Confronted with emerging oil costs, will salvation come from biofuels? Lately, essentially the most attention-grabbing biofuels are the second one era, which depend on by-products from agriculture and the forestry trade, with out pageant with meals. However in tropical international locations, reminiscent of Malaysia or Indonesia, the fragmentation of the panorama and the prime humidity of the residues briefly result in an building up within the invoice: sufficient to impact the competitiveness of this choice.
Oil tensions brought about by means of the Iran struggle despatched the cost of Brent emerging to greater than $100 (or €85.88) according to barrel in early March 2026. Since then, in step with diplomatic hopes, costs were on the upward thrust. Finally, business flows are some distance from returning to commonplace ranges.
On this context, biofuels – which come with part of biosources, both bioethanol or biodiesel – are once more changing into extra visual. Be aware that not one of the biofuels to be had on the pump are “pure” bioethanol or biodiesel; they’re at all times blended with standard fuels. Thus, in France in 2024, diesel and fuel fed on on the pump accounted for a complete of about 9% of renewable power from organic resources.
Indonesia and Malaysia, which undergo particularly from the blockade of the Strait of Hormuz because of their oil provides, have not too long ago introduced will increase within the content material of palm oil of their biofuels – on the possibility of accelerating the cost of palm oil and aggravating deforestation.
Those present fuels stay, for essentially the most section, first-generation biofuels. 2d-generation biofuels, derived from lignocellulosic residues quite than food-competing vegetation, seem extra fascinating. However below what stipulations can they actually be aggressive with petroleum-based fuels?
We now have but to look their exact prices. In Malaysia, we’ve performed a number of research that disclose the lifestyles of a number of hidden prices associated with the fragmentation of the territory, but in addition the tropical local weather, which calls for the shipping of subject matter this is nonetheless rainy, as it can’t be left to dry on website.
Other generations of biofuels
Let’s get started by means of reminding ourselves what we imply by means of first, moment or 3rd era biofuel.
First-generation biofuels use agricultural uncooked fabrics that compete with meals, as an example bioethanol from beets, canola, corn or wheat, or biodiesel from canola, soybeans or palm oil.
2d era fuels, for his or her section, don’t compete with meals. To the contrary, it’s in regards to the recycling of agricultural or forestry residues, so necessarily cellulose (straws, pellets, and so on.), or “used” safe to eat oils from the catering trade.
3rd era vegetation (reminiscent of microalgae cultures) after all promise to triumph over those limits as a result of they don’t use agricultural or woodland spaces like the primary two, however for now stay much less stabilized technologically and economically.
Because it stands, the primary two generations are the one ones that experience actually been mastered on an business scale. The controversy subsequently, for now, makes a speciality of the concrete stipulations for the luck of the second one era of biofuels.
The primary hidden value of second-generation biomass: territorial fragmentation
Biomass isn’t a concentrated useful resource. It’s unfold, most commonly, in area, in kind of fragmented fields and forests. Alternatively, the extra this sort of useful resource is dispersed over the territory in small gadgets, the extra its assortment value will increase.
Our paintings in Malaysia displays that the price of provide will increase each time spatial fragmentation will increase. For a million heaps of exact to be had biomass, this represents greater than $4 (or €3.44) according to ton according to further unit of spatial fragmentation. For instance, this spatial fragmentation has been estimated at about US$3.3 for woodland waste – and much more than US$6 for positive palm picket waste – in comparison to about US$0.3 for sawmills generating plywood.
The remainder of the logistics is solely as essential. In reality, the price of provide will increase on moderate by means of greater than 6 bucks (or 5.15 euros) according to ton according to 100 kilometers of shipping. And the have an effect on of truck dimension is solely as vital: shifting from a small one-ton truck to a 26-ton truck can cut back prices by means of about $84 (greater than €72) according to ton.
Aerial photograph of a highway in oil palm groves in Malaysia. Mate Walther/Shutterstock
This has a number of essential implications. It appears ample biomass in a given territory is also uncompetitive whether it is too fragmented. Conversely, a much less ample however extra concentrated useful resource might turn out to be extra attention-grabbing at an business degree.
This rule is especially essential in Indonesia and Malaysia, the place tropical mosaics of plantations, forests, roads and small business gadgets don’t have anything to do with the extra homogeneous territories present in, as an example, positive agricultural areas in Europe and the USA.
Water content material, any other hidden value
That isn’t all. All stays of plant biomass comprise a better or lesser share of water.
An in depth-up of an oil palm, appearing the fronds (fronds) extending from the stump and the fruit within the center. Picril/Pikabai
Alternatively, transporting water in biomass approach spending extra gasoline to transport the mass that won’t produce helpful power.
Our different paintings displays that during Malaysia, with related availability, rice straw stays a lot more aggressive than palm leaf, because of its prime moisture content material.
These kinds of elements give a contribution to the rise in biofuel manufacturing prices:
When handiest the spatial fragmentation of sources will increase, the optimum biofuel value will increase by means of 17%.
When humidity by myself will increase, it will increase by means of 42%.
When moisture and fragmentation are mixed, the price will increase by means of 69%. On the similar time, the optimum capability of the biorefinery plant that processes those residues decreases by means of 36%.
Within the humid tropics, the adaptation between dry and rainy subject is subsequently a big value determinant. This level additionally applies to methods that mix different types of biomass: blending a number of residues does no longer mechanically make stronger competitiveness. In point of fact, all of it will depend on what the combination does at moderate humidity.
EFB residues on soil in an oil palm plantation within the Philippines. Usaid Biodiversity and Forestry/Flickr
Our paintings displays that the commercial provide of empty bunch residues (EFB) (the title given to the plant derivative bought after harvesting the end result), at 60% moisture, will also be 31% much less winning than the provision combining each EFB and pressed fruit fibers (a fibrous derivative bought after the extraction of palm oil by means of urgent), which has a median moisture of 48%.
Combined procurement can subsequently be a very good technique… supplied you steer clear of any blending that will upload water to the shipping and negate the anticipated benefit.
The optimum manufacturing facility isn’t at all times the most important
In spite of everything, there’s a 3rd hidden value, associated with the economies of scale that we’d consider by means of centralizing the processing of biomass residues. In reality, there may be an business idea that dates again to the discovery of Fordism: the larger the manufacturing facility, the more potent the economies of scale. That is true in concept, however in apply, it should or is probably not true relying at the case.
Relating to biofuels, this rule briefly clashes with the real geography of the useful resource. The bigger the plant, the additional it’s important to search for biomass that is kind of wet, fragmented, probably tricky to get right of entry to or pricey for pre-treatment. Quantity beneficial properties when it comes to procedure for the refinery can then be offset by means of upstream prices. Due to this fact, all biomasses are of various pastime, relying at the context.
Relating to Malaysia and Indonesia, the second one era fermentation path is essentially the most aggressive, with rice straw and pressed fruit fiber. Against this, palm bushes and likely rubber residues aren’t winning for biorefineries.
However somewhere else the placement will also be the other. Commercial technique should subsequently no longer be in keeping with most economies of scale, however on adapting business capability to the real subject matter to be had at the flooring, its moisture, its dispersion and its get right of entry to.
Customized, no longer ready-made
Biofuels are, generally, a very good way to risky oil costs. However they aren’t environment friendly handiest as a result of the abundance of biomass. They require wonderful engineering works: drying, pre-treatment issues, assortment and grouping issues, number of combos, logistics, adjusting the scale of factories, and so on.
Plans conceived for the nice homogenous plains of the American Midwest, the place ethanol manufacturing is targeted within the Corn Belt, or for positive agricultural contexts focused on canola or turnips in Europe, might not be transferred as they’re to tropical international locations. Particularly in Southeast Asia, the place humidity, fragmentation and native constraints alternate the entire equation.
Biofuels can’t be diminished to a easy exchange for oil, the place the similar resolution could be used all over the place. Those are regional answers, which is able to handiest paintings if they’re designed area by means of area.
