Waste-based biofuels can be one of the main drivers of the energy transition. That's the conclusion of a report by wood mackenzie consulting. This role would be achieved by transforming today's limited supply of low-carbon transport fuels by creating a local circular economy.

Currently, the publication points out, biofuels account for only 3% of the current demand of 100 million barrels per day (b/d) of liquid fuel. However, the development of new technologies that drive production from municipal waste, agricultural waste and plastic waste recycling is touted as a "watershed for the energy transition".

According to Wood Mackenzie, this could provide an additional 20 million barrels per day (b/d) of liquid biofuel by 2050, thus satisfying a quarter of all future net fuel demand (95 million b/d by 2050), equivalent to about three quarters of 2050 demand.

According to the consultancy, there are still many opportunities for growth, especially when we look at waste-based alternatives and not food-based production, which has naturally discouraged the industry. For some areas of the transport sector, such as the air sector, there is little alternative to liquid fuel, making decarbonization difficult. This biofuel source can be tremendously beneficial by providing a cleaner alternative that meets future energy and environmental needs.

Another benefit is that by using these materials as fuel, there will be significant savings in landfill or incineration costs and related emissions. And he points out that according to the International Energy Agency, the Net Zero path requires that almost half of the biofuels consumed in 2030 be produced with waste.

The consultancy reports that several technologies are under development to convert these solid wasteinto liquids. These involve pretreatment to "wash" the materials, followed by thermal cracking (pyrolysis or gasification) to convert the residues into hydrocarbons. The last step is processing at a conventional refinery to create biofuel versions of the crude oil-based products we use today.

This process will give rise to a circular economy. Because the transportation of solid waste at a distance is expensive, supply chains will be local, where products can be collected and processed in small-scale facilities outside towns and villages.

Refineries know how to do this, and for many, this could be the key to their long-term viability. This would bring enormous benefits to local economies and jobs, creating a powerful argument for governments to develop incentives. These incentives could be in the form of a "carbon tax credit" that would create a level playing field with fossil fuel-based products and significantly improve the competitiveness of biofuel.

Source: Canal Energia