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Biofuels

Biofuels produced from biomass such as plants could help reduce both the world’s dependence on oil and CO2 production. Shell is one of the world’s largest distributors of biofuels. We are working to develop next-generation biofuels that offer less CO2 production.

What are biofuels?

Biofuels are produced from biomass, which means recently living organisms - usually plants. There is global interest in liquid biofuels for transport because demand for mobility is rising fast and, in the long term, oil - the traditional raw material - will be in shrinking supply.

Biofuels also offer the potential to slow the rate of growth in the world’s CO2 production. When used in vehicles, they emit similar amounts of CO2 as oil-based fuels but the biomass they are made from has recently absorbed CO2 from the air, during growth. In theory, this leaves the carbon balance neutral.

However, the actual CO2 reduction achieved by a biofuel depends on the journey it has taken. Energy is needed to grow and harvest raw materials, convert them into biofuels and then distribute them. Each biofuel can take a different path.

First-generation biofuels

Today’s most widespread biofuel, ethanol, is commonly made from starchy or sugary plants.

When choosing raw material for biofuels, people have looked first to plants that can be grown regularly in large quantities. Today’s most widespread biofuel, ethanol, is commonly made from crops of sugar cane, corn or wheat. The second most widespread type of biofuel is often made from rapeseed, palm oil or soya beans and is known as FAME (fatty acid methyl esters). For technical reasons, today’s standard vehicle engines can only use fuel with small amounts of ethanol or FAME blended in (5-10%).

Shell currently buys, trades, stores, blends and distributes these conventional biofuels. We are the world’s largest distributor – more than 5 billion litres in 2007 – and continue to build our capability.

Sustainability

A number of issues are linked with today's increasing production of conventional biofuels - particularly how the land is brought into cultivation for this relatively new purpose. Clearly, social and environmental safeguards are needed as well as an agreed way of measuring each biofuel’s overall CO2 production.

Managing these issues is critical, so Shell introduced a sustainable sourcing policy in 2007. It is a complex challenge but we are working closely with our suppliers, pressing for CO2 reduction and social and environmental safeguards. More widely, Shell is playing an active role with non-governmental organisations (NGOs) and governments in helping to shape emerging international standards.

Download the Shell Policy Statement on the Sustainable Sourcing of Biofuel Components (pdf, size 53 kB) - opens in new window

Next-generation biofuels

Even with these new standards, one constraint on the potential of conventional biofuels is that they use food crops. If biofuel production is to scale-up to help meet growing transport fuel demand then non-food raw materials need to be developed. This means looking at new feedstocks and new processes and fuels beyond ethanol and FAME.

Shell is a leader in this research and development of next-generation biofuels. Our technology division, Shell Global Solutions, has a dedicated bio-team working at several centres around the world and we have forged a number of partnerships, both academic and commercial, to accelerate our work. Our aim is to narrow down the technology options to a feasible set of commercial solutions.

Just two examples of this programme are our collaborations with Iogen and Choren:

With Canadian company Iogen, we are working to develop the fuel ethanol from wheat straw. The partnership began in 2002; the first commercial demonstration plant opened in Ottawa in 2004; and design and feasibility of a full-scale commercial plant are now being assessed.

With German company Choren we are working to develop a new, high-performance fuel from wood residue, called BTL. The partnership began in 2005 and the first commercial demonstration plant is planned to open in Freiberg in 2008.