The biofuels trading desk is one of the most successful ventures of Gunvor’s portfolio. The company combines its blending expertise, risk management capabilities and global logistical coverage to meet customers’ needs with tailor



Biofuels

Biofuels are a renewable energy source, made from organic matter or wastes, that can play a valuable role in reducing carbon dioxide emissions. Biofuels are one of the largest sources of renewable energy in use today. In the transport sector, they are blended with existing fuels such as gasoline and diesel.

Types of Biofuels

The two most common types of biofuels in use today are ethanol and biodiesel, both of which represent the first generation of biofuel technology. The Bioenergy Technologies Office (BETO) is collaborating with industry to develop next-generation biofuels made from non-food (cellulosic and algae-based) resources.

Ethanol:-Ethanol (CH3CH2OH) is a renewable fuel that can be made from various plant materials, collectively known as “biomass.” Ethanol is an alcohol used as a blending agent with gasoline to increase octane and cut down carbon monoxide and other smog-causing emissions.

The most common blend of ethanol is E10 (10% ethanol, 90% gasoline). Some vehicles, called flexible-fuel vehicles, are designed to run on E85 (a gasoline-ethanol blend containing 51%–83% ethanol, depending on geography and season), an alternative fuel with much higher ethanol content than regular gasoline. Roughly 97% of gasoline in the United States contains some ethanol.

Most ethanol is made from plant starches and sugars, but scientists are continuing to develop technologies that would allow for the use of cellulose and hemicellulose, the non-edible fibrous material that constitutes the bulk of plant matter. In fact, several commercial-scale cellulosic ethanol biorefineries are currently operational in the United States.

The common method for converting biomass into ethanol is called fermentation. During fermentation, microorganisms (e.g., bacteria and yeast) metabolize plant sugars and produce ethanol.

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BIODIESEL:-Biodiesel is a liquid fuel produced from renewable sources, such as new and used vegetable oils and animal fats and is a cleaner-burning replacement for petroleum-based diesel fuel. Biodiesel is nontoxic and biodegradable and is produced by combining alcohol with vegetable oil, animal fat, or recycled cooking grease.

Like petroleum-derived diesel, biodiesel is used to fuel compression-ignition (diesel) engines. Biodiesel can be blended with petroleum diesel in any percentage, including B100 (pure biodiesel) and, the most common blend, B20 (a blend containing 20% biodiesel and 80% petroleum diesel).