BCG White Paper: The Shock That Reframed Energy Security and the Importance of Biofuels
A new BCG white paper argues that a recent energy supply disruption through the Strait of Hormuz has reframed biofuels from a decarbonization lever into a core energy-security tool. The authors note the corridor is a chokepoint for roughly 20% of global LNG trade, with impacts cascading across oil, LNG, petrochemicals, fertilizers, and transport fuels.
The paper makes the case that biofuels can serve as a practical shock absorber within a broader resilience portfolio, reducing marginal import exposure, creating domestic price anchors, and improving crisis resilience, and suggests this changes how the biofuel premium should be valued.