Five Key Disadvantages of Biofuels

Five notable disadvantages of biofuels are land-use change and habitat loss, food-versus-fuel pressures, uncertain lifecycle climate benefits and local air pollution, intensive water use and runoff, and technical/economic constraints such as lower energy density and blend limits. As governments scale up biofuels for road transport, aviation, and shipping, these drawbacks shape sustainability, cost, and policy choices—especially the distinction between first-generation (food-based) fuels and advanced fuels made from wastes and residues.

Why the drawbacks matter amid the energy transition

Biofuels supply a meaningful share of transport energy in several regions, and demand is set to grow with new sustainable aviation fuel (SAF) mandates in the EU and incentives in the U.S. and Asia. Yet the impacts of biofuels vary widely by feedstock, farming practices, land history, and processing energy. Policymakers increasingly screen out high–indirect land-use change (ILUC) feedstocks and favor waste-based sources. Understanding the principal downsides helps explain why biofuels can aid decarbonization in some niches while creating trade-offs elsewhere.

The main drawbacks at a glance

The following list outlines five widely cited disadvantages of biofuels that regularly inform sustainability standards, investment decisions, and fuel policy.

1. Land-use change and biodiversity loss: Converting forests, peatlands, or grasslands to energy crops releases large stores of carbon and fragments habitats, with palm oil and soy expansion historically linked to deforestation in some regions.
2. Food-versus-fuel pressures and price volatility: Using corn, sugar, or vegetable oils for fuel can tighten global food and feed markets, contributing to higher prices and greater volatility during supply shocks.
3. Uncertain lifecycle climate gains and local air pollution: Net greenhouse-gas (GHG) benefits depend on farming inputs, processing energy, and ILUC; combustion also emits NOx and other pollutants, affecting air quality even if CO2 is offset by regrowth.
4. High water use and agricultural runoff: Irrigated energy crops can strain water-scarce regions, while fertilizers and pesticides increase nutrient runoff and eutrophication; biofuel refineries also consume process water.
5. Technical and economic constraints: Lower energy density (especially for ethanol), cold-flow issues for some biodiesels, engine and infrastructure “blend walls,” and dependency on subsidies can limit scale and raise costs.

Together, these issues explain why many standards now restrict high-ILUC feedstocks and incentivize waste- and residue-based fuels, while reserving biofuels for sectors that are hardest to electrify.

1) Land-use change and biodiversity loss

When natural ecosystems are converted to grow biofuel crops, the one-time carbon pulse from clearing—especially in forests and peat-rich soils—can take decades to centuries to repay through future emissions savings. This “carbon debt” can negate climate benefits over relevant policy timeframes. Beyond carbon, land conversion fragments habitats and reduces species richness. These risks are highly feedstock- and region-specific, which is why recent EU rules flag certain vegetable oils as high ILUC risk and cap or phase them down, while encouraging waste-based alternatives.

2) Food-versus-fuel pressures and price volatility

First-generation biofuels divert crops like corn, sugarcane, and vegetable oils from food and feed markets. During droughts, trade disruptions, or conflict, additional biofuel demand can amplify price spikes and volatility, with disproportionate impacts on low-income consumers. While the magnitude of biofuel-driven price effects is debated and varies by year and region, major agricultural and energy agencies acknowledge the linkage, and many policies now include safeguards or shift support toward non-food feedstocks.

3) Uncertain lifecycle climate gains and local air pollution

Lifecycle GHG performance hinges on factors such as fertilizer use (and resulting nitrous oxide emissions), process heat sources, and land-use change. Waste- and residue-based fuels generally score far better than food-crop fuels, but certification and traceability are critical to prevent fraud or misclassification. At the tailpipe, biofuels still emit pollutants: ethanol can increase aldehydes; some biodiesel blends historically showed higher NOx than petroleum diesel in certain engines, though modern aftertreatment reduces differences. Net climate and air-quality outcomes depend on the specific fuel, blend, engine technology, and regulatory controls.

4) High water use and agricultural runoff

Water footprints vary widely. Irrigated feedstocks in arid regions can be particularly water-intensive, while rain-fed crops in wetter climates have lower “blue water” withdrawals. Processing adds a further burden: U.S. ethanol plants typically use on the order of a few gallons of water per gallon of ethanol for cooling and process needs. Fertilizer and pesticide use for energy crops contribute to nutrient runoff and algal blooms, compounding water-quality challenges already associated with intensive agriculture.

5) Technical and economic constraints

Ethanol has roughly one-third lower energy density than gasoline, reducing vehicle range at higher blends. Many gasoline vehicles are certified up to E10 or E15; higher blends require flex-fuel vehicles and compatible infrastructure. Diesel substitutes face cold-flow and oxidation stability challenges unless carefully specified and blended. Pipeline compatibility, storage corrosion, and material compatibility can require upgrades. On cost, many biofuels remain reliant on mandates or credits (e.g., Renewable Fuel Standard, Low Carbon Fuel Standards, SAF incentives). Feedstock availability, seasonality, and competing uses (food, animal feed, oleochemicals) also cap scalable supply, particularly for waste oils and residues.

Summary

Biofuels can play a targeted role in decarbonizing hard-to-electrify segments, but five core drawbacks—land-use and biodiversity impacts, food-market pressures, uncertain lifecycle gains and local pollutants, water intensity and runoff, and technical/economic limits—constrain their sustainability and scale. The policy trend is toward rigorous sustainability criteria and a pivot to waste- and residue-based pathways, while reserving scarce sustainable bioresources for aviation, shipping, and industrial uses where alternatives are limited.

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