Energy security from biofuels

Many countries around the world are actively reducing their use of traditional gasoline and diesel by blending them with biofuels, which helps limit carbon emissions and contributes to ensuring domestic energy supply in the face of shocks related to the global oil market.

A gas station in Brazil, where ethanol biofuel can be blended with gasoline or used separately. Photo: AFP

Increase the proportion of biofuels.

According to AFP , in addition to spending heavily on fuel subsidies amid the Middle East conflict driving up global energy prices, Malaysia agreed to increase the mandatory blending ratio of biofuels from 10%, known as B10, to 15% starting in April. Malaysia's fuel subsidy costs now amount to 6 billion ringgit per month (approximately 39 trillion VND), a sharp increase from 700 million ringgit before the conflict erupted.

Malaysian Economy Minister Akmal Nasir stated that the use of biofuels will begin at 12%, then increase to 15%, without incurring additional production costs and utilizing only existing blending plants in the Southeast Asian nation. As the world's second-largest producer and exporter of palm oil, Malaysia is leveraging its abundant domestic resources to increase biofuel production.

Indonesia, the world's largest palm oil producer, cannot afford to miss this opportunity. Antara reports that Indonesia is accelerating the rollout of a diesel blend containing 50% B50 biofuel. This transition to B50 biofuel is part of President Prabowo Subianto's broader strategy to bolster the economy's resilience to global supply disruptions.

Indonesian Energy Minister Bahlil Lahadalia announced the launch of the B50 biofuel program on July 1st, following nearly six months of successful testing. The B50 blend, comprising 50% crude palm oil and 50% fossil diesel, has been tested in various sectors including heavy equipment, maritime transport, railway systems, and logistics vehicles, paving the way for nationwide deployment in Indonesia. The palm oil nation previously made significant progress with its B40 program, which combined 40% palm oil-based biofuel with conventional diesel, contributing to a reduction of 3.3 million kiloliters of diesel imports and an equivalent reduction of 38.88 million tons of carbon emissions.

Biofuels are produced from biomass, typically crops such as corn, sugarcane, soybeans, and palm oil, instead of fossil hydrocarbons like petroleum. They are primarily used in transportation, blended into gasoline and diesel as a cleaner alternative, but can also be used for electricity generation, heating, and in the aviation sector.

Boosting the export of biofuels.

The United States and Brazil, the world's two largest ethanol producers, are seeing a surge in ethanol exports as consumers seek to increase their fuel supply.

Reuters reports that the US has seen a 20% increase in ethanol exports so far this year, following record export levels last year. The RFA (French Ethanol Industry Association) announced exports of 638 million gallons (1 US gallon is equivalent to approximately 3.8 liters) in the first quarter of this year.

Meanwhile, Brazil could more than double its overseas sales in the new trading season (2026/27), which began this past April. Brazilian consulting firm Datagro estimates that the South American nation will increase its ethanol production by approximately 4 billion liters in the new season, reaching a record 41.4 billion liters. Biofuels currently account for about 25% of Brazil's road transport fuel needs.

“Many countries around the world are looking to access any liquid fuel source they can find,” Geoff Cooper, CEO of the Renewable Fuels Association (RFA), asserted, adding that the price of US ethanol is now competitive with gasoline.

Because, in addition to cost and energy security, biofuels also offer significant environmental benefits, producing up to 80% less greenhouse gas emissions than conventional diesel.

Source: https://baodanang.vn/an-ninh-nang-luong-tu-nhien-lieu-sinh-hoc-3336989.html