Algae-to-Liquid Biofuel Pathways—a Literature Review of Technology, Techno-Economics and Sustainability

Concawe Review 34.1 - Article 2: Decarbonising transport is crucial for Europe’s greenhouse gas reduction goals, with biofuels expected to play a key role, particularly in the aviation and maritime sectors where electrification is challenging. Among the Annex IX biofeedstocks included in the Renewable Energy Directive, algae initially drew interest due to their rapid growth and carbon dioxide utilisation. However, economic and technical barriers have so far limited their commercial deployment. In Europe, algae production is still largely oriented towards high-value markets such as food, feed and cosmetics, while applications in biofuel production remain at an experimental and pilot scale.

This article presents the results of a literature review assessing the current state of the algae industry, covering both macroalgae and microalgae. It examines the economic feasibility and sustainability performance of various algae-to-liquid biofuel pathways. The analysis discusses key economic barriers and opportunities, as well as sustainability considerations, methodological gaps in current assessments, and research needs that could support future scale-up.