is it, why should you care and what can your business do about it?

How to be a green supplier

Research shows that the carbon footprint of the average supply chain accounts for 90 per cent of a business's carbon footprint. In this guide we explore the steps businesses can take to be a green supplier of choice.

Switching to renewable electricity

One of the simplest ways for you to reduce your impact on the climate is to switch your energy supply to renewable electricity, read our step by step guide. 

A beginner’s guide to carbon offsetting

When looking to reduce emissions from your operation, carbon offsetting appears an attractive quick fix. Here we explore how carbon offsetting works, when it can be effective and why it should be the final item on your carbon reduction to-do list.

Greenwashing: What it is and how to avoid it

Understand the principals of ‘corporate greenwash’ and why businesses need to be accurate, clear and transparent when promoting their environmental credentials.

Decarbonise Your Business

Sustainability and net zero support from Green Economy

Expert advice to help you reduce carbon, increase competitiveness and save your organisation money.

Explore services

Share this case study

Green Economy

Green Economy

Building a greener, net zero economy powered by local suppliers.