Biofuel production pathways: Navigating the route to a scaled-up, sustainable supply

Most of the reductions in CO2 emissions between now and 2030 will come from already available technologies, according to the International Energy Agency (IEA) [1]. Almost half of the necessary carbon emissions cuts needed across the subsequent 20 years, however, will require new or not yet fully developed technologies [1]. 

Biofuels are arguably one of the most impactful decarbonisation solutions hard-to-abate industries* have at their disposal today. For these fuels to play a key role in achieving society's net-zero 2050 targets and beyond, there is a need to pursue both established and new production pathways.  

Technological innovation is working to enable more sustainable, but harder-to-process feedstocks to be used for biofuel production. Innovation is also key in supporting the development of novel feedstocks; including crops which can be grown on degraded land; cover crops; recycled oils; and novel seeds.  

What is holding back biofuels progress? 

For biofuels to be accepted as part of the energy transition, they need to be more plentiful, they have to be produced sustainably and, ultimately, they must lead to significant reductions in CO2 emissions. As it stands, if we continue to only use the feedstocks predominantly found in the production of biofuels today, we will not be able to:  

1. meet the expected demand growth of biofuels required for net-zero targets; or  
2. avoid potentially negative consequences, such as crop-based feedstocks competing for fuel, or improper land use.  

Last year, we blended 9.5 billion litres of biofuels into Shell’s petrol and diesel worldwide, including around 3 billion litres of ethanol from our Brazilian joint venture Raizen [2]. Other established production pathways, such as hydroprocessed esters and fatty acids (HEFA) and renewable natural gas (RNG), are also being scaled, with these more mature technologies expected to drive the majority of biofuels production throughout the next decade. 

While feedstocks for biofuels produced using these technologies can be derived from a range of resources – including sugar cane, cow manure, organic waste, waste oils and residues, and sustainable vegetable oils – the reality is that most used today are crop-based.   

These are crops that contain oil, sugar or starch and are usually also grown for food. Though they help produce lower lifecycle carbon emissions than fossil-based fuels, without proper management and adequate feedstock diversity, they can also contribute to potentially negative impacts on society and the environment. 

Improving existing production pathways 

Research and innovation into novel feedstocks can lead to improvements in the sustainability of existing production pathways; these feedstocks include novel oil crops, catch and cover crops, intermediate crops, and crops able to be grown on degraded land.  

An example of this in action is Vision Bioenergy Oilseeds, our joint venture with S&W Seed Co., which aims to develop rotational crops, such as Camelina, as feedstock for biofuel production. Camelina not only has the potential to provide sustainable feedstocks but also protein for animal feed and helps generate social and environmental co-benefits, by diversifying farmers' income streams and reducing soil erosion. 

Alongside the waste oil recycling firm EcoOils, S&W Seed Co. will in turn supply a portion of the sustainable oil feedstocks to our HEFA Pernis plant, which Shell will then use to produce renewable diesel and sustainable aviation fuel (SAF).   

In my next article, I will outline the importance of feedstock diversity and some strategies we can leverage to promote the cultivation of more diverse feedstocks. However, while process improvements like this are invaluable, the major impact of technology innovation lies in the development of new production pathways that can use a more diverse range of feedstocks for biofuels production, specifically non-crop and waste-based feedstocks.  

Developing new production pathways 

More sustainable feedstocks do exist – they are often just more difficult to process. As a result, non-crop and waste-feedstocks require more advanced production technologies.  

Looking ahead to 2030 and beyond, Shell is working hard to develop and de-risk these new advanced biofuels technologies for the future. The production technologies utilise waste-based feedstocks, such as agricultural, forestry and municipal solid wastes; or feedstocks that do not compete with food and feed production.  

It is difficult to overstate just how important collaboration will be in the advancement of these new technologies. Take our work with sustainable fuels technology company LanzaJet, for example. To help develop the Alcohol-to-Jet (AtJ) production pathway – and therefore scale SAF more commercially – Shell has invested in LanzaJet, who are now building the first AtJ facility of its kind in Georgia.  

Once operational, the plant will be able to use any source of sustainable ethanol (including waste based) for jet fuel production, up to an annual capacity of 38 million litres. This SAF can be blended up to 50% with fossil jet fuel and can deliver more than a 70% reduction in greenhouse gas emissions on a lifecycle basis, compared with conventional fossil jet fuel – proving its decarbonisation potential [3].  

As we look further into the future, Shell is also assessing Power-to-Liquids technologies to produce e-fuels, leveraging our experience in the synthetic fuels space as operators of the world's largest gas-to-liquids plant: Pearl GTL.  

Balancing risk with reward 

With net-zero scenarios relying on material contributions from advanced technologies to process more sustainable feedstocks, there is a great demand for successful advancements in this space - but this is not without challenge. Innovation is risky by its very nature.  

Collaboration can help mitigate these risks, by sharing the burden among industry specialists that hold the same common goals. Likewise, the correct policy frameworks can mitigate this risk too, creating confidence in markets by helping to synchronise supply and demand, or through the provision of capital investment support.  

Finally, we cannot overlook the importance of feedstock diversity and adequate traceability and transparency throughout the supply chain – topics which I will touch on more in my next article. 

Sources 

[1] International Energy Agency. “Net Zero by 2050: A Roadmap for the Global Energy Sector.” May 2021.  

[2] Shell. “Shell and Raízen sign large cellulosic ethanol deal.” November 7, 2021.   

[3] LanzaJet. “LanzaJet welcomes new investor Shell.” April 6, 2021.   

* such as heavy duty transport (trucking, shipping, aviation) and heavy industry (cement, steel)