Clean Energy Technology Observatory, Advanced biofuels in the European Union :Status report on technology development, trends, value chains & markets : 2023
26 October 2023
This report highlights the current state of advanced biofuel production, including various technologies and challenges faced by the industry. Despite the existence of commercial pathways for advanced biofuel production, there is limited installed capacity and planned production. However, innovative technologies such as biomass gasification and biomethanol production have shown promise in industrial settings. The main challenges include high capital expenditures and the availability of sustainable biomass feedstock. Investment in biofuels research and development (R&D) and venture capital (VC) investments in biofuel firms have shown a decrease in recent years. The EU accounts for a significant portion of both early and late-stage investments, as well as being a leader in high-value patents. The biofuels sector has made a significant contribution to the EU GDP and job creation. However, the EU has a negative biofuel trade balance due to increased imports. The sector of advanced biofuels is just beginning to emerge, with limited commercial plants and international trade. Harmonized definitions for advanced biofuels are lacking at the international level.