The Future of the Microbial-Based Drop-in Biofuel Commercialization

This chapter delves into the prospect of commercializing drop-in biofuels. Recognizing the need to transition away from fossil fuels to cleaner sources of energy, it highlights the significance of global goals for mitigating climate change and achieving sustainability targets. In this context, drop-in biofuels emerge as a promising solution. However, their commercialization has not yet reached maturity when compared to classical methods, such as hydrothermal liquefaction, mainly due to technological bottlenecks and especially due to economic feasibility. On the other hand, many companies are interested in the development of drop-in biofuels and are investing in new technical solutions, focusing on cost reduction. The chapter also details the importance of regulations and standardization to lower costs and establish a comprehensive value chain encompassing biofuel production, transportation, and commercialization. Notable advancements have been made in the aviation sector, such as the ASTM D7566 standard. Similarly, the transportation sector has made significant progress through initiatives like California’s Low Carbon Fuel Standard (LCFS). Policy and legislation are also detailed. Various policies have been implemented to incentivize biofuel usage across different levels, from production to distribution. Also, this chapter discusses commercialization policies, approaching subjects such as trade tariffs, storage and logistic guarantees, and international trade policies related to biofuel utilization. Examples of public policies include Brazil’s Proálcool and RENOVABIO programs, the United States Energy Policy Act and Energy Dependency Security Act, Canada’s Clean Fuel Regulation, and the European Union’s Renewable Energy Directive. Sustainability aspects are also considered during the discussion of new policies which could enhance the future commercialization of drop-in biofuels. Public acceptance is another key aspect to be taken into account when prospecting the future of biofuels. In this regard, three major obstacles (price, performance of biofuels, and understanding of their use) are detailed. Finally, the chapter briefly presents the current scenarios of drop-in biofuels suppliers, highlighting the current well-developed infrastructure for some biofuels (such as bioethanol and biodiesel) and the most recent advances for other sectors, such as aviation fuels.