A differentiation is needed between first, second and third generation biofuels. The distinction between them is usually made based on three characteristics: the technology used, the use of the edible or non-edible part of the feedstock and the CO2 reduction potential. Here we adhere to the definitions published by IUCN NL (2008).
First generation biofuels are transport fuels produced using conventional technology from feedstock like wheat, corn, sugar, palm oil and sunflower oil, i.e. agricultural products which are also used as food and feed. Countries use different crops. The EU prefers rapeseed, wheat and sugar beet; the USA use mainly corn and soybeans; Brazil’s biofuel consumption is largely based on sugar cane and in Southeast Asia it is palm oil. Currently only first generation biofuels are commercially viable.
Second generation biofuels are produced using more advanced conversion technologies that allow the use of non-edible materials derived from plants (mostly lingo-cellulosic parts, like stalks and straw, but also woodchips). Their CO2 performance tends to be better than that of first generation biofuels because all the source material, and potentially also organic waste material, is used. One concern related to second generation biofuel is decreasing soil fertility after removal of all organic matter from the land, which may affect water regulation and nutrient content negatively. Technological breakthroughs and considerable investments in infrastructure are required to make second generation biofuel production commercially viable. Estimates suggest that the technology will be commercially available in about a decade.
Third generation biofuels generally refer to the production of ethanol from plants that were modified for easier processing (e.g. poplar with lower lignin content), and the production of biodiesel from algae. These techniques are expected to have a better CO2 performance than first and second generation biofuels.
The term agrofuels refers to biofuels for which agricultural lands have been used. The Agrofuels Platform decided to focus its work on agrofuels because, at the moment, virtually all commercially produced biofuels are produced from crops grown on agricultural lands. The term agrofuels includes so-called first-generation biofuels made from oil palm and sugarcane, as well as second generation biofuels made from Jatropha, when grown on agricultural lands.