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Fuel flexibility: Greater demand for renewable fuels
An overview investigates second-generation fuels including biofuels. Where will renewable and alternative fuels become increasingly important? Shell is committed to reducing CO₂levels and developing new technology.
The global market for biofuels is expected to grow significantly in the coming decades. Most analysts are predicting particularly strong growth fostered by second-generation biofuels. For example, let’s consider the US transportation fuels market. The US Department of Energy recently committed itself to increasing the use of renewable and alternative fuels in the transportation sector by the equivalent of 135 billion litres of ethanol per year by 2017. And, in February 2007, EU energy ministers agreed to increase the share of biofuels used in road transport to 10% by 2020.
Recent investment decisions by Shell have revealed much about the company’s attitude on biofuel developments.
“We take this issue very seriously,” says Lionel Clarke of Shell Global Solutions’ Biodomain Group. “And we’re committed to leading the way when it comes to the sustainable development of fuel technology. In fact, Shell has been distributing first-generation biofuels for more than 30 years. In 2006, Shell sold over 3.5 billion litres—primarily in the US and Brazil—enough to avoid over 3.5 million tonnes of carbon dioxide (CO₂) production.”
“We’re committed to the continuing development of this side of the business. Shell is strongly focused on crucial emerging second-generation biofuels—those produced from non-food feedstocks such as residues from agriculture and forestry.”