
Biofuels are liquid fuels produced from renewable biological sources, including plants, animal fat, and algae. The two most common types of biofuels are ethanol and biodiesel. Biofuels have been used for longer than cars, but cheap gasoline and diesel have kept them on the fringes. However, global efforts to reduce the worst effects of climate change have renewed interest in biofuels as a clean, renewable fuel source. In 2022, the US produced about 18.7 billion gallons of biofuels, with ethanol accounting for the largest share of production and consumption.
| Characteristics | Values |
|---|---|
| Definition | A fuel, generally in liquid form, produced from biomass |
| Common Types | Bioethanol, Biodiesel |
| Largest Producers | Bioethanol: Brazil; Biodiesel: EU |
| Energy Content | Bioethanol: 2.2 EJ/year; Biodiesel: 1.8 EJ/year |
| Feedstocks | Corn, Sugarcane, Animal Fat, Algae, Vegetable Oils, Waste Oils, Greases, etc. |
| US Production (2022) | Ethanol: 15.4 billion gallons; Biodiesel: 3.1 billion gallons |
| US Consumption (2022) | 17.6 billion gallons |
| US Exports (2022) | 1.0 billion gallons |
| US Tax Credit | $1.00 per gallon for biodiesel and renewable diesel fuel blenders |
| Global Demand Increase (2023-2024) | 11% |
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What You'll Learn
- Ethanol is a biofuel made from corn, sugarcane or cellulosic biomass
- Biodiesel is another common biofuel, made from vegetable oils and animal fats
- Biofuel production increased in the US from the 1980s due to government policies
- Biofuels are used for transport, heating and electricity generation
- Biofuel use is expected to increase, but it may require more cropland and irrigation

Ethanol is a biofuel made from corn, sugarcane or cellulosic biomass
Biofuels are liquid fuels produced from renewable biological sources, including plants, animal fat, and algae. Ethanol and biodiesel are the two most common types of biofuels in use today. Ethanol, in particular, is a renewable fuel that can be made from various plant materials, collectively known as "biomass". It is an alcohol that is often blended with gasoline to increase octane and reduce carbon monoxide and other smog-causing emissions.
In the United States, ethanol is primarily made from corn starch, while Brazil, the world's second-largest consumer of ethanol, uses sugarcane. Nearly all motor gasoline sold in the United States contains about 10% ethanol, known as E10, which can be used in most conventional gasoline-powered vehicles. Some vehicles, called flexible fuel vehicles, can even run on E85, a blend containing 51-83% ethanol.
The production of ethanol from corn has faced criticism due to its relatively small energy gain compared to other sources. Growing corn requires fossil fuels for farming equipment, fertilizer manufacturing, transportation, and ethanol distillation. As a result, ethanol derived from sugarcane offers a greater energy gain, and cellulosic ethanol, made from low-value biomass like wood chips, crop residues, and municipal waste, may offer an even greater energy gain.
Cellulosic ethanol is considered an advanced biofuel and has the potential to significantly reduce greenhouse gas emissions. However, as of 2022, there was no commercial production of cellulosic ethanol in the United States due to economic disadvantages for producers. Nevertheless, the global demand for biofuels is expected to increase by 11% from 2023 to 2024, and the U.S. government continues to promote the use of biofuels through various programs and incentives.
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Biodiesel is another common biofuel, made from vegetable oils and animal fats
Biofuels are liquid fuels produced from renewable biological sources, including plants, animal fats, and algae. Ethanol and biodiesel are the two most common types of biofuels in use today. Biodiesel is a mixture of fatty acids alkyl esters that can be used as a substitute for fossil diesel. It is produced by transesterification, a process that converts fats and oils into biodiesel and glycerin. The process involves reacting approximately 100 pounds of oil or fat with 10 pounds of a short-chain alcohol and a catalyst to form 100 pounds of biodiesel and 10 pounds of glycerin.
Biodiesel can be produced from vegetable oils, such as rapeseed, palm, soybean, coconut, peanut, sunflower, mustard, jojoba, flax, and hemp oils. However, the use of edible vegetable oils in biodiesel production raises ethical and sustainability concerns, as it competes with food production for arable land, water, and fertilizer. Therefore, waste vegetable oils, such as used cooking oils, are also used in biodiesel production.
Animal fats, such as tallow, lard, yellow grease, chicken fat, and by-products of Omega-3 fatty acid production, can be used to produce biodiesel. Biodiesel produced from animal fats has lower nitrogen oxide (NOx) emission levels compared to vegetable oil-based biodiesel. Additionally, the use of animal by-products adds value to the livestock industry. However, the current production of vegetable oil and animal fat is not sufficient to replace liquid fossil fuel use.
Algae is another feedstock for biodiesel production. It can be grown on non-arable land, such as deserts or marine environments, and has higher potential oil yields compared to plants. For example, oil from halophytes, such as Salicornia bigelovii, can be grown using saltwater in coastal areas, with yields similar to soybeans and other oilseeds grown with freshwater irrigation.
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Biofuel production increased in the US from the 1980s due to government policies
Biofuels are liquid fuels produced from biomass feedstocks, such as renewable biological sources like plants, animal fat, and algae. Ethanol and biodiesel are the most common types of biofuels in use today, with ethanol being the most produced and used biofuel in the US.
Biofuel production and consumption in the US have been increasing annually since the early 1980s, largely due to government policies and programs aimed at reducing fossil-fuel-based transportation fuels and promoting or requiring the use of biofuels. The US government's focus on reducing dependence on foreign oil, lowering greenhouse gas emissions, and increasing rural incomes influenced this shift.
One significant factor contributing to the increase in biofuel production and consumption was the Volumetric Ethanol Excise Tax Credit implemented from 2005 to 2011. This policy provided a tax credit for blending ethanol into motor gasoline, leading to a substantial rise in ethanol consumption. Similarly, the current tax credit of $1.00 per gallon for biodiesel and renewable diesel fuel blenders is also encouraging the use of biofuels.
In addition to tax incentives, the federal Renewable Fuel Standard (RFS) Program and California's Low Carbon Fuel Standard (LCFS) have played pivotal roles in boosting biofuel production and consumption over the past 15 years. Oregon and Washington have also joined the clean fuel initiative with their respective programs. These programs reflect a broader trend of government policies promoting renewable energy alternatives and addressing concerns related to energy independence, agricultural surpluses, and climate change.
The production and use of biofuels in the US have had both positive and unintended effects. While biofuels have the potential to reduce greenhouse gas emissions and increase rural incomes, they have also impacted the mix of crops planted, affecting the global food system. As corn is a staple food and feed crop, the shift towards corn-based ethanol has had consequences on agricultural production and food prices.
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Biofuels are used for transport, heating and electricity generation
Biofuels are renewable fuels made from plant materials, collectively known as biomass. Ethanol and biodiesel are the two most common types of biofuels in use today. Biomass can be converted directly into liquid biofuels to help meet transportation fuel needs.
Biofuels are used for transport by blending with petroleum gasoline or diesel. Ethanol is the most common biofuel used for this purpose, with about 97% of gasoline in the United States containing some ethanol. It is used as a blending agent with gasoline to increase octane and reduce carbon monoxide and other smog-causing emissions. The most common blend is E10 (10% ethanol and 90% gasoline), which is approved for use in most conventional gasoline-powered vehicles. Some vehicles, called flexible fuel vehicles, can run on E85, which contains 51-83% ethanol. Biodiesel is usually blended with petroleum diesel fuel and can be combined in any percentage, with B20 being the most common blend. Renewable diesel is chemically similar to petroleum diesel fuel and can be used as a drop-in fuel without blending.
Biofuels are also used for heating. Renewable heating oil is an example of a biofuel used for this purpose. Additionally, biofuels can be used for electricity generation through processes such as pyrolysis and gasification of biomass. During pyrolysis, biomass is heated rapidly at high temperatures in an oxygen-free environment, breaking down into pyrolysis vapour, gas, and char. The vapours are then cooled and condensed into a liquid "bio-crude" oil. Gasification involves exposing biomass to high temperatures with some oxygen present to produce synthesis gas or syngas, which consists mostly of carbon monoxide and hydrogen.
In 2022, about 18.7 billion gallons of biofuels were produced in the United States, with about 17.6 billion gallons consumed. Biofuels play an important role in meeting transportation, heating, and electricity generation needs while offering potential environmental benefits, such as reducing carbon monoxide emissions when blended with gasoline.
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Biofuel use is expected to increase, but it may require more cropland and irrigation
Biofuels are liquid fuels produced from biomass materials, including renewable biological sources like plants, animal fat, and algae. The two most common types of biofuels are ethanol and biodiesel. Biofuels are primarily used for transportation, but they may also be used for heating and electricity generation. In 2022, about 18.7 billion gallons of biofuels were produced globally, with the United States contributing significantly to this production.
Biofuel use has been increasing due to various government policies and programs aimed at reducing fossil fuel consumption in the transportation sector. The global demand for biofuels is expected to increase by 11% from 2023 to 2024. This growing demand for biofuels may require a significant increase in cropland and irrigation. Currently, about 8% of global crop land is used for biofuel production, and this percentage is predicted to rise from 2.5% to 6% by 2050.
The amount of cropland required for biofuel production varies depending on the type of crop and the region. For example, in 2015, the United States used 5.25 billion bushels of corn for ethanol production, while other feedstocks for biodiesel include soybean oil, canola oil, and corn oil. The production of biofuel crops can impact food prices and availability, as it reduces the land available for food production. Additionally, the conversion of native ecosystems, such as rainforests and peatlands, for biofuel crop production can result in significant greenhouse gas emissions.
The water intensity of biofuels is generally higher compared to fossil fuels. It takes approximately 2,500 litres of water to produce 1 litre of liquid biofuel. The share of irrigation water used for biofuel production varies by region, with Brazil and the European Union having negligible shares, while China and the United States have higher shares at 2% and 3%, respectively. As the world faces a water crisis, with two-thirds of the population experiencing water scarcity, the additional water requirements for biofuel production need to be carefully considered.
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Frequently asked questions
Biofuels are liquid or gaseous fuels produced from biomass materials, such as plants, animal fat, and algae.
The two most common types of biofuels are ethanol and biodiesel.
In 2022, about 18.7 billion gallons of biofuels were produced in the United States, with about 17.6 billion gallons consumed. Biofuels accounted for 4% of the global transportation sector's oil demand in 2022.
Biofuels have the potential to reduce greenhouse gas emissions and air pollution associated with transportation. They can also help reduce dependence on fossil fuels.
The production of biofuels can require significant increases in cropland area and irrigation water use, and affect food prices. Additionally, the environmental benefits of certain biofuels, such as corn ethanol, have been debated due to the energy-intensive processes involved in their production.











































