OIL COMPANIES ARE BETTING ON BIOFUELS, WITH MORE THAN 40 PROJECTS BY 2030, SAYS RYSTAD

Major oil companies like BP, ExxonMobil, Chevron, Shell, TotalEnergies, and Eni are heavily investing in biofuels, particularly sustainable aviation fuel (SAF), with 43 projects planned by 2030. SAF, derived from waste or organic crops, emits similar CO2 levels as kerosene but is less harmful as it avoids additional greenhouse gas emissions from oil extraction. With aviation responsible for 2% of global CO2 emissions, SAF provides a practical short-term emissions solution without requiring major infrastructure changes. BP leads with a projected capacity of 130,000 barrels per day. Strategic acquisitions, such as BP’s purchase of Bunge’s stake and Chevron’s Renewable Energy Group acquisition, strengthen their market presence. Government mandates, including the EU’s 2% SAF requirement by 2025 and U.S. targets to fully adopt SAF by 2050, are accelerating adoption despite higher costs.
Source: Nova Cana