Despite some project delays, biofuels are seeing a “significant” increase in investment and innovation as 2030 decarbonisation targets loom and the market for fossil fuel alternatives grows, says the research firm.
Under increasing pressure to decarbonise and shift away from traditional fossil fuels, the world’s leading oil and gas companies are ramping up investments in the biofuels sector, say Rystad Energy analysts Lars Klesse and Kartik Selvaraju.
As oil majors shift to lower-carbon energy, there is a “clear trend” toward “advanced” biofuels, particularly hydrotreated vegetable oil (HVO) and sustainable aviation fuel (SAF), say the analysts in a Nov 20 note. “Companies [are] scaling up production to meet rising demand from the aviation and heavy transport sectors.”
