Waste-Based Biofuels: Catalyzing the Energy Transition and Circular Economy

Waste-based biofuels have the potential to become a driving force behind the energy transition, offering a sustainable alternative to traditional liquid fuels.

FREMONT, CA: In pursuing sustainable energy sources and reducing carbon emissions, waste-based biofuels have emerged as a promising solution. A recent report highlights the potential of biofuels derived from municipal waste, agricultural residue, and recycled plastics in driving the energy transition and fostering a local, circular economy. While biofuels currently account for only 3 percent of the global liquid fuel demand of 100 million barrels per day (b/d), developing innovative technologies to produce biofuels from waste materials could revolutionize the industry and accelerate the transition to a low-carbon future.

Due to concerns over food security and potential competition with food production, many governments have moved away from using food-based biofuels. However, waste-based alternatives offer ample growth opportunities and provide a sustainable solution for industries with limited alternatives for decarbonization. In sectors like air travel, where liquid fuel remains essential, waste-based biofuels can serve as a cleaner alternative, addressing both power and environmental needs.

The utilization of waste material as a fuel source not only reduces landfill and incineration costs but also mitigates associated emissions. Biofuels derived from plant-based feedstock, such as bio-based diesel and aviation fuels, have the potential to emit 80 percent less carbon compared to crude oil-based products dominating the current market. Adopting waste-based biofuels can significantly curb carbon emissions and provide a solution for challenging industries to electrify. Studies indicate that 45 percent of biofuels consumed by 2030 should be produced from waste to achieve a net-zero pathway.

Several technologies are being developed to convert solid waste into liquid biofuels. These processes typically involve pre-treatment to prepare the waste materials, followed by thermal cracking (pyrolysis or gasification) to convert them into hydrocarbons. The final step includes processing in conventional refineries to create biofuel versions of existing crude oil-based products. This transformation to waste-based biofuels fosters a circular economy where supply chains become localized. Small-scale facilities outside cities and towns can efficiently collect and process waste products.

Being local offers significant advantages in waste-to-biofuel conversion. The biofuels ecosystem can adopt a hub-and-spoke distribution model, where waste is initially converted to biofuels at local facilities and then aggregated for further processing in existing refineries. Refineries already possess the necessary expertise, making this approach essential for long-term viability. Moreover, the local production of biofuels creates economic opportunities and employment, providing governments with a strong incentive to support the industry through various incentives, such as carbon tax credits.

If waste-based biofuels gain momentum, the projections for an accelerated energy transition are staggering. Biofuels could fulfill two-thirds of the demand in hard-to-decarbonize transportation sectors while serving as circular feedstocks for petrochemicals. Some petrochemical companies are already spearheading impressive waste plastic recycling programs, demonstrating the feasibility of these technologies. By embracing waste-to-biofuel conversion in the refining sector and receiving government support, we can pave a viable pathway towards a circular economy that mitigates climate change and reaps its numerous benefits.

By utilizing municipal waste, agricultural residue, and recycled plastics, biofuels can significantly reduce carbon emissions and address the decarbonization challenges faced by various industries. Developing localized production facilities and adopting a circular economy approach further enhance the environmental and economic benefits. With government support and the collaboration of the refining sector, waste-based biofuels can accelerate the global transition to a low-carbon future while fostering a more sustainable and circular economy.