Biofuels
About biofuels
Biofuels are renewable energy sources derived from organic materials such as plants, algae, and even waste products. They offer a promising alternative to traditional fossil fuels like coal, oil, and natural gas.
In the quest for more sustainable and eco-friendly transportation fuels, these biofuels have emerged as viable options. Each with its unique set of advantages and challenges.
Hedging biofuels
Hedging biofuels is a crucial financial strategy employed by businesses and investors in the renewable energy sector. This helps mitigate price volatility and manage risk associated with biofuel production and consumption.
This practice allows market participants to secure a predictable financial outcome, ensuring stability and protecting against potential losses caused by fluctuating biofuel prices.
Types of biofuels
Fatty Acid Methyl Ester (FAME) is derived from fats or oils, usually obtained from plant sources. Most commonly it is produced by transesterification of soybean,- palm- and rapeseed oil.
Rapeseed Methyl Ester (RME) is a type of FAME. It is derived from rapeseed oil extracted from the seeds of the rapessed plant. It is produced by transesterification of rapeseed oil with methanol or ethanol. Often it is used in diesel engines.
Ethanol is produced through the fermentation of sugars into alcohol, followed by distillation to concentrate the ethanol. It is commonly blended with gasoline where it is known under names such as E10 or E85.
Used Cooking Oil Methyl Ester (UCOME) is produced from used cooking oils. This helps with waste reduction aswell as contributing to lowering greenhouse gas emissions when used as a fuel alternative.
Hydrotreated Vegetable Oil (HVO) is produced through a hydrotreating process. Here hydrogen is used to remove impurities and saturate double bonds in vegetable oils or animal fats. The biofuel is known for its high energy density.
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