What Are the Advantages of Biofuels?

With many companies exploring biofuel advantages as a clean alternative to fossil fuels, the biofuels market is growing, and for good reason.

The International Energy Agency (IEA) has already predicted that world energy demand could double by 2050, while the Organisation of the Petroleum Exporting Countries (OPEC) has said that global fuel consumption will grow until 2035, potentially reaching up to 107.9 million barrels per day.

At CFP Energy, we are committed to supporting innovative biofuels. Supplying biofuels like FAME and HVO, we can help you reduce your greenhouse gas emissions today.

Developed as a response to sustainability concerns, biofuels provide a fitting solution to the twin challenges of meeting the world's rising energy demand. From production to delivery, biofuels possess many economic and ecological benefits over ordinary fuels.

This article will explain the advantages of biofuel energy, as well as the concerns that typically arise in assessing its strengths and weaknesses as a transitional fuel alternative.

Biofuel Advantages: How Biofuels Reduce Greenhouse Gas Emissions

When too much CO₂ is emitted into the atmosphere, the carbon cycle is disrupted.

Biofuels, due to their low carbon profile, help mitigate this effect. Not only do biofuels generally produce less CO₂ - due to their reliance on feedstocks - any CO₂ they do emit, unlike fossil fuels, is offset by the CO₂ captured by the plants used to make them.

Biodiesel, for example, produces 78% less CO₂ compared to petroleum diesel. The feedstock that goes into its production, meanwhile, such as algae, possesses carbon uptake properties that allow it to sequester 10–50 times more atmospheric carbon than terrestrial plants.

Exploring the Carbon Cycle - Fossil Fuels vs. Biofuels

Because of its decreased CO₂ emissions, together with its enhanced carbon capture properties, biofuels - perhaps unsurprisingly - have a lower footprint than fossil fuels.

The difference can be understood in terms of the carbon cycle: where fossil fuels typically disrupt the carbon cycle - reintroducing carbon sequestered over millions of years in the form of sediment and fossilised matter - biofuels help restore its natural rhythm, emitting recently captured CO₂ within a near Net Zero emissions loop.

This creates far less disruption compared to traditional carbon-based fuels, making biofuels a more sustainable and renewable choice, particularly for high-emission industries such as aviation, shipping, and heavy-duty road transport logistics used in sectors like construction.

At CFP Energy, we stand at the forefront of low-carbon biofuels and sustainable feedstocks. To see our feedstock offering, please access our product page here.

Supporting Domestic Production: The Advantages of Biofuels

An additional advantage of biofuels is their renewability: because they are made of easily grown feedstocks, as opposed to crude oil, which can take millions of years to form, biofuels are easy to regenerate, and less energy is consumed in their extraction.

A further advantage of biofuels is that they often rely on feedstocks that can be easily produced inland. Biofuels like algae, rapeseed oil, and food waste can be grown or harvested domestically, thereby decreasing our dependence on imports like fossil fuel.

Clean Air and Reduced Emissions - Biofuel’s Path to Net Zero

Reduced emissions can lead to improved air quality. Unlike ordinary fuel, biofuel contains far fewer pollutants. This helps reduce illnesses associated with poor air quality, such as asthma and Chronic Obstructive Pulmonary Disease (COPD).

How Biofuels Drive Rural Development and Job Creation

Beyond its immediate environmental impact, the advantages of biofuel energy are numerous.

Biofuels benefit the farming sector through the growing demand for feedstocks, and science and industry through the laboratories and plants required to develop and produce them.

The UK has already earmarked £37M to scale up feedstock and biofuel production, indicating that, along with supporting sustainability and reducing carbon emissions, biofuels are already driving economic growth amid significant government investment.

Exploring Biodiesel and Renewable Diesel

Although reduced CO₂ emissions and a lower carbon footprint are often associated with biofuels, a further advantage to their profile is their impressive energy performance.

For instance, biodiesel generally has superior combustion quality to ordinary diesel.

This is because biodiesel’s higher cetane enables smoother ignition and lower particulate emissions. Meanwhile, because of its improved lubricity, biodiesel can reduce engine wear, helping to enhance longevity and support mechanical efficiency.

Renewable diesel, which can be used as a direct replacement for petroleum diesel, possesses similarly enhanced performance characteristics. Studies show that renewable diesel blends (R30) exhibit 58% flow retention compared to 27% for pure diesel, demonstrating improved engine performance without modifications.

Potential Setbacks in Biofuel Production

Despite the many benefits of biofuels, there are several concerns over their sustainability, the main issues being their relationship to land use and feedstock competition. 

In the first place, where biofuel crops replace forests and grasslands, biofuel production can, potentially, lead to decreased carbon sequestration. This is because forests and grasslands, in general, have better carbon capture properties than agricultural land.

So, to ensure sustainable production, biofuel land-use must be strategically sourced, ensuring that land is only earmarked where it is degraded or underutilised.

Another issue with biofuel production is feedstock competition. This is where land used for food crops is used for biofuel production, potentially driving up food prices and food security as the production of crops - maize, soybeans - suffers reduced output.

To resolve this, any land designated for biofuels must be fully audited. If it turns out that the land is already used for food, biofuel producers must seek alternatives, ensuring that land is only used for biofuel feedstocks where food production is impractical.

A Brief Recap of Biofuels and Their Benefits

Biofuels are a green alternative to fossil fuels. With numerous environmental, economic, and performance benefits, biofuels are set to become a clean energy staple of the future.

Environmental Benefits:

Closed carbon cycle via carbon absorption and reduced CO₂ emissions
Improved air quality resulting from fewer pollutants, e.g., particulate matter

Economic Benefits:

Drives job creation and rural development through feedstock agriculture
Supports local investment through the creation of new biofuel refineries

Performance Benefits:

Supports comparable or superior engine performance to ordinary diesel
Enhanced combustion quality and reduced engine wear

CFP Energy: Powering the Transition to Sustainable Fuel

The transition to sustainable fuels is a complex path to navigate, calling for expert solutions and tailored advice. At CFP Energy, we provide market-making and hedging strategies to streamline the energy transition. From biofuels and biogas to feedstocks, we supply and offtake sustainable fuels to support emissions remits as well as broader ESG goals.

To see how you can use biofuels to decarbonise your industry, contact our carbon team today.