Waste-based biofuels can prove to be a key driver of energy transition efforts and boost the current limited global supply of low-carbon transportation fuels, according to Wood Mackenzie.
As the world transitions to new and sustainable energy sources, the somewhat neglected biofuel sector may have a crucial part to play and help create circular economy, the global research consultancy said in its latest report on Friday.
Biofuels — cleaner replacement for petroleum-based fuels that are produced from renewable sources including new and used vegetable oils and animal fats — currently account for only 3 per cent of the world’s 100 million barrels per day liquid fuel demand.
However, development of new technology can increase biofuel production from municipal waste, agricultural residue and by recycling plastics wastes.
This could add an additional 20 million bpd of liquid biofuel by 2050, about a quarter of all future liquid fuel demand, which is estimated at 95 million bpd in 2050.
“Many governments have understandably pulled away from using food-based biofuels, which has hampered the industry’s growth,” Wood Mackenzie vice president Alan Gelder said.
“However, there still is plenty of opportunity for growth, especially when we look at waste-based alternatives.”
Biofuels are becoming increasingly important to global efforts for energy transition as governments around the world push to meet their carbon neutrality targets by mid-century.
Sustainable fuels are vital for the transport sector, especially the global aviation industry that has set ambitious goals to cut its carbon footprint by 2050.
Airlines across the globe are investing heavily in developing new sources of alternative fuels. They are also increasingly using sustainable aviation fuels to power flights. In 2019, UAE’s Etihad Airways operated the UAE's first commercial flight powered in part by biofuel generated from Abu Dhabi-grown plants.
The UAE’s national flag-carrier has cut its carbon emissions by 56 per cent between 2018 and 2021 as it successfully implemented programmes aimed at establishing a more sustainable business model. In May, it carried out the world’s most intensive sustainable flight-testing programme, completing 42 eco-flights over a five-day period.
In June, Sydney-based Qantas Airways and Airbus said they would jointly invest up to $200 million to kick-start Australia's sustainable aviation fuels industry.
“For some areas of the transport sector, such as air travel, there is little alternative to liquid fuel, making decarbonising difficult,” Mr Gelder said. “This source of biofuel could be tremendously beneficial, providing a cleaner fuel alternative that addresses both future power and environmental needs.”
Wood Mackenzie said using waste material for fuel would result in significant savings on landfill or incineration costs and related emissions. Bio-based diesel and aviation fuels from plant-based feedstock could emit 80 per cent less carbon than the crude oil-based products that dominate market today.
“Waste-based biofuels would curb carbon emissions at a similar rate and solve issues for industries that are hard to electrify,” the consultancy said.
The net-zero pathway demands that nearly half of biofuels consumed in 2030 — 45 per cent — must be produced with waste, it said citing the International Energy Agency.
Various technology to convert solid wastes into liquids is in development stage and will give rise to local circular economies as advanced processes will be conducted at local refineries.
“In turning waste into biofuels, being local is an advantage,” Mr Gelder said. "The biofuels ecosystem would revolve around a hub-and-spoke distribution model, where the initial conversion of waste to biofuels is local, with the liquids produced then aggregated for processing in an existing refining facility.
"Refineries know how to do this and for many, this could be key to their long-term viability. It would have tremendous benefits to local economies and employment, creating a powerful argument for governments to develop incentives.”
Wood Mackenzie said if all fell into place for waste-based biofuels, “the accelerated energy transition projections are dramatic”.
In the consultancy’s accelerated energy transition scenario, the global demand for liquids would fall to only 35 million bpd by 2050, 60 per cent lower than the base case. Biofuels could meet two thirds of liquids demand in hard-to-decarbonise transportation sectors, as well as provide circular feedstocks for petrochemicals.
It said: “If the refining sector begins to process waste for biofuels and governments support the initiative, we could be on a viable pathway to a circular economy, with its many benefits, that is compatible with mitigating climate change. It’s a win-win scenario.”
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MATCH INFO
Southampton 0
Manchester City 1 (Sterling 16')
Man of the match: Kevin de Bruyne (Manchester City)
Analysis
Members of Syria's Alawite minority community face threat in their heartland after one of the deadliest days in country’s recent history. Read more
Zayed Sustainability Prize
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Five films to watch
Castle in the Sky (1986)
Grave of the Fireflies (1988)
Only Yesterday (1991)
Pom Poki (1994)
The Tale of Princess Kaguya (2013)
Mohammed bin Zayed Majlis
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Zayed Sustainability Prize
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
The biog
Marital status: Separated with two young daughters
Education: Master's degree from American Univeristy of Cairo
Favourite book: That Is How They Defeat Despair by Salwa Aladian
Favourite Motto: Their happiness is your happiness
Goal: For Nefsy to become his legacy long after he is gon
Secret Nation: The Hidden Armenians of Turkey
Avedis Hadjian, (IB Tauris)
Tonight's Chat on The National
Tonight's Chat is a series of online conversations on The National. The series features a diverse range of celebrities, politicians and business leaders from around the Arab world.
Tonight’s Chat host Ricardo Karam is a renowned author and broadcaster who has previously interviewed Bill Gates, Carlos Ghosn, Andre Agassi and the late Zaha Hadid, among others.
Intellectually curious and thought-provoking, Tonight’s Chat moves the conversation forward.
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The biog
Name: Salvador Toriano Jr
Age: 59
From: Laguna, The Philippines
Favourite dish: Seabass or Fish and Chips
Hobbies: When he’s not in the restaurant, he still likes to cook, along with walking and meeting up with friends.
What vitamins do we know are beneficial for living in the UAE
Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.
Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.
Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.
Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.
Company Fact Box
Company name/date started: Abwaab Technologies / September 2019
Founders: Hamdi Tabbaa, co-founder and CEO. Hussein Alsarabi, co-founder and CTO
Based: Amman, Jordan
Sector: Education Technology
Size (employees/revenue): Total team size: 65. Full-time employees: 25. Revenue undisclosed
Stage: early-stage startup
Investors: Adam Tech Ventures, Endure Capital, Equitrust, the World Bank-backed Innovative Startups SMEs Fund, a London investment fund, a number of former and current executives from Uber and Netflix, among others.
The Byblos iftar in numbers
29 or 30 days – the number of iftar services held during the holy month
50 staff members required to prepare an iftar
200 to 350 the number of people served iftar nightly
160 litres of the traditional Ramadan drink, jalab, is served in total
500 litres of soup is served during the holy month
200 kilograms of meat is used for various dishes
350 kilograms of onion is used in dishes
5 minutes – the average time that staff have to eat
Kamindu Mendis bio
Full name: Pasqual Handi Kamindu Dilanka Mendis
Born: September 30, 1998
Age: 20 years and 26 days
Nationality: Sri Lankan
Major teams Sri Lanka's Under 19 team
Batting style: Left-hander
Bowling style: Right-arm off-spin and slow left-arm orthodox (that's right!)
German intelligence warnings
- 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
- 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
- 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250
Source: Federal Office for the Protection of the Constitution
UAE currency: the story behind the money in your pockets