20211014-IRENA-Advanced_biofuels_What_holds_them_back_92页_2mb

Advanced liquid biofuels face significant barriers to deployment despite their potential to reduce transport sector emissions. The main challenges are regulatory instability and a lack of clear, long-term policies, which create uncertainty for investments. Feedstock availability, infrastructure limitations, and high financing costs are also substantial barriers, with variations depending on the technology pathway.

Regulatory uncertainty remains the most critical barrier, with inconsistent policies and mandates causing delays and reduced investor confidence. Feedstock-related issues, such as supply chain logistics and price fluctuations, are more pronounced for lignocellulosic ethanol producers compared to those using hydroprocessed esters and fatty acids (HEFA). Market fragmentation and blending limits, especially in the US and EU, inhibit growth, while tax credits and technology-neutral mandates like those in California show more support.

Technology readiness is generally considered adequate for commercial deployment, but scaling challenges, particularly with algal biofuels, were not seen as significant barriers. Algal biofuels faced skepticism due to production costs and technical hurdles. Conversely, blending limits and competition from electric vehicles (EVs) were viewed as having negative short-term impacts on the biofuels industry.

Overall, policies need to provide stable frameworks and ambitious targets to encourage investments. Harmonizing sustainability certification and increasing public understanding could address some concerns. The key opportunities lie in advancing technology, securing sustainable feedstock supply, and strengthening policy support mechanisms.