Electrificacion y bioeconomia: tres lados de la historia
Summary
This executive summary from the Stockholm Environment Institute examines the interactions between the bioeconomy—defined as sectors based on biomass production and processing—and the rapid cost reductions and deployment of variable renewable energy (VRE), specifically solar photovoltaics, wind turbines, and lithium-ion batteries. The document categorizes these interactions as competitive, complementary, or synergistic, arguing that bioeconomy policy must be designed to integrate with and benefit from electrification to achieve deep decarbonization.
Key insights
- The rapid decline in costs for solar photovoltaics, wind turbines, and lithium-ion batteries is transforming global energy markets. In many markets, solar and wind energy have reached cost parity with fossil fuels even without subsidies due to low operating costs and falling capital expenses.
- In low-income countries, decentralized electricity solutions like mini-grids and home solar systems are becoming more cost-effective. It is estimated that approximately 50% of people who need electricity access by 2030 would be better served by these decentralized solutions.
- Electrification and biofuels compete in the land transport sector. While electric vehicles are seeing mass deployment due to lower battery costs, liquid biofuels remain necessary for the existing global fleet of internal combustion engines. However, over-reliance on biofuels could create an infrastructure lock-in that delays the transition to full electrification.
- Biofuels are identified as critical for the aviation and maritime sectors, where batteries are only suitable for niche segments. For aviation, the only viable alternatives to fossil fuels are biofuels or synthetic electro-fuels based on hydrogen and carbon capture and utilization (UCC), with the latter currently only competitive against the most expensive biofuels.
- Biomass can support the decarbonization of heavy industries like steel and cement through two paths: as a substitute for fossil fuels in processes like iron ore pelleting and cement kilns, or as a carbon source for iron processing into steel.
- There is a synergistic relationship between electrification and biofuel production. For example, the Swedish company Preem aims to produce three million cubic meters of biofuels by 2030. Using low-carbon electricity for electrolysis to produce hydrogen—replacing the traditional steam reforming of natural gas—can significantly reduce the life-cycle carbon footprint of these biofuels.
- In low-income countries, a 'clean stacking' approach is proposed for cooking, where households use a mix of clean energy sources—such as solar for lighting and clean biomass for cooking—because electric cooking remains unaffordable for many.
Cite the original document
- APA
- Stockholm Environment Institute (2019). Electrificacion y bioeconomia: tres lados de la historia. https://www.sei.org/publications/electrificacion-y-bioeconomia-tres-lados-de-la-historia/
- Chicago
- Stockholm Environment Institute. Electrificacion y bioeconomia: tres lados de la historia. 2019. https://www.sei.org/publications/electrificacion-y-bioeconomia-tres-lados-de-la-historia/.
- Wikipedia
- {{cite report |author=Stockholm Environment Institute |title=Electrificacion y bioeconomia: tres lados de la historia |date=4 December 2019 |url=https://www.sei.org/publications/electrificacion-y-bioeconomia-tres-lados-de-la-historia/ |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{stockholmenvironmentinstitute2019electrificacion, author = {{Stockholm Environment Institute}}, title = {{Electrificacion y bioeconomia: tres lados de la historia}}, institution = {Stockholm Environment Institute}, year = {2019}, month = dec, url = {https://www.sei.org/publications/electrificacion-y-bioeconomia-tres-lados-de-la-historia/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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