While biofuels are being touted as a greener, cost-effective alternative to traditional fossil fuels, new research from Transport & Environment (T&E) has suggested that the cost benefits – at least compared to that of an EV – are negligible.
T&E’s research focused on hydrotreated vegetable oil (HVO), the most widely-promoted alternative for fossil fuels, and found that running a car on said fuel is 79% more expensive, on average, than charging an electric vehicle.
As its research noted, charging an EV costs around €7 per 100 kilometres, on average, across the EU, while running a car on pure HVO costs approximately €13 over the same distance.
T&E‘s research comes as policymakers and industry groups – particularly in leading automaking countries such as Germany and Italy – debate EU car CO2 targets, with proposals to allow combustion engine vehicles running on advanced biofuels to count as zero-emission under EU carbon dioxide targets.
‘Far cheaper’
“Charging an EV is far cheaper than filling up a tank on advanced biofuels. By promoting biofuels for cars, the car industry wants to leave drivers with the bill while it delays electrification,” commented Émilie Casteignau Bernardini, vehicles policy manager at T&E.
“On the contrary, maintaining the EU targets will ensure an increasing supply of more affordable EVs and avoid expensive diversions into HVO and other biofuels that cannot be scaled sustainably.”
According to T&E, supply constraints around advanced biofuels present another issue – currently, said fuels are produced from limited feedstocks, such as the biomass portion of municipal solid waste or cellulosic residues – which could lead to high biofuel prices in the future.
Aviation demand for biofuels is also expected to grow in the coming years, in line with the ReFuelEU Aviation Regulation, which would put motorists in competition with the sector for limited stocks.
Emissions rules
As T&E noted, proposed changes to emissions rules at an EU level would lead to a 60% increase in fuel spending in 2050 compared to the current regulation, with European drivers facing an additional €500 billion in fuel costs between 2025 and 2050.
‘With oil prices surpassing $100 a barrel, the additional cost of fueling a petrol car is expected to be five times the extra cost of charging an electric car, an earlier T&E analysis found.
‘Rejecting the proposed biofuel credits would reduce motorists’ bills, accelerate the shift to e-mobility, and cut Europe’s reliance on imported fossil fuels and potentially unsustainable or fraudulent biofuels feedstocks,’ T&E said. ‘EVs already shield drivers from the higher petrol prices caused by the energy crisis.’ Read more here.
