C-MACC Weekly “CRETER” (Climate etc.)
Biofuels are hitting the headlines – important but no panacea
- The future is bright for biofuels, but these fuels will not allow airlines to meet demand targets. The math around production does not work – inputs will fall short.
- Synthetic fuel is the longer-term solution, but the (renewable) power needs to make the fuel means that it will likely be experimental and small before the 2040s.
- Meanwhile, if you can make zero carbon biofuels the airlines will likely pay what it takes – this is good news for Gevo, Aemetis, and others if they can deliver.
- On the ground, while each fuel has its fan base, ammonia increasingly looks like the best option for longer-distance transport fuel, like shipping.
- Otherwise, we look at recycled polymer pricing, LNG and CCS, more on hydro and other renewable power, electrolyzer demand, and new energy employment.
See PDF below for all charts, tables and diagrams