Our approach to waste-based biofuels
Current ecological revolution is a great opportunity for industries that want to benefit from circular economy
The challenge of circular economy
Historical and strategic engagement
since 2007, we are present on waste-based biofuels MARKET.
we are convinced that circular economy is a sustainable phenomenon.
What does it mean to be part of circular economy?
- Considering sustainability of the products as their key aspect
- Limiting competition with the food sector
- Reducing the impact of biofuels on the environment
- Promoting the recycling of waste-based feedstock
80% of our transactions concern waste-based products.
Pressure on the waste-based feedstock will grow in the next years
In the next five years, 1.5G FAME, 1.5G HVO and 2G HVO are therefore the solutions of choice. However, the winning companies in these biofuel segments need to overcome two challenges:
- Acting fast to get hands on the feedstock: 1.5G and 2G feedstocks deposit are starting to be exploited by many companies which already made their moves to take control on the feedstock around the world. Our analysis has shown that UCO, Animal fats, Tall Oil, POME and SBE are the focus feedstocks. Having local human presence and logistics assets close to suppliers is then the key to control feedstock.
- Produce 2G biofuel at scale: 2G feedstock quality is worse than 1G/1.5G feedstock quality. Being able to produce 2G at scale is still an open issue since feedstock pre-treatment technologies are just emerging.
Second generation biofuels: a sustainable solution
our vision of the market till 2030:
- Overall biofuel demand growth will increase its pace as aggressive renewable energy policies are put in place worldwide
- In the road transportation sector, biodiesel and bioethanol mandates are growing (e.g. 14% target in 2030 in Europe according to RED II)
- In the aviation sector, CORSIA framework will impose strict GHG reduction policies to airlines worldwide
- In the maritime sector, low sulfur-content fuels will become the norm by IMO 2020
- Massive investments in production capabilities of higher-quality biofuel types such as hydrotreated vegetable oils (HV0) are taking place
- Securing feedstock sourcing will be of vital importance in a context of commercial tensions (e.g. sino-american tariffs war, anti-dumping EU regulations…) and political developments (Brexit, growing protectionism, product bans…)
- New competitors are entering to the alternative fuels market like BioGNV, EV, Hydrogen.
Source: Greenea Analysis
Notes:
1: Regarding sludge oil, we only considered the raw material coming from vegetable refining processes
2. We only considered advanced feedstock; whose supply is not negligible. For e, g., algae supply –
here not considered, althrough present in 9A – is assumed to be too low in 2030, as not being enough industrialized for biofuel uses
Why second generation biofuels?
direct work places created by waste-based biofuels sector in Europe till 2030
possible GHG emission reduction compared to regular diesel
limit established by the EU on biofuels produced from vegetable oils
number of kilograms of CO2 avoided per 1 litre of UCOME compared to the use of regular diesel
How do we see the evolution of the biofuels sector?
Circular
It is the precondition for more effective waste recycling of waste-based feedstock. Circular economy improves the carbon footprint of biofuels.
Innovative
It is thanks to investments in new technologies (pretreatment and distillation columns) that market players are able to adapt to market demands and integrate new types of feedstock in to their production.
Integrated
Security of supplies, traceability and risk management are crucial for all the market players.