Biofuels: demand falls after two decades

With the pandemic, demand for biofuels in 2020 fell for the first time in 20 years. One of the factors that caused this decrease was the significant drop in the price of oil in recent months, driven by the pandemic. The price of biofuels is not competitive in this scenario of cheapie fossil fuels.

According to the International Energy Agency (IEA), the production of biofuels for transport in 2020 will fall by 11.6% compared to the previous year. In addition, the use of biofuels showed the greatest decrease among renewable energy sources.
With the pandemic, the price of oil collapsed. Since March this year, the barrel of Brent crude oil has been no more than $50, while a barrel of biodiesel has stood at approximately $70, according to French agro-industrial group Avril.

Biofuels have the environmental advantage, but depend on several factors for their growth in the market. In addition to unequal prices, one problem is that the first generation of biofuels, produced with beets, corn or wheat, takes significant amounts of food from the food base of many countries. In addition, the sector also depends on increasing the level of use of biofuels in gas stations.

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