There is no going back: All companies are now under pressure to shrink their carbon footprints. Many companies are publicly setting goals in a signal to customers—and investors—that they are not only aware of the environmental and business risks that come from our changing climate but are actively taking steps to address them.
The path to decarbonization requires finding creative ways to keep transportation moving, but with less consumption of traditional fossil fuels. From diesel-powered trucks and heavy equipment to the jet fuel used in aircrafts, companies are looking for more sustainable ways to produce the fuels needed to keep our society moving and working. This is where the latest generation of biofuels come in.
Consider Oakland, California—a city vying to be the lowest-carbon metro area in the U.S. by 2045. Working with Finland-based sustainable fuel provider Neste and Western States Oil, the city is now running its fleet of garbage trucks, street sweepers and other heavy vehicles and generators almost entirely on fuel produced from waste grease and fats from local restaurants.
In this process, Oakland is not only slashing carbon emissions and improving air quality for residents by replacing diesel, but also burning up waste that otherwise ends up in landfills or sewage. It’s a great example of how the circular economy can work—and, according to Oakland mayor Libby Schaaf, it works for the budget too.
The idea of biofuels is not new. These products have been produced for at least two decades, but in the drive for climate solutions, the technology behind it has been changing and advancing.
Biofuels are made from agricultural waste, as well as traditional food crops grown specifically as fuel feedstock—particularly corn and soybean—and chiefly produced by major agricultural companies. These products have been blended with petroleum fuels, lowering CO2 emissions from combustion. While this first-generation biofuel provided an opportunity to learn how to evolve transportation fuel sources, ethanol had its detractors as engine damage was sometimes accelerated.
“Switching to renewable diesel does not cost any money,” Oakland mayor Libby Schaaf says. “Not switching to renewable diesel costs us in both climate change and excess emissions. It is the best investment any business or city could make.”
The new generation of feedstock for renewable biofuel runs the gamut from vegetable oils to algae to yak fat. Using agricultural byproducts, food and yard wastes—such as potato skins and tree bark—as well as organic commercial waste helps reduce refuse. What’s more, it avoids diverting valuable farmland and water from producing food, addressing a primary challenge for the industry. Ultimately, the objective is to obtain the highest equivalent carbon intensity yield from processing, which delivers more value.
Using a different treatment process from that used to make traditional ethanol and biodiesel, biofuels producers like Neste are producing next-generation renewable diesel from non-fossil fuel sources, yet delivering chemically identical jet fuel and diesel products. That means there is no need to blend with petroleum products; they can simply be burned as “drop-in” fuels for existing internal combustion or jet engines, without sulphates or harmful aromatics. In fact, Neste identified a 90% emissions savings when going from 100% fossil-based diesel to 100% renewable diesel.
These advances that make biofuels cleaner-burning and more adaptable, combined with evolving regulatory pressures and shifting consumer expectations around the world, are driving a rapid expansion in the industry. Worldwide, capacity for renewable diesel is expected to reach 4.3 billion gallons per year by 2024, up from around 600 million gallons in 2017.
Scaling up renewable fuels faces some unique challenges, including putting in place a steady and consistent supply of feedstock, which is where Western States Oil was instrumental in Oakland’s adoption of renewable fuel. The process of refining the feedstock must be both flexible, accounting for variations in the raw materials, and highly precise, ensuring the fuel operates as expected in diesel engines. And, critically, the refining process must also be sustainable and operate without increasing emissions.
All these factors mean renewable fuels currently rely heavily on governmental incentives such as tax credits to make a profit.
Putting the right technology in place can make a significant difference to company profits, as well as helping to meet greenhouse gas reduction targets.
And that is where Emerson comes in. It is a leading partner in developing the biofuels industry, using automation and other leading-edge technologies to bolster precision and efficiency, and generate accurate reporting, such as:
Putting the right technology in place can make a significant difference to company profits, as well as helping to meet greenhouse gas reduction targets. In Emerson’s role within the digital transformation of Neste’s renewable biofuels refinery in Singapore, for instance, its automation systems and software are continuing to increase production of up to 1.3 million tons a year by 2023.
Demand for sustainability is here to stay. Biofuels, though still dwarfed by the fossil fuels that have dominated for a century, are increasingly adaptable and competitive in a world where the race is on to reduce greenhouse gas emissions.
Demand for renewable fuels and other sustainable products will only increase as individuals and governments press for better alternatives. And it makes good business sense: the regulatory landscape is fast changing to drive climate-friendly approaches. Companies that start the transformation sooner, rather than later, will be resilient and competitive in the evolving market.
