A new study was recently published by the European Commission’s Directorate-General for Research and Innovation (DG RTD). The report titled Mobilization of industrial capacity building for advanced biofuels, examines how the European Union could significantly increase its industrial capacity for advanced biofuels by 2030, supporting the decarbonisation of transport and the development of competitive European value chains.

The study finds that an increase in advanced biofuel production is technically and economically feasible within the EU. Europe benefits from a strong research and innovation base, mature technology pathways and access to sustainable feedstocks. With appropriate investment and policy support, these assets could enable large-scale industrial deployment over the coming decade.

Advanced biofuels are produced from non-food and sustainable biomass, including agricultural residues, forestry by-products and organic waste. They play a key role in reducing greenhouse gas emissions in sectors that are difficult to electrify, such as aviation, maritime transport and heavy-duty road transport.

The report highlights that achieving EU targets will require a portfolio of technological pathways to allow the EU industry to draw on the full range of domestic feedstocks available in the EU

The study identifies investment needs as a key factor for scaling up industrial capacity. Financial support will be required to close the gap between the biofuels’ Levelised Cost of Production (LCoP) and the market price of their fossil fuel counterparts.

It estimates that annual public support of between €3.8 billion and €7.5 billion may be required by 2030 to finance new production plants. In addition, between €700 million and €1.25 billion per year could support feedstock mobilisation by farmers, foresters and biomass aggregators. Existing EU funding instruments, including InvestEU, the Connecting Europe Facility, Cohesion Policy funds and the Common Agricultural Policy, could contribute to addressing these needs.

Beyond funding, the study highlights the importance of stable and predictable regulatory frameworks, simplified sustainability certification procedures and shorter permitting timelines.

This study builds on a previous report published in 2024, prepared for DG RTD, which analysed the outlook for developing industrial capacity for drop-in advanced biofuels. That earlier work assessed feedstock availability, technology readiness, market barriers and policy drivers, in the context of the European Green Deal and the Fit for 55 package.

Together, the two studies provide a robust evidence base to support EU policy-making. They illustrate how research and innovation results can be translated into industrial capacity, contributing to reduced dependence on fossil fuels, strengthened economies and progress towards the EU’s objective of climate neutrality by 2050.