According to a new investigation into the real price of biofuels, biodiesel costs at least 70% more than petrol and diesel on the commodities market, according to the crop utilized. We urged the EU to discontinue mandated crop biofuel blending in order to relieve the strain on food and fuel prices.
In Europe, biofuels have continuously been more expensive than fossil fuels in past years. The price differential to fossil fuels is growing with recent price increases in many of the biomasses used for biofuels, such as vegetable oils, grains, spent cooking oil, and trans fats. For example, bioethanol produced in the EU costs twice as much as gasoline.
First-generation biofuels derived from food products are not encouraged for use in sustainability initiatives. They conflict with the food sector and can have a detrimental environmental impact when the production process is considered.
On the other hand, second-generation biofuels derived from forest residues, hay, and bio-sourced garbage have a place. As a result, IFPEN has conducted research on the intentional thermochemical utilization of biomass.
The biomass is combusted to produce a synthetic gas, which is a combination of carbon monoxide and hydrogen. Following purification, the Fischer Tropsch procedure converts this gas into artificial paraffin.
Unfortunately, the price of this biofuel appeared to be higher than that of kerosene derived from fossil sources. This additional cost varies depending on the raw material pricing, location, and connectivity with conversion facilities.