Biofuels and bioenergy have been going through a constructive transformation in recent years similar to other clean fuels and energy. Like hydrogen, the source of the biofuels and energy is diversifying as is end-user applications. Production capacity has been increasing.
The U.S. Energy Information Administration (EIA) recently reported that the capacity to produce biofuels increased 7% in the United States during 2023, reaching 24 billion gallons per year at the start of 2024, led by a 44% increase in renewable diesel and other biofuels. The other biofuels includes renewable heating oil, renewable jet fuel (also known as sustainable aviation fuel), and renewable naphtha and gasoline. With continuing state and federal tax incentives, and regulatory policies, plant expansions, and projected new plant construction, EIA expects U.S. biofuels production capacity to continue increasing.
Ethanol that gets blended into gasoline at 10-to-15 percent is still dominated by corn, with the U.S. Dept. of Energy reporting that 94% is produced from the starch in corn grain. Cellulosic ethanol, which comes from either waste, coproduces of another industry (wood, crop residues) or dedicated crops such as switchgrass, is seeing an increase in consumption as ethanol-blended fuel use increases around the world.
The number of fuel stations in the U.S. offering E-15 was 4,495 in 2023, up from 2,839 in 2014, according to USDA Economic Research Service – U.S. Bioenergy Statistics. Biodiesel at fuel stations increased from 782 stations in 2014 to 1,700 in 2023.
As you can see from these two tables created by the USDA Economic Research Service, ethanol used in fuel and renewable diesel have been seeing increases in production and consumption over the past decade. Renewable diesel has seen dramatic gains, similar to renewable natural gas, as the the supply and consumption continue to grow, backed by government mandates and technology improvements in the production and distribution channels.
Here are a few other news developments in this sector:
- The U.S. Department of Energy’s Bioenergy Technologies Office (BETO) announced their intent to issue funding to support high-impact research and development (R&D) projects in two priority areas: sustainable propane and renewable chemicals and algal system cultivation and preprocessing. The intended Sustainable Propane and Renewable Chemicals (SPARC) funding opportunity would support R&D of domestic chemicals and fuels from biomass and waste resources to help secure domestic supply chains, support the growth of rural economies, and grow the nation’s competitiveness in the biotechnology and biomanufacturing industry. It could include up to $23 million in federal funding.
- The intended Maximizing Algal System Yield (MASY) funding opportunity would support applied algal system R&D to improve the affordable production of biofuels and bioproducts. While algal systems can be highly productive, there are technical barriers that limit the expansion of algae as a domestic bioenergy feedstock. The MASY funding opportunity will address these challenges by focusing on algal system cultivation and preprocessing R&D to advance affordable and reliable development of innovative algae technologies that can support algae developers bring these new bioproducts to market. The potential MASY NOFO could include up to $10 million in federal funding and is expected to be released in January 2025.
- Renewable natural gas (RNG) could scale up sustainable aviation fuel (SAF) by utilizing established gas-to-liquid (GTL) technologies, according to Biofuels Digest. These technologies could include SynCOR autothermal reforming and Fischer-Tropsch (FT) synthesis. This approach combines proven processes with innovative adaptations, creating a high-carbon-efficiency pathway for SAF production. It could also mean another significant market for RNG to serve with new mandates globally driving adoption of SAF.
- Gevo, a Colorado-based renewable chemicals and advanced biofuels company, has worked with LG Chem to extend their joint development agreement. The agreement extension enables LG Chem to assess existing assets for deploying Gevo’s Ethanol-to-Olefins (ETO) technology while accelerating commercialization activities, considering project scale and end-product markets. Gevo’s patented ETO technology can target carbon-neutral or carbon-negative drop-in replacements for traditional petroleum-based building blocks. These are core olefins, that can be used for renewable fuels and chemicals, including sustainable aviation fuel and bio-propylene. ETO technology is just one of multiple patented technologies that Gevo is bringing to bear on the challenges of developing cost-effective bio-based renewable fuels and chemicals.
- A marine research engine at the U.S. Department of Energy’s (DOE) Oak Ridge National Laboratory is providing scientists with valuable insights into biofuel design for large ocean-going vessels (OGVs) in a multi-lab project focused on reducing total life-cycle carbon emissions from this vital transportation sector. Scientists at DOE’s national laboratories knew their work on biofuels for marine use would be needed to meet the revised target. Their efforts are concentrated on large OGVs like cargo and container ships, which account for more than 80% of all transported goods and 3% of global GHG emissions.
- Major oil and gas companies have ramped up investments in the biofuels sector, betting on sustainable aviation fuel (SAF), with 43 projects expected to be up and running by 2030, consultancy Rystad said in a report. The energy research firm indicates that investments by industry giants such as ExxonMobil, Chevron, BP, Shell, TotalEnergies, and Eni could add 286,000 barrels per day (bpd) of production capacity.
California ZEV law under scrutiny: On Friday, the U.S. Supreme Court announced that it will review whether the oil industry has the standing to challenge the existence of California’s zero emission vehicle standards, which are stricter than the federal fuel economy and greenhouse gas emissions rules. The case filed by oil companies, other fuel producers and 17 other states, argued that the federal government exceeded its authority under the Clean Air Act when it granted California a waiver to set its own tougher auto emissions standards. The justices rejected the fuel industry’s request to consider whether it was unlawful for the Biden administration to grant California the federal waiver. The Supreme Court will be examine whether the fuel companies that appealed a lower court ruling have the standing to sue.
This case will be considered as the Trump team plans to cut electric vehicle tax credits, roll back emissions standards, and limit funding for EV charging deployment; and as the Biden administration may soon allow California and at least 11 other states to set new emissions standards that would allow for the sale of primarily EVs by 2035, according to reports.
CA approves $1.4B for charging and fueling: The California Energy Commission (CEC) on Dec. 11 approved a $1.4 billion investment plan that accelerates progress on the state’s electric vehicle (EV) charging and hydrogen refueling goals. These investments will help deploy infrastructure for light, medium, and heavy-duty zero-emission vehicles (ZEV) across California, expanding the most extensive charging and hydrogen refueling network in the country. The plan details how the CEC’s Clean Transportation Program will spend $1.4 billion in state funding over the next four years, with at least 50 percent targeted to benefit priority populations. The funding is part of the $48 billion California Climate Commitment, which includes more than $10 billion for ZEVs and ZEV infrastructure. It ties into the state also receiving billions from the Biden-Harris Administration for clean transportation.
AirNow mobile app update: The U.S. Environmental Protection Agency has updated the AirNow mobile app to allow users to receive optional push notifications of their local Air Quality Index forecasts for the next day. State and local air agencies issue AQI forecasts as a public service to help people plan their outdoor activities. The agencies provide them to EPA, which shares them on the AirNow app and Airnow.gov website. Until now, AirNow users had to remember to check the app or website to see their forecasts; with the updates to the AirNow mobile app, people can opt to be notified when the daily forecast reaches an AQI category of their choosing. You can find more information on AirNow with links to Apple and Android apps at this link.
Volvo and DHL partnering on AVs: Volvo Autonomous Solutions (V.A.S.) and DHL Supply Chain recently announced their first step in performing autonomous freight operations in the U.S., utilizing a purpose-built, production-ready Volvo VNL Autonomous powered by the Aurora Driver. Drivers will be onboard during an initial phase to monitor performance and integration into the logistics networks. “Early adopters play a pivotal role in accelerating the deployment and acceptance of autonomous technology, enabling us to validate both safety and operational performance,” said Sasko Cuklev, head of On-Road Solutions at Volvo Autonomous Solutions. “Our collaboration with DHL Supply Chain exemplifies the potential of autonomy as a complementary mode of transport that increases freight capacity and optimizes supply chain efficiencies.”
