Biofuel can be the Fuel of the Future
Biofuel is a kind of renewable energy that emits less carbon dioxide. Different types of biofuel are usually derived from microbial, plant, or animal materials. There are two types of biofuel: ethanol and biodiesel.
Ethanol is made of agricultural waste such as sugar cane or maize, wood chips, and waste paper. This biofuel is usually combined with gasoline to be used in cars. The percentage of this combination depends on whether the vehicle has been modified to accept biofuel or not. Gasoline combined with biofuel creates 15% less carbon monoxide when burnt.
Biodiesel is made through the combination of alcohol and recycled cooking grease, animal fat, or vegetable oil. This kind of fuel helps nature by reducing the amount of burnt up oil that pollutes the earth. Biodiesel is highly combustible; therefore, it creates enormous amounts of energy when burnt. This means that using it in transportation can be cost-effective as well as efficient.
What are the main applications of biofuels?
Transportation
One of the biggest causes of air pollution and gas and gasoline consumption is transportation. Cars account for more than 24% of global fuel consumption. There are several alternatives to reduce fossil fuel consumption, one of which is using biofuel. Several car brands across the world have adapted their cars to use biofuel as well as fossil fuels. For instance, all Lamborghini models, Lexus, and Maserati are equipped to use both kinds of fuel.
Generally speaking, any kind of car that runs on gasoline can also use the 10% ethanol and 90% gasoline blend. However, to use the other type of ethanol, the car’s engine and fuel system should be modified. Nowadays, more than four million vehicles in the United States have been adapted to biofuel.
There are other brands of cars that have been specifically designed to use biodiesel. For example, Audi, BMW, Chevrolet, Ford, General Motors, Isuzu, Land Rover, Mazda, Mercedes, Mitsubishi, Nissan, Peugeot, Saab, Toyota, Volkswagen, and Volvo have all created models with the biodiesel-friendly system.
Aviation
Biodiesel mostly has the same density and consistency as the standard jet fuel. Therefore, with a few simple modifications, airlines can adapt their plans to use biofuel. The problem is that using biodiesel as jet fuel is neither sustainable nor very cost-friendly. In fact, using biodiesel is more expensive than regular fuels. On the other hand, it can reduce air pollution by more than 50%.
Only the airlines concerned with saving the planet take the trouble to use biofuels in their jets. The first of these companies was Lufthansa. Lufthansa airlines started adapting their airplanes in 2011, and the early testing was done in 2014. The other airlines that use biodiesel as fuel include Scandinavian Airlines, Virgin Australia, Virgin Atlantic, AZUL Airlines, and British Airways.
Space exploration
A privately funded startup company called Blueshift has recently managed to launch its first rocket-powered biofuel. This rocket, called Stardust, can carry up to 9 kilograms of load into the inner atmosphere. The first launch of Stardust 1.0 carried this rocket up to 1,220 meters, and then it parachuted back to earth. This is the first generation of rockets that are powered by biofuel. This experiment proved that using biofuel is less expensive than regular rocket fuel. It also creates much less pollution and is entirely environmentally friendly.
Generators
The inventor of electricity generators initially intended them to run on peanut oil. Therefore, it is only natural that several companies manufacture residential and commercial-sized generators to work with biodiesel. One such company is JSPower, which sells different models and sizes of biodiesel-fueled generators in the UK and Europe.
Another industrial-sized generator that has its own sugar plantation and produces 120 megawatts of electricity is Himoinsa. The plantation fields in this company produce 256,000 tons of sugar and 30 million tons of ethanol annually. The electricity produced using this amount of sugar and ethanol currently powers 440 thousand families in Angola. Other than Angola, Himoinsa also has 13 subsidiaries and eight production centers worldwide.
Which companies are the biggest producers of biofuel?
Alto Ingredients (PEIX)
Alto Ingredients, formerly known as Pacific Ethanol, is one of the biggest companies specializing in different types of industrial and edible alcohol. The ethanol produced in this company is made of corn and has lower carbon content than other fuel types. This company was founded in 2003 and is based in California, USA. Currently, Alto Ingredients has eight ethanol production facilities in the state of California.
Aemetis, Inc. (AMTX)
Aemetis is a biochemical company that is based in California. This company specializes in making renewable fuels and bio-chemicals. Aemetis was founded in 2005 and had 54.32 million dollars. The price gain for this company over the last year up to 2020 has been 200%.
Renewable Energy Group, Inc (REGI)
Renewable Energy Group is an international company that provides lower-carbon transportation fuels. Using cutting-edge technology, Renewable Energy Group converts natural fats, oils, and greases into biofuel. In 2019, Renewable Energy Group produced 495 million gallons of biofuel and reduced carbon emissions by 4.2 million metric tons. The stock for this company is currently sold for $98.68 per share. However, analysts believe that this price will grow by more than 63% in the next year.
How large is the market for biofuels?
The market for biofuels was about 141.42 billion dollars in 2020. However, this market is expected to grow to be worth 307.01 billion dollars by 2030. This means that the biofuel market will grow by more than 8% in ten years.
This growth is mostly because of the increase in demand for environmentally friendly fuel for road and air transportation, factories, and residential electricity generation. Moreover, the easy availability of ethanol and biodiesel in some parts of the world makes it easier for companies to produce biofuel efficiently and deliver it to consumers.
