Assessing Risks in the Circular Economy of the Advanced Biofuel Industry

Abstract

The advanced biofuel industry is having enormous potential in realizing the current as well as future energy needs. Present study focusses to assess and understand the various risks that the biofuel industry is facing in the circular economies. An exhaustive literature review was conducted for 30 studies published between 2014 and 2024, following PRISMA 2020 statements were conducted. Nine major risks are reported that were prevailing in the advanced biofuel industry. The risks identified in the published studies are related with production, supply chain, societal acceptance, fuel price, operational cost, engine compatibility, technological, environment, and management. High operating and fuel costs, fluctuating feedstock prices, and limited biomass availability, which hinder the production and supply chain, are mostly discussed in the articles reviewed for this study. Environmental concerns include competition for land, which contributes to deforestation, biodiversity loss, and conflicts with food production. Whereas, the pre-treatment of lignocellulosic biomass requires substantial water usage, raising significant sustainability issues. Additionally, engine compatibility poses a risk for manufacturers, as minor biofuel blends can help in reducing emissions, but significant blending can cause problems in internal combustion engines. Study concludes that risks in supply chain, production, technology, and operations can be mitigated by optimizing design and planning decisions, adjusting inventory levels, and refining the types and amounts of transported and raw materials. Algal biofuel from microalgae is a promising solution due to its high productivity, but its production cost is high and can be optimized through large-scale operations. Policy improvements could also help the farmers in minimizing the risks associated with biomass feedstock availability and storage.