Market Trends in Biofuel

Abstract

Biofuels, (ethanol and biodiesel primarily derived from corn, sugarcane and vegetable oils) are a growing area of renewable energy. For example, in the transport sector ethanol can be used in suitable internal combustion engines or blended with petrol while biodiesel can be used in diesel vehicles with little engine alteration. This study looked at biofuel supply and demand in a number of countries as it recovers from the 2019-2022 COVID-19 pandemic and found that demand fluctuated over this period since external factors which influence oil prices, have a greater effect on the smaller, and mostly newer, biofuel industry. Such fluctuations would happen with any major shift in energy resources but have been exacerbated by the pandemic and recent conflicts. While governments must evaluate the role of biofuels in energy security, food security and GHG objectives in a changing political and financial environment, there are countries where they can play a significant role in the energy supply. How Governments might look longer term to pave the way to a “new normal” energy base is discussed.