Web <2023> <MCK238091 Biofuels Trading> Exhibit <2> of <5>
Exhibit 2 The market for sustainable fuels includes a broad range of categories.
Overview of sustainable liquid and gas energy carriers xx% Representative market CAGR in Achieved Commitments scenario, 2030 (projected)
xx
2019 demand in million metric tons per annum
E-fuels and hydrogen- based fuels3 41%
Biofuels1 3%
Drop-in sustainable fuels2 17%
Bio-methanol4 0
Renewable and e-diesel 5
Liquid H2 0
Ethanol 84
Bio- or e-jet 0
Ammonia 0
FAME5 biodiesel 39
Bio- or e-gasoline 0
E-methanol4 0
Liquids Gases
Gaseous H2 0
Biogas 2
Bio- or e-methane6 12
Carbon-based fuels
Note: Pure hydrogen and other decarbonization vectors do not meet the “drop in” requirement. 1 Bio-based with compatibility restrictions (blend walls) with existing combustion engines. 2 Fuels that require new infrastructure or engines. 3 Fuels that are fully compatible with existing infrastructure (blended up to 100%) and that can be produced from either bio-based or hydrogen-based sources. Liquid and gaseous hydrogen only includes green and blue hydrogen. 4 Methanol can be upgraded to various drop-in fuels but is not a 100% drop-in fuel by itself.
5 Fatty acid methyl ester. 6 Renewable natural gas.
McKinsey & Company
Accelerating the journey to net zero
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