Biofuels help energy customers reduce their carbon footprint. Yet myths about them persist. So, what's true and what's false?
Energy choices have never been more important. We consume 4.5 billion tonnes of fossil oil globally every year. Around a quarter of that is for transportation, and millions of rural, off-gas-grid households still rely on oil for heating. The choices we make now about how we fuel our cars, trucks, businesses and homes will be a key factor in how quickly the world reaches net zero1.
DCC Energy is invested in making biofuel and biogases readily available to customers, helping them reach their emissions reduction targets faster.
DCC Energy supplies several biofuels, among which is hydrotreated vegetable oil (HVO) – a second-generation biofuel that makes a convenient, drop-in alternative to fossil diesel. Second-generation renewable fuels like HVO are often misunderstood, especially when they're confused with first-generation conventional biodiesel (FAME) or with biofuels produced from food such as soy or sugar cane.
Sounds complicated? Don't worry, help is at hand. Read on for the facts behind five common biofuel myths:
Myth 1: Biofuels aren't widely used and will never be a significant replacement for fossil fuels.
Fact: The biofuels market is growing rapidly – and renewable diesel is leading the charge in road transport.
According to the IEA, in 2023 biofuels accounted for 5.6% of all liquid fuel used by transportation globally2 – up from around 4% in 2019. That share is forecast to reach 6.4% by 2030, equivalent to 215 billion litres a year, with renewable diesel among the fastest growing segments in road transport. The global market is projected to roughly double in value by the early 2030s3 as blending mandates tighten and demand grows across road, aviation and maritime sectors.
The direction of travel is clear, even if the pace varies by region. Many commercial fleets have already begun the switch to biofuels. Regulatory obligations on fuel suppliers to increase the mix of biofuels in petrol and diesel, with reduced energy taxes at the pumps in some locations, have also contributed to a steady reduction in the carbon intensity of transportation fuels in parts of Europe and the US. IEA World Energy Outlook suggests that the role of biofuels in transport will continue to be significant in the coming decades, especially in the aviation and maritime sectors, even as electrification accelerates.
