Biofuel sector--early adopters needed

(Picture Credit: EMA)

The biofuel sector may still be in its developmental stages, but it has large potential for growth for early adopters of the alternative fuel, according to the Managing Director of Greenpower Fuels, William Byun.

Speaking at the Downstream Asia conference, held as part of the Singapore International Energy Week, Byun outlined the recent developments in the biofuel sector and cited ways in which refineries can include this alternative fuel into their business plans.

The biofuel sector has evolved rapidly since its beginnings. In essence, sources of biofuels have moved away from traditional crops--such as rice and corn--towards more sustainable feedstock. Algal biofuel--or biofuel made from algae--has the highest energy yield and can be grown independently away from agricultural areas. Upon commercialisation, Algal biofuel has the most potential to change the trajectory of biofuels in the renewable energy space, said Byun.

While the uptake of renewable energy has been below expectations, the hype surrounding biofuels has led to more governments including biofuels into their national energy mix. As there is currently more demand than supply for the energy source, investment in the biofuel sector has grown rapidly the last few years.

Mr Byun ended his speech by listing several strategies that refineries can take to benefit from the growth of biofuels, if such action is aligned with the company's objectives and goals. An active approach would be to be an early adopter and start investing in the required technology and infrastructure now, and a passive strategy would be to adopt a 'Business as Usual' approach until the technology is proven.

By :Andrew Seah, EMA