Biofuels in the energy transition: bridging the gap between oil and gas and sustainable energy

Abstract

Biofuels are increasingly recognised as crucial to decarbonising hard-to-abate sectors, including automotive, aviation and maritime transport. As these sectors move beyond fossil fuels, biofuels present a viable pathway to reducing greenhouse gas emissions while ensuring energy security. This paper explores the strategic role of biofuels in the energy transition, focussing on their integration into the oil and gas (O&G) sector. Special attention is paid to advanced biofuels, which use second generation feedstocks such as agricultural residues and waste products, thus minimising competition with food production and promoting a clean circular economy in fuel production. The analysis examines significant developments in the O&G sector, such as implementing sustainable aviation fuel blending mandates and converting traditional refineries into biorefineries to produce biodiesel and renewable diesel. Leading companies, including Chevron, BP and Neste, are spearheading these initiatives, with projects such as Chevron’s Richmond facility serving as a model for the sector’s sustainable transformation. Despite these advances, the widespread adoption of biofuels faces challenges related to the availability and scalability of feedstock. This paper discusses how a collaborative approach between the oil and gas and agricultural sectors, supported by research, infrastructure and economies of scale investments, can overcome these barriers. The paper highlights the potential of biofuels to become a cornerstone of the oil and gas sector’s sustainable future.