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Global Biofuel Production

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July 07, 2026

Prelims: Current events of national and international importance | Energy

Why in News?

Recently, the OECD‑FAO Agricultural Outlook 2026‑2035 projects that food‑based biofuels will continue to dominate global biofuel production through 2035.

Organisation for Economic Co-operation and Development (OECD) and Food and Agriculture Organization (FAO) Agricultural Outlook 2026–2035

  • It is a joint report that gives a 10‑year forecast of global, regional, and national trends in agriculture, biofuels, and seafood markets.

First‑generation biofuels

  • They are produced from edible food crops using established fermentation and transesterification processes.
  • Ethanol (from maize, sugarcane, rice, and cereals) and biodiesel (from soybean, rapeseed, and palm oil).

Second‑generation biofuels

  • They are manufactured from non-edible biomass or lignocellulosic biomass.
  • For example, agricultural residues (straw and husks) and forestry waste, requiring more complex thermochemical and biochemical conversion methods.

Lignocellulosic biomass – The structural plant material, mainly made of cellulose, hemicellulose, and lignin (Earth’s most abundant renewable resource).

Key Findings of OECD‑FAO Report

  • First-generation biofuels will continue to dominate global biofuel markets over the next decade.
  • Second-generation biofuel will not see a substantial increase in production share.
  • Global ethanol projection – By 2035, production expected to reach 162.5 billion litres
  • Feedstock share – Maize (61%), sugarcane (22%), molasses (5%), and wheat (2%).
  • Global biodiesel projection – Output to rise to 99 billion litres; vegetable oils (69%), used cooking oils and tallow (23%).
  • Consumption growth – Biofuel demand is to grow at 1.4% annually through 2035, slower than the past decade.
  • Global demand – Emerging economies (India, Brazil, and Indonesia) to account for 80% of demand growth.

Reference

OECD-FAO report

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