What is meant by green fuels?

Green fuels

The International Energy Agency (IEA) reports that worldwide demand for biofuels is set to grow by 41 billion litres or 28 percent by 2026. Biofuel is just one type of green fuel. Green fuels emit less greenhouse gas emissions and are more environmentally sustainable than traditional fuels. 

They contribute significantly to the Sustainable Development Goals of 7: Affordable and Clean Energy and 13: Climate Action. Ultimately, green fuels can pave the way for decarbonisation and curb our reliance on fossil fuels. Keep reading as we explore how companies can advance their business sustainability efforts by harnessing these fuels. 

What is green fuel?

Green fuel is a type of fuel extracted from animal and plant materials. It is often referred to as biofuel and is considered to be more environmentally friendly than widely used fossil fuels. In our desperate hunt for alternative energy sources, green fuel has continued to evolve and could have huge potential. 

They are carbon-free or carbon-neutral alternatives to fossil fuels, produced from electricity and hydrogen from renewable sources. Considered to be critical for decarbonising heavy industries, green fuels can allow for a smooth transition from fossil to eco-friendly energy sources in sectors where direct electrification is not feasible. This is because they can be utilised in both propulsion systems and existing storage. 

Why are alternative fuels called green energy?

Green fuels are a type of alternative fuel, and they are considered to be green energy because they make use of renewable energy like solar power or wind. They are termed electrofuels or synthetic fuels and are gaseous or liquid fuels produced with electricity from renewable sources. 

Some examples include synthetic natural gas (SNG), ammonia, or green methanol. During the production process, these fuels emit only the amount of carbon dioxide that is absorbed. Alternative fuels fall under the umbrella of green energy, which is energy created using a method and from a source that does not contribute negatively to the natural environment. 

Why are green fuels important?

Green fuels have a vital role to play in helping us to decarbonise industries across the world to achieve our climate goals. Biofuels, for instance, can decarbonise transport by offering a low-carbon solution for existing technologies. 

These include heavy-duty trucks and light-duty vehicles, aircraft, ships, and more. We desperately need to move away from fossil fuels, and green fuels allow us to do that. Fighting climate change will be all about sourcing low-carbon, alternative sources of both fuel and energy. 


Green fuels represent a pivotal advancement in our global effort to transition towards a more sustainable and clean energy landscape. Their role in decarbonising transport and heavy industries, where direct electrification may not be feasible, underscores their potential to act as bridge solutions in our shift away from fossil fuels. As demand for these fuels continues to grow, it is crucial for businesses, governments, and individuals to invest in and adopt green fuel technologies. Doing so will not only help mitigate climate change but also drive forward a new era of sustainable energy solutions that are both accessible and effective.

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