How can Europe develop a market for advanced renewable fuels?

The report analyzes the European market for advanced renewable fuels (RESfuels) along the entire value chain, “from biomass availability, through conversion technologies, considerations related to sustainability and market analysis and end use”. After exploring the barriers for RESfuels, it provides tools, standards and recommendations to overcome these. Some main findings and recommendations are summarized below:

• “The high price of lignocellulosic feedstocks and alack of clarity regarding environmental constraints are viewed as significant barriers”.

• Sustainable biomass is available in Europe but mobilisation remains a challenge. Other issues includetraining for farmersand financial support for RD&D.
• The main barrier for the use of RESfuels is their high overall costs.
• In fact, although conversion technologies with TRL 9 are available, they are not yet competitive due to thelower cost of fossil fuels.
• The sustainability criteria in RED II isstill not sufficient to ensure the overall sustainability of advanced fuels. In particular, there “are not yet sufficient sustainability criteria for forestry management, or social and economic impacts”.Furthermore, harmonised sustainability criteria could increase the market trust in the sustainability of bio-based products.
• Although there has been an increase in the shares of RESfuels in road transport, similar shifts are necessary in the other transport sectors, especially in maritime and aviation. This requires tailored targets for these sectors and new interventions along the entire value chain. This would also increase investor confidence.

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