According to a recent report from Rystad Energy, six major oil companies have announced a total of 43 biofuel projects that are either already operational or are expected to be online by 2030. These new and ongoing projects are focused on hydrotreated vegetable oil (HVO) and sustainable aviation fuel (SAF), but some also span to biodiesel and ethanol. Some of the companies working on these projects include BP, Chevron, Shell, TotalEnergies, ExxonMobil and Eni.
Rystad’s analysis estimates that these projects could add a combined 286,000 barrels per day of production capacity. Of the 43 total projects, 31 are greenfield developments, six involve co-processing (when bio feedstocks are integrated into existing crude-oil refineries to produce a blended feedstock), and six are full conversions of refineries to become fully dedicated to biofuel production.
Lars Klesse, a bioenergy analyst at Rystad Energy, said, “Supermajors are accelerating investments in biofuels like HVO and SAF, recognizing their potential as low carbon ‘drop-in’ fuels that can be swiftly integrated into existing aviation, heavy transport and marine fuel systems. As the energy transition progresses, these biofuels offer a practical, near-term solution to reduce emissions without requiring significant changes to current infrastructure.”
Kleese noted with increasing regulatory pressure to adopt SAF, such as Europe’s ReFuel EU initiative and expanding mandates in Asia Pacific, “biofuels have shifted from being a potential option to becoming an essential component of decarbonization strategies.”