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Biomass can be processed into liquid biofuels to replace fossil fuels for transport and energy production. Biofuels are often categorised by generation. Generations describe the raw materials, production technologies and sustainability of biofuels in terms of their environmental impact.

In Finland, biofuels are used in particular when blended with transport fuels. Interest in the use of biofuels for transport is growing, particularly because they can help reduce greenhouse gas emissions from transport. At the same time, they can improve the domestic content of transport fuels and generate income for the domestic forestry and energy industries and domestic raw material producers, such as agricultural and forestry entrepreneurs, instead of buying imported oil.

Promoting the use of biofuels

The climate and energy policies of the European Union and Finland set targets for increasing the use of biofuels in transport. The European Union’s target is that by 2030, 29% of energy consumption in transport must come from renewable energy sources.

Finland’s energy and climate strategy sets emission reduction targets for the burden sharing sector (i.e. the non-emissions trading sectors) and thus also for transport. The medium-term climate plan (KAISU) also covers emission reduction measures in the burden sharing sector to meet EU commitments.

In Finland, the promotion of biofuels has mainly been based on the annual distribution obligation imposed on transport fuel sellers. In practice, the increase in biofuels is achieved by blending more and more bio-based alcohols (such as ethanol and butanol) into petrol and biodiesel refined from biomass into diesel.

According to the distribution obligation, the share of biofuels must be 19.5% in 2026. The flexibility mechanism of the distribution obligation allows distributors to meet up to 5.5 percentage points of their obligation through alternative emission reduction measures that have been implemented in Finland.

In 2030 and beyond, the distribution obligation will be 34%, slightly higher than the EU obligation, because transport plays an important role in reducing emissions in Finland as a whole. The distribution obligation applies to distributors of road transport fuel who supply at least 1 million litres of petrol, diesel, natural gas, biofuels, biogas and non-biological renewable fuels for consumption in a calendar year.

Generations of biofuels

Biofuels for transport can be produced from a wide range of biomasses using a variety of technologies and concepts. So-called first generation transport biofuels are produced worldwide from sugar and starch-rich plants (bioethanol) and oil-rich plants and bio-raw materials (biodiesel).

There are also more advanced second-generation biofuels in commercial production that are more environmentally sustainable. These biofuels are made from plant and wood-based cellulose, waste and residues. These biofuels are more effective in reducing emissions and are of higher quality than first generation biofuels. Second generation biofuel production also does not compete with food production.

Third-generation biofuels are new fuels under development but not yet in commercial production. Third-generation biofuels are produced from entirely new feedstocks, such as algae.

E10 petrol reduces carbon dioxide emissions from transport

Two types of petrol are available in Finland:

  • 95 octane: 95 E10
  • 98 octane: 98 E5

E10 petrol contains up to 10% bioethanol by volume and E5 petrol up to 5%. E10 petrol is not suitable for all cars, which is why an E5 alternative is also available.

In addition, E85, a high-octane ethanol that, as its name suggests, contains up to 85% ethanol by volume and at least 15% petrol, is available and can be used in flexfuel models of different car brands. Flexfuel cars can be flexibly fuelled with both high-octane ethanol and regular petrol, and both can be filled into the same tank.

Biodiesel and renewable diesel are different fuels

A bio-component is also blended into diesel fuel. Biodiesel is FAME (Fatty Acid Methyl Ester) diesel, i.e. esterified rapeseed or other oil. It currently contains up to 7% by volume.

Renewable diesel is mainly produced from waste-based feedstocks in a process similar to a conventional oil refinery. It can be used in a blend of more than 7%, often even as such (100% blend). 100% renewable diesel is already available on the Finnish market, but you should check with your car brand importer to see if it is suitable for your car. The advantage of renewable diesel is that its use does not require any changes to the car’s technology (so-called drop-in fuel).

Pyrolysis oil

In electricity and heat production, light and heavy oil can be replaced by, for example, pyrolysis oil. As its name suggests, it is produced by pyrolysis technology and can be produced from wood-based raw materials such as sawdust and wood chips, as well as forest industry by-products such as bark and black liquor. Under certain conditions, pyrolysis oil can be blended with fossil oil in oil refining to obtain a certain proportion of renewable diesel in the fossil mixture.

Pyrolysis oil is the cheapest liquid biofuel in terms of production costs. Its characteristics are closest to those of heavy fuel oil. Due to its higher oxygen content and higher moisture content, the calorific value of pyrolysis oil is about half that of mineral oil and of the same order of magnitude as wood pellets.

Synthetic fuels

Synthetic fuels are the latest entrant to the renewable fuel mix. They are referred to as electric fuels or RFNBO fuels when renewable energy is used for production. Renewable synthetic fuels are chemically constructed from hydrogen and carbon dioxide from a renewable source, often using methane or methanol.

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