More refineries switch to biofuel production as oil demand slumps
European and US refineries face closure threats due to falling fuel demand - prompting some to produce biofuels instead.
The COVID-19 pandemic has hit global demand and the International Energy Agency (IEA) said that by 2030 around 14% of current refining capacity in advanced economies “faces the risk of lower utilisation or closure”.
Shutting down refineries is a costly process so some owners are switching to cleaner biofuels by processing vegetable oil and waste oils.
BP, Total and Eni outlined in recent months they plan to grow their biofuel production by 2030 while reducing their global oil refining footprints.
Other European refiners including Repsol and independent Italian refiner Saras also plan to increase their capacity.
Europe’s biofuel production capacity is expected to grow to around 8 million tonnes per year from the current 3 million tonnes per annum in the coming years.
The COVID-19 pandemic has hit global demand and the International Energy Agency (IEA) said that by 2030 around 14% of current refining capacity in advanced economies “faces the risk of lower utilisation or closure”.
Shutting down refineries is a costly process so some owners are switching to cleaner biofuels by processing vegetable oil and waste oils.
BP, Total and Eni outlined in recent months they plan to grow their biofuel production by 2030 while reducing their global oil refining footprints.
Other European refiners including Repsol and independent Italian refiner Saras also plan to increase their capacity.
Europe’s biofuel production capacity is expected to grow to around 8 million tonnes per year from the current 3 million tonnes per annum in the coming years.
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