Oil majors investing 8 times more in biofuels than hydrogen

(Transport and Environment, 11 Jan 2023) European oil refiners favouring unsustainable biofuels option over green hydrogen.

Europe’s oil majors’ ‘big bet’ on hydrogen as the transport fuel for the future is not so big in reality, according to a new study on behalf of Transport & Environment (T&E)[1], which shows that investments in biofuels refining are eight times bigger. T&E accuses oil producers of not being serious about investing in genuinely clean fuels, but choosing the easy, unsustainable biofuels option. 

Where Europe’s oil giants Shell, BP, Total, ENI and Repsol are investing in hydrogen, only part of this is truly ‘green’. Most of their investments are going towards decreasing the carbon intensity of their refinery operations, not for developing green transport fuels, the study shows.

Geert Decock, electricity and energy manager at T&E, said: “Oil producers are promoting hydrogen as their big bet for the future, but in reality their investments in green hydrogen are pitiful. Instead they are focusing their new refining capacity on biofuels which cannot sustainably supply the world’s transport needs. This is not an industry pushing the boundaries of clean technology.”

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Transport and Environment, 11 Jan 2023: Oil majors investing 8 times more in biofuels than hydrogen