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29-07-2026

What Is Biofuel? Types, Examples, and Advantages

By Chandra Asri Group Editorial Team

Did you know? Renewable energy is not limited to solar, wind, and hydropower. There is another energy source beneficial for households and industries: biofuels. 

Biofuel can be an alternative to fossil fuels like gasoline and diesel. Then, what kind of biofuels can we use? Read this article until the end to learn more. 

What Is Biofuel?

What Is Biofuel

Biofuel comes from organic materials, such as algae, animals, organic waste, and plants. As one of the renewable energies, biofuel is developed to help reduce greenhouse gas emissions and dependence on fossil fuels. 

Biofuel can be derived from biomass or wood, combusted to emit heat and move the generator, producing electricity. More than 90% of biofuel produced globally comes from food crops, such as corn, sugarcane, palm oil, and soybean oil. The starch and sugar fermentation create ethanol that can be used as a fuel. Moreover, biofuel can be derived from used cooking oil and animal fats. 

In the past 20 years, global biofuel production rose 7-fold. According to Our World in Data, the total biofuel produced in 2024 reached 1,424.52 TWh, with the United States and Brazil as the countries with the most biofuel production. 

Indonesia also took part as one of 5 countries or regions producing more than 80% of biofuel globally, with a production of 127 TWh in 2024.

top biofuel production countries

Biofuels can be produced using various conversion methods, such as thermochemical and biochemical methods. Thermochemical conversion methods use heat to convert biomass, such as gasification, combustion, and pyrolysis.

Biochemical conversion uses biological processes, such as anaerobic digestion, to convert biomass into biofuels. This process is typically applied to organic waste, agricultural waste, and animal manure.

Read also: What Is Clean Energy? Benefits, Types, and Examples

Types of Biofuel 

Biofuel is continuously developed, emerging in several generations. Here is the information:

  • First-generation biofuel: It is commonly made from food crops through fermentation, such as sugarcane, corn, and palm oil. The final product is bioethanol. 
  • Second-generation biofuel: It is made of non-food crops, such as wood and agricultural waste. 
  • Third-generation biofuel: It is made of cyanobacteria and algae. The development potential is quite high because algae grow fast and have high oil content. 
  • Fourth-generation biofuel: It comes from genetically modified organisms or altered material to increase the energy content. 

The examples of biofuels are bioethanol, biodiesel (from vegetable oil), and biogas (from anaerobic organic waste decomposition). Furthermore, there are also methanol, dimethyl ether, methane gas, and butanol that are continuously developed as widely used biofuels. 

Read also: Indonesia's Renewable Energy Potential and Challenges

Advantages of Biofuel 

Advantages of Biofuel

Biofuel offers many advantages for users and the environment, such as:

1. Energy Diversification

Biofuel supports energy transition and independence because it reduces the full dependence on fossil fuels. By developing biofuel, a nation can improve energy diversification amidst the increasing energy demand. 

2. Decreasing Greenhouse Gas Emissions

Biofuel emits carbon dioxide, but the emissions can be recycled. The starch plants used as the biofuel material can absorb the emissions from the air. After that, the crops are harvested to make biofuels. 

3. Reusing Waste

Biofuels are derived not only from vegetable oils but also from used cooking oil, food scraps, and agricultural waste. Thus, biofuels not only provide a renewable fuel source but also transform waste and trash into useful products.

4. Creating Job Openings and Supporting the Economy

The development of biofuels can create a variety of jobs, particularly in agriculture, industry, and R&D (research and development). It can also support economic growth in the areas where it is developed.

5. Encouraging Innovations

In addition to opening more job opportunities, the development of biofuel can encourage green technology innovations for various sectors. 

That is some information about biofuels, their benefits, and examples. Biofuel production in Indonesia is quite extensive, so it needs to be continuously developed to enable widespread use and support the preservation of the Earth.

Biofuel is one initiative that supports the principles of the circular economy because it processes organic waste and trash into renewable fuel. In other words, waste that would end up in landfills now has a new life cycle as valuable products.

Along with biofuels derived from organic waste and starchy plants, another circular-economy-based fuel is pyrolysis oil produced from plastic waste. An example is PLUSRI.

This renewable fuel (BBMT), developed by the Chandra Asri Group and IPST ASARI, is processed from tens of thousands of kilograms of plastic waste, yielding tens of thousands of liters of pyrolysis oil. This fuel can be used for various energy needs, ranging from transportation to household applications.

Chandra Asri Group, as #YourGrowthPartner, consistently prioritizes service and product quality and is committed to continuously contributing to environmental, social, and economic well-being through eco-friendly and circular economy-based innovations.

This breakthrough helps reduce waste generation, engages local communities in viewing plastic waste as a new economic opportunity, and is expected to support the green economy in Cilegon and other areas.

Read also: Natural Gas: Types and Its Benefits for Households and Industries

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