Global demand for biofuels could grow by almost 30% this year

The current scramble for biofuel feedstock amid high oil prices could see global biofuel consumption grow by 30% this year and a staggering 70% by 2030, according to new research from T&E.

This could put serious pressure on global food prices, as oil prices have already peaked after 2022. Prices for most food commodities, especially oil, have been rising for three straight months, repeating a trend seen since the start of the Russia-Ukraine war in 2022.

At the same time, exporting nations such as Brazil and Indonesia are restricting exports of key crops for biofuels. With agricultural production expected to decline due to fertilizer shortages, global food supplies are at risk of rapidly depleting.

Biofuel production already accounts for 5% of global fertilizer, but biofuels account for only 4% of global fuel turnover. Any increase in biofuel production will create additional pressure on a market that has been severely affected by the blockade of the Strait of Hormuz.

Tags: biofuel