Advanced biofuels - potential for cost reduction

(an IEA Bioenergy Task 41 report)

This project uses as its starting point a study on the costs of advanced biofuels carried out within the programme of work of the Sub-Group on Advanced Biofuels (SGAB) (under the European Commission’s Sustainable Transport Forum (STF)) and published in 2017. The report on this study reviewed data available on the current costs of producing a range of advanced biofuels, based on extensive contact with industry and other players active in the field. The aims of this project are to:

• Update and extend the SGAB study to provide estimates of the current costs of producing a selection of relevant advanced biofuels;
• Identify the scope for cost reduction for these advanced biofuels;
• Develop a model for likely cost reduction progress as deployment grows;
• Compare these costs and cost trajectories with likely trends in fossil fuel prices, and those of conventional biofuels.
• Examine the impact of policy measures, including carbon pricing, on the economic competitiveness of advanced biofuels.

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