Despite countries like the US rolling back climate-friendly policies, many countries around the world are doubling down on more sustainable energy sources. There is a growing recognition of the need to shift away from fossil fuels, and biofuels have an important role to play.
The use of biofuels has been steadily increasing since the beginning of this century and, interestingly, the US remains the world’s largest consumer of biofuels – a title it is expected to retain through to 2030.
How can biofuels be used in transport?
One of the reasons 2026 could be a big year for biofuels is due to its rising use in the transport sector. Research by the International Energy Agency (IEA) revealed that over the next five years, renewable energy use in transport is set to increase by 50 per cent.
While the biggest share of that increase comes from electric vehicles, road biofuels will account for 35 per cent of this uptick.
In addition, biomethane makes up a further ten per cent of this increase, highlighting how biofuels are being adopted more and more widely, particularly in sectors like maritime transport that are notoriously challenging to decarbonise.
Countries such as India, Malaysia, Brazil and Indonesia are predicted to be locations where biofuel use will increase dramatically between now and 2030, in part due to regulatory demands and in part due to rising fuel demand.
Canada and Europe are also expected to show strong growth in demand for biofuels in the coming years, where stricter regulations and greater support for biofuels at a policy level will combine to boost its use.
What other signs are there that biofuel use will grow this year?
Perhaps one of the most important indications that the biofuel sector is on the up is that major fossil fuel companies are turning to biofuel investments.
One of the most prominent is BP, which announced a partnership with Corteva at the beginning of January. The two companies will use Corteva’s technology along with BP’s integrated downstream capabilities to grow and deliver a range of biofuels through their joint venture: Etlas.
The goal is to produce 800 thousand tonnes of biofuel annually by the mid-2030s, which will be derived from the feedstock Etlas produces.
The intention is for Etlas to produce one million metric tonnes of feedstock per year from crops such as mustard, canola and sunflower. These will be grown on existing farmland in between the main food cropping seasons.
In addition to renewable diesel, the joint venture will also produce synthetic aviation fuel (SAF) from the biofuel crops. This is to meet the projected increase in demand for SAF.
In 2024, globally just one million tonnes of SAF was required. However, by the end of this decade that is expected to increase to ten million tonnes.
Are regional and national energy providers also adopting biofuels?
Yes, demand for biofuels from national energy suppliers also appears to be on the increase. For instance, in the US a subsidiary of National Grid plc operating in New York and Massachusetts is actively working to introduce more biogas to its network.
Speaking to Sustainability Magazine, the organisation’s director of policy and regulatory strategy Don Chahbazpour explained that the reliability of biogas, alongside its potential to be carbon negative depending on where it’s sourced from, is what makes it appealing.
What’s more, it can work with the existing energy infrastructure, which makes it a highly efficient way to decarbonise the state’s energy system.
New York is already seeing the benefit of biogas in action with its Newtown Creek wastewater facility. Here, wastewater sludge and food waste is converted into biomethane and then injected directly into the state’s energy grid.
It’s clear that there is strong demand for biofuels, whether they come in the form of biodiesel for vehicles and ships, SAF for planes or biomethane for the likes of heating and powering our homes.
With big players like BP announcing new biofuel collaborations, as well as large regional or national energy suppliers exploring how to use more biogas in their operations, it’s a sign that biofuel use is set to continue growing.
If you want to get ahead of the curve, start investing in biofuels now and explore how you could use either biogas or biodiesel in your operations. This could also protect you from volatility in fossil fuel markets given the instability in global politics as we move into 2026.
If you’re looking for any parts, like pressure vacuum relief valves, for biogas plants or production facilities, contact us to learn more about what we offer and how we can support your biofuel project.
