Insights | CFP Energy

How Are Biofuels Made: What Are They Used For And Are They Reliable?

Written by Oliver Wood | 30 December 2025

Once limited to small-scale production, biofuels are now amongst the fastest growing types of fuel on the market. A combination of government-led initiatives and innovative new production methods has led to the rise of this alternative energy source.

At CFP Energy, we’re market leaders in procuring biofuels and feedstocks. To explore your options, contact one of our biofuel specialists.

Biofuels have managed to gain a foothold in the fuels marketplace within a relatively short period. Available as an alternative to gasoline and diesel, or mixed in special blends, biofuels are highly adaptable and, as a result, increasingly popular.

Already, biofuels make up 4% of transport fuels used worldwide, while the International Energy Agency has recently projected that biofuel demand will increase by around 30% from 2023 to 2028, making it one of the fastest risers in the fuels market.

This article will ask “what is biofuel used for?” exploring their production and distribution, while also looking at the low emissions profile that enables them to meet voluntary sustainability targets and fulfil strict regulations.

How Are Biofuels Made

Just as gasoline is made from crude oil, biofuels are also sourced from organically available materials. Unlike crude oil, feedstocks are compositionally diverse.

From corn and sugarcane to used cooking oil and algae, feedstocks can be almost any biomass, whether cultivated from energy crops or sourced from waste material.

A further benefit of biofuels is their sustainability. In contrast to fossil fuels, which release large amounts of carbon dioxide, biofuels can reduce CO2 emissions by up to 60% – both during the production stage and when finally utilised as a fuel.

This makes biofuels particularly attractive to hard-to-abate industries such as shipping and aviation - two industries where a combination of carbon emission caps and voluntary sustainability targets make biofuels an obvious choice.

Feedstock Selection and Growth

Feedstocks are derived from biomass that – in the context of biofuels – refers to organic matter that can be burned to produce energy, whether in the form of kinetic energy or heat.

Some feedstocks, like energy crops, are specifically grown to be used as biofuels. These are typically made from food crops like corn, sugarcane and soybean.

Other feedstocks are composed of non-food biomass. These include organic matter like forest waste, wood, straw, and agricultural residues.

Typically, these feedstocks are used in the production of second-generation biofuels, such as cellulosic ethanol and biodiesel.

Biofuel Conversion Methods

Sourced from naturally occurring as well as crop-based biomass, biofuels go through a range of distinct conversion methods before becoming a usable organic fuel.

Thermochemical Conversion

Using agricultural residues as feedstocks, this type of conversion process uses heat to transform biomass. These high temperature processes include pyrolysis, gasification, and combustion.

Biochemical Transformation

Biochemical conversion leverages biological processes, like anaerobic digestion, to break down biomass into fuel. This approach transforms agricultural residues, manure, and food waste into sustainable fuels such as biogas and bioethanol.

Physicochemical Conversion

Physicochemical conversion uses physical and chemical processes to change the form of biomass, resulting in bio-based products such as bio-oil, syngas, and biochar.

Refining and Blending for Transportation Use

 The main biofuels used in transportation are bioethanol and biodiesel. Both fuels are typically blended in different percentages (e.g. B20, B100, HVO100, E10, E15) to create fuels that can be used in conventional internal combustion engines.

Bioethanol

E10: a blend of 10% bioethanol and 90% gasoline, E10 is already widespread throughout Europe. Used for conventional gas-powered cars, lorries, and SUVs, bioethanol fuels like these can help lower emissions while increase octane.

E85: a blend of 85% etOhanol and 15% gasoline, E86 is used in flexible fuel vehicles (FFVs), vehicles that are specifically designed to run on gasoline and biofuels, either separately or blended into a single fuel.

Biodiesel

B20: a blend of 20% biodiesel and 80% petroleum diesel, this biofuel is used in all diesel engines worldwide, from trucks and buses to marine vessels and agricultural equipment. It offers a good compromise between sustainability and performance.

B100: pure biodiesel (B100) is used in certain specialty markets and fleets, including municipal fleets and public transit systems. Its green credentials include greenhouse gas reductions (up to 75%) and a lower overall output of particulate matter.

HVO100:  Hydrotreated Vegetable Oil 100, or HVO100, is a renewable diesel fuel made from sustainable sources like waste oils and fats. 
Produced as a renewable diesel alternative, it reduces carbon emissions significantly - up to 90% compared to traditional diesel.

Beyond Transportation - Broader Applications of Biofuels

 Alongside transport, biofuels are also used in industrial applications. One of the most efficient industrial uses of biofuels is Combined Heat and Power (CHP). These systems output both electricity and captive waste heat to power industrial processes.

 

For more conventional power generation, meanwhile, agricultural residues and forest residues are now routinely used in power plants, where they're either combusted independently or co-fired with coal.

Similarly, gas turbines – used to power industrial facilities - can be fuelled with biogas. This type of gas is typically generated from organic refuse or landfill, avoiding the kind of natural gas extraction that can potentially harm fragile ecosystems.

Biofuels - A Reliable Path to a Sustainable Future?

Despite recent advances in fuel production, many businesses seeking out low-carbon alternatives ask the same question: is biofuel reliable enough for large-scale operations?  Compared to fossil fuels, biofuels go through lengthy processes like fermentation and gasification, potentially delaying their route to market.

However, technological advances have recently accelerated biofuel production. Both ethanol and biodiesel, for instance, due to advanced enzymatic hydrolysis are now much simpler to produce. Derived from genetically-modified algae, fourth-generation biofuels are also now in development. Modifying these organisms improves light penetration and reduces photoinhibition, thereby increasing their energy efficiency.

New biofuels plants, like those in Huelva, Spain and Komárom, Hungary, should also help increase production, supporting scalability and ongoing investment; and with more common conversion methods, such as thermochemical conversion, being refined all the time, the market should see production costs and lead times continue to fall.

CFP Energy - Driving the Transition Toward Biofuel 

At CFP Energy, we are committed to supplying the most advanced biofuels on the market. Operating throughout Europe, and working with some of the largest industrial operators on the continent, our team can deliver long-term solutions to support your energy transition. 

Whether it's replacing your existing fuel with environmentally-friendly alternatives, or helping you navigate ETS regulations, we have the team, experience and the product selection to help you achieve success.

To see how we can decarbonise your sector, connect with our team here.