Biofuels have long been touted as an alternative to fossil fuels, but the first generation came with a host of problems. Now a new wave of biofuels is hitting the market, and according to a report by the C.D. Howe Institute, it could help drive Canada's fast-growing green economy.
In the report, titled Scaling Up: The Promise and Perils of Canada's Biofuels Strategy, UBC Sauder School of Business Associate Professor Dr. Werner Antweiler argues that Canada is poised to become a leader in the global biofuels sector, both because of the country's large agricultural industry and its existing fuel infrastructure.
But it isn't a done deal: Dr. Antweiler argues the industry will only scale if corporate and government leaders effectively navigate the roadblocks.
Canadians already use biofuels every day. They are in most gasoline blends in the form of ethanol made from plants, such as corn and wheat, that are fermented to create ethanol from sugars. Similarly, biodiesel is blended with conventional diesel.
Now a new generation of biofuels which includes renewable diesel, sustainable aviation fuel, and renewable natural gas is emerging and entering commercialization.
Unlike their predecessors, the latest biofuels can be made from non-food crops, such as perennial grasses and fast-growing trees, as well as agricultural and forestry waste. And while renewable diesel may sound like biodiesel, they are distinctly different, especially since biodiesel is a "drop-in fuel" that is, it can be used wherever traditional diesel is found without any blending or engine conversion.
