As the global energy and chemical sectors pivot toward decarbonization, renewable fuels such as biodiesel and bionaphtha are gaining momentum. But not all renewable fuels are created equal. Here’s a breakdown of first-generation and second-generation biodiesel, as well as bionaphtha, highlighting how they are produced and where they are used.
1st Generation Biodiesel (FAME)
- Process & Feedstocks: Produced via transesterification of vegetable oils (rapeseed, soybean, palm) or animal fats with methanol. This yields fatty acid methyl esters (FAME) — the main form of biodiesel used in Europe under EN 14214.
- Applications: Blended with diesel fuel for road transport. Typical blend levels range from B5 to B20, while B100 is used in specially adapted engines.
- Limitations: Competes with food crops for arable land and has limited cold flow and oxidation stability.
2nd Generation Biodiesel (HVO / Renewable Diesel)
- Process & Feedstocks: Produced through hydroprocessing (hydrotreatment) of waste oils, used cooking oil (UCO), animal fats, and other advanced waste biomass. The process removes oxygen and saturates the molecules, resulting in a high-quality hydrotreated vegetable oil (HVO) or renewable diesel.
- Applications: Drop-in fuel with properties similar or superior to fossil diesel. Compatible with existing diesel engines and infrastructure without blending limits.
- Advantages: Higher cetane number, better cold performance, no FAME-related engine issues, and uses non-food waste streams.
Bionaphtha
- Process & Feedstocks: A by-product of HVO or bioethanol production, bionaphtha is derived from the same waste and residue feedstocks used for HVO (e.g. UCO, tallow, tall oil).
- Applications:
- Fuel sector: Used as a blending component in gasoline.
- Petrochemicals: Serves as a renewable feedstock for cracking into ethylene and propylene — the basis for plastics, detergents, and synthetic materials.
- Market Outlook: With growing demand for sustainable petrochemical inputs, bionaphtha plays a key role in defossilizing the plastics value chain.
More details on this evolving market can be found in S&P Global’s bionaphtha overview.
As clean energy transitions accelerate, the shift from food-based to waste-based biodiesel — and the emergence of biobased petrochemical inputs like bionaphtha — will be essential to meeting sustainability goals.
If you’re sourcing feedstocks for biodiesel or renewable naphtha, contact Prime Elements — your partner in reliable, traceable, and sustainable raw materials.
