The road ahead for biofuels is unclear despite close to half a billion euro in research investments according to special audit report published last week by the European Court of Auditors (ECA).
Biofuels could be an alternative to fossil fuels, the aim being to help reduce greenhouse gas emissions in the transport sector and improve the EU’s security of supply. For the 2014-2020 period, around €430 million in EU funding was allocated to research projects and the promotion of biofuels. But moving from initial laboratory research to the production phase can take at least a decade.
“Biofuels are meant to contribute to the EU’s climate-neutrality objectives and enhance its energy sovereignty,” said Nikolaos Milionis, the Greek ECA member in charge of the audit, at a virtual press conference (13 December). “With its current biofuels policy, however, the EU is driving without a map and runs the risk of not reaching its destination.”
This looks as criticism against EU policy makers. The lack of a consistent policy is rather the result of an increased awareness of the problems with biofuels which has justified changes in the policy. The policy focus has shifted from supporting problematic crop-based biofuels to promoting advanced and non-food-based biofuels. E-mobility has also developed much faster than previously thought.
New low-carbon liquid fuels are mostly seen as an alternative fuel in the aviation sector which is difficult to electrify. They can also become an affordable alternative to the electrification of the road sector during the transition to e-vehicles from vehicles with internal combustion engines.
“These new fuels should be seen as complementary to e-mobility, at least during the transition period. It would be a missed opportunity not to scale up their production and make them affordable on the market,” said John Cooper, the Director General of FuelsEurope, at a webinar in March 2022. He expected that they will account for up to 30 % of the fuels in the transport sector in the long term.
The ECA auditors are more pessimistic about the future of biofuels. The heavy bet on electric cars, combined with the planned end of new petrol and diesel cars by 2035, could mean that biofuels have no large-scale future in road transport in the EU.
The audit covers the period from 2014 up until May 2023 and is based on an extensive data collection, including visits to four EU member states (Germany, France, Romania, and Finland), an analysis of 22 biofuel projects, and a survey on financing and national biofuels policy which was filled in by all 27 members states.
The EU auditors point to three main issues that biofuels are facing: sustainability, biomass availability, and cost. Biofuels from feedstock that requires land to grow might lead to deforestation and adversely affect food production, biodiversity, soil and water. In 2021, most biofuels consumed in the EU were crop-based (mainly ethanol and biodiesel).
Biofuels are also more expensive than fossil fuels and not yet economically viable, according to the auditors. In addition, the availability of biomass limits the deployment of biofuels. The European Commission expected biofuels to increase energy independence. In reality, the EU still relies on third countries due to the rising demand for biomass over the years.
The majority of EU member states have not reached the targets set for the use of biofuels. As of May 2023, the Commission had not yet started infringement procedures against them, despite the targets being binding under the relevant directive.
ECA issued three recommendations: The Commission should provide more policy stability by preparing a long-term strategic approach; improve guidance on advanced biofuels categorisation and assess capping of feedstock; and improve data relevance and coherence, as well as transparency of reporting on achievement of targets. All recommendations were accepted by the Commission in its reply.
Without questioning the audit findings, the Commission says that EU’s biofuel policy has to be seen in the context of the broader strategy for the implementation of the European Green Deal. The main role of biofuels among other renewable and low carbon fuels is to replace fossil fuels in hard-to-decarbonise sectors, where electrification is not feasible such as heavy transport and industry.
A Commission spokesperson added that, crucially, the Commission is committed to ensuring the sustainability of biofuels.
Update: The Commission has initiated infringement procedures against all 27 Member States for failure to notify complete transposition measures of the Renewable Energy Directive by the deadline of 30 June 2021.
