As industries reduce their reliance on fossil fuels, biofuel energy is becoming an increasingly important part of renewable transport and industrial energy strategies. According to the International Energy Agency, renewable energy use in transport is expected to grow by 50% by 2030, with road biofuels accounting for around 35% of that growth.
From ethanol and biodiesel to advanced fuels, businesses now have a growing range of renewable options. For companies entering or expanding within this market, choosing the right feedstock, product specification, and sourcing partner is critical. Nedstar combines ethanol expertise, a global producer network, and robust logistics to help businesses secure reliable biofuel and biochemical solutions.
Explore how biofuel is made, the main feedstocks and applications, and how ethanol and biochemicals contribute to modern biofuel production.
What is biofuel energy?
Biofuel energy is energy derived from renewable biological materials, commonly known as biomass. Biofuel itself is renewable because it can be produced from crops, agricultural residues, forest residues, used cooking oil, animal fats and other forms of organic matter.
Unlike fossil fuels, biomass can be replenished, which makes biofuel part of the broader renewable energy mix alongside solar power and wind power. However, the environmental benefits depend heavily on the feedstock, production process, land use, and resulting greenhouse gas emissions.
What is biofuel made of?
The primary source used to produce biofuels depends on the fuel type and production technology. Feedstocks range from food crops and vegetable oils to agricultural residues and waste materials.
First-generation biofuels and food crops
First-generation biofuels are biofuels produced from feedstocks that are primarily food crops or crops specifically grown for fuel production. The main types of first-generation biofuels include:
- Corn;
- Wheat,
- Sugar cane;
- Sugar beet;
- Palm oil and rapeseed oil.
These feedstocks support established large-scale production, but they can also create concerns around agricultural land, arable land, food production, and food prices when fuel production competes directly with the need to grow food.
For buyers, feedstock selection therefore affects not only product availability but also sustainability credentials and regulatory requirements.
Second generation biofuels
Second generation biofuels are produced from non-food biomass such as forest residues, agricultural waste, wood chips, and other lignocellulosic materials.
Cellulosic ethanol is one example. Instead of relying primarily on food crops, the production process converts cellulose and hemicellulose into fermentable sugars that can then be used to produce ethanol.
Nedstar supplies second-generation bioethanol for businesses looking to incorporate non-food feedstocks into renewable fuel supply chains.
How is biofuel made?
The biofuel production process varies by feedstock and final product. Ethanol, biodiesel (or biofuel oil), and renewable diesel all require different conversion technologies.
Feedstock preparation
Raw materials are collected and prepared for conversion. Grain feedstocks may be milled, while lignocellulosic biomass often requires pretreatment to make structural carbohydrates more accessible.
Conversion
To produce ethanol, starches or cellulose are converted into sugars before fermentation. Yeast then transforms the sugars into ethyl alcohol and carbon dioxide.
Biodiesel is produced differently. Oils such as rapeseed oil, used cooking oil or animal fats are generally converted through transesterification, a chemical process that converts one ester to another as it reacts with an alcohol.
Renewable diesel follows a separate refining pathway and is chemically more similar to petroleum diesel because it consists of similar hydrocarbon molecules, allowing it to perform like conventional diesel in existing engines.
Purification and finishing
The resulting fuel is refined to meet the required specification. Bioethanol is commonly distilled and may be dehydrated for fuel blending, while biodiesel and renewable diesel undergo further purification before commercial use.
For Nedstar customers, choosing the right biofuel grade involves balancing technical performance, feedstock origin, certification, and destination-market requirements.
What are the pros and cons of biofuels?
When assessing whether biofuels are suitable for your energy or transport requirements, it is important to consider both the advantages of biofuel and practical limitations.
Pros
Cons
The role of ethanol and biochemicals in biofuel production
Ethanol is one of the most established liquid biofuels worldwide. It is commonly produced from sugar or starch-rich biomass and blended with petrol for road transport.
Biochemicals can add another dimension to the renewable value chain. Bio-based alcohols and chemical intermediates can serve as building blocks for fuels, additives and downstream renewable products.
Nedstar supports these applications with ethanol and biochemical solutions tailored to high-compliance supply chains, including second-generation bioethanol and bio-based isobutanol.
What is biofuel energy used for?
Biofuel energy is used across transport, aviation, shipping, and selected industrial energy applications as a renewable alternative to fossil fuels. Different biofuels offer specific advantages depending on the sector, fuel infrastructure and sustainability requirements.
Road transport
In the UK, around 3.8 billion litres equivalent of verified renewable fuel were supplied in 2024, with biodiesel accounting for a substantial share. Globally, biofuels represented 5.6% of liquid transport fuel demand in 2023, a proportion the IEA expects to reach 6.4% by 2030.
Aviation
Ethanol can be converted into sustainable aviation fuel through the approved Alcohol-to-Jet pathway. Although global SAF production represented only 0.53% of jet fuel use in 2024, the UK SAF Mandate requires SAF to rise from 2% of aviation fuel demand in 2025 to 10% by 2030, creating demand for scalable pathways such as Alcohol-to-Jet.
Marine transport
Biofuels such as biodiesel and HVO can reduce lifecycle emissions in shipping and may be used in existing marine engines with limited modifications. Under FuelEU Maritime, the EU requires the greenhouse gas intensity of energy used by large ships to fall by 2% from 2025, increasing to 80% by 2050.
Industrial energy
Certain forms of biomass, including wood pellets and wood residues, can be used in industrial heating and power generation. Bioenergy can therefore contribute to both liquid fuels and, in some cases, electricity generation. Drax Group, for example, converted a portion of its power generating stations from coal to sustainable biomass, providing 2.6GW of capacity, which is enough to power the equivalent of over 8 million homes with renewable electricity.
Environmental benefits and challenges of biofuels
The environmental impact of biofuels depends on the feedstock, production process, and overall supply chain. Understanding both the potential biofuel advantages and limitations can help businesses make more informed sourcing decisions.
|
Consideration |
Environmental benefits |
Potential challenges |
|
Greenhouse gas emissions |
Certain biofuel pathways can reduce lifecycle greenhouse gas emissions compared with fossil fuels. |
Emissions from farming, processing, transport, and land-use change can reduce overall savings. |
|
Feedstock use |
Second-generation biofuels can use agricultural residues, forest residues, and waste materials. |
First-generation biofuels may rely on food crops that compete for agricultural resources. |
|
Land use |
Waste-based feedstocks can reduce demand for additional arable land. |
Increased crop production may affect land availability and natural ecosystems. |
|
Resource efficiency |
Residues and organic waste can be converted into valuable renewable fuel. |
Feedstock availability and processing requirements vary considerably between pathways. |
|
Sustainable sourcing |
Certified and traceable supply chains can support environmental and compliance goals. |
Buyers need reliable documentation to verify feedstock origin, carbon intensity, and sustainability claims. |
For businesses, sustainable biofuel procurement requires careful consideration of feedstock traceability, lifecycle carbon emissions, certification and land-use impacts. Nedstar helps customers source sustainable ethanol and biochemicals with the documentation and supply-chain transparency needed to support these requirements.
What should businesses consider when sourcing biofuel energy?
Selecting the right biofuel energy solution requires more than comparing price or renewable content.
Key factors include:
- Feedstock: Determine whether the fuel uses food crops, waste materials or second-generation biomass.
- Carbon intensity: Review lifecycle greenhouse gas emissions and available supporting data.
- Certification: Confirm sustainability and regulatory requirements for the destination market.
- Quality: Ensure consistent product specifications across shipments.
- Supply: Evaluate production capacity and long-term availability.
- Logistics: Choose transport and storage solutions appropriate for the fuel and volume.
At Nedstar, we combine product expertise, global sourcing, and logistics capabilities to help customers secure ethanol and biochemicals that align with their commercial, technical and sustainability requirements.
