Since the US and Israel started the war with Iran at the end of February, the price of oil has been volatile to say the least.
Due to the Strait of Hormuz, a key shipping route for not only fuel but also other commodities, being closed, global oil prices skyrocketed and even though they have started to retreat from their highs, they are still higher than they were at the start of this year.
But even if the price of oil were to fall tomorrow, the conflict has still demonstrated how vulnerable many economies are to fossil fuel shocks caused by events out of their control.
What have countries been doing to boost energy security?
Although not a quick fix, many countries have been focusing their attention on how to improve their own energy security by becoming less reliant on the import of fossil fuels like oil.
This looks different depending on where you are in the world, but the overarching theme is one of more nations exploring the options presented by renewable energy and alternative fuel sources, such as biofuels.
In the UK, there has been a continued focus on electrification and renewable energy production. The CSI Green Energy Index spiked sharply upwards in early March and has remained high ever since.
This index tracks the performance of producers of renewable energy, signalling that this sector is doing well and has held onto a reasonable proportion of the gains it made two months ago.
In addition, the UK is turning its attention to biofuels, particularly as a viable alternative to power industries such as shipping and aviation.
Why use biofuels for shipping and aviation?
Both shipping and aviation are transport sectors that are difficult to electrify, which means it’s important to find a viable alternative to fossil fuels, particularly in the face of the current geopolitical crisis.
Liquid biofuels are likely to play an important role in helping to decarbonise these sectors. In the current context, they could also be used to help introduce more supply stability for key air and shipping transport too.
However, even though demand for biofuels has continued to grow, it has not done so at the pace required for the decarbonisation of our transport systems. It remains to be seen whether this supply disruption and increase in the oil price will push stronger demand for biofuels.
Biofuels can be produced using not only agricultural crops like sugarcane, corn and rapeseed oil, but also used oil and food waste, which makes their production available to a much wider range of countries than those that produce fossil fuels.
Certain nations, such as Brazil, India and Thailand are already taking steps in the direction of using more biofuels for road transportation, for instance.
The World Bank noted that Brazil in particular has transitioned successfully to ethanol blended with gasoline for many vehicles within its transport sector, although the process of rolling out its widespread use began as far back as the 1970s.
Can biofuels be used to offset aviation fuel shortages?
Although no airlines in the UK are currently experiencing a shortage of jet fuel, there are concerns that this may occur later in the year if the conflict in Iran remains unresolved and the Strait of Hormuz does not reopen.
This has prompted the UK government to release a statement urging passengers not to cancel their flights over fears of a fuel shortage, while adding that it is working with the aviation industry to keep planes flying.
The UK’s biofuel infrastructure is not such that it can completely replace traditional aviation fuel in a matter of months. However, this could be one way to improve fuel security for airlines moving forward.
Naturally, this will involve more biofuels infrastructure needing to be constructed to help meet demand. Components, like vacuum relief valves, breather valves and liquid level gauges, will be required at scale in addition to finding suitable sites for biofuel plants.
There are various biofuel plants located around the country, including new ones that are under construction. Last November, Medway Council in Kent approved plans for a new biofuel plant on an industrial site in the county.
As well as providing biofuel once it is up and running, this particular project is expected to create around 200 jobs and revitalise the site on which it is located.
More such projects may get the green light from councils in the coming months if biofuel producers can demonstrate how their work will not only help bolster the UK’s energy security, but also create jobs and investment for local economies.
