A fuel revolution picked up speed
Cleaner fuels are gearing up for a major growth spurt with refinery capacity forecast to triple by 2030 amid soaring demand.
That’s according to a report from market analysts, Global Data. It analysed a range of fossil-free fuels, such as ‘renewable diesel’, which is made from waste vegetable fat. Though such fuels do produce emissions, they are significantly lower than their fossil fuel equivalents – and could therefore have a role to play in the energy transition.
The report puts current biofuel refinery capacity at 11.7bn gallons per year, and forecasts that to rise to 35.4bn gallons by 2030.
Biofuels offer significant opportunities to decarbonise transport, the report says, as they can be blended into existing fuel infrastructure. Renewable diesel, for example, can be used without modifying engines. Sectors that are hard to electrify, such as shipping and aviation, should benefit from low-carbon hydrogen, ammonia, methanol and e-fuels, it added.
The report also highlights opportunities for oil and gas firms to convert existing refineries and switch to processing waste fats, vegetable oils and other sustainable feedstocks.
“As road vehicles, aircraft, and vessels cannot all transition away from liquid and gaseous fuels at the same pace, alternative fuels provide a practical route to lower emissions while maintaining fuel reliability, range and operational flexibility,” said Ravindra Puranik, an analyst at Global Data.
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