Group 205

Manufacture of liquid biofuels

This category includes the manufacture of liquid fuels from renewable sources, such as biodiesel and bioethanol, used mainly in transport and heating. Essentially, it involves producing eco-friendly alternatives to diesel and gasoline, starting from agricultural raw materials or recycled oils. Entrepreneurs in this field contribute to the energy transition and to reducing dependence on fossil fuels.

Included Activities & Applicability

  • Manufacture of biodiesel from new and used vegetable oils
  • animal fats or other renewable raw materials Manufacture of bioethanol from cereals
  • corn
  • sugar cane
  • sugar beet or other starch/sugar-rich crops Production of liquid biogas (liquefied biomethane) for use as fuel Manufacture of liquid fuels from biomass (pyrolysis
  • gasification) Manufacture of fuel additives from renewable sources Recycling of used vegetable oils for biodiesel production

Excluded Activities & Restrictions

  • Manufacture of solid biofuels (pellets
  • wood briquettes) Manufacture of gaseous biogas (non-liquid) Production of electricity from renewable sources (other than fuels) Distribution or retail sale of biofuels Manufacture of additives based on petroleum derivatives Collection and treatment of waste (solely for biofuel manufacturing)

Detailed Analysis & Commercial Insights

Industry of Liquid Biofuels, CAEN Code 205

The liquid biofuels industry, CAEN code 205, represents a pillar of the energy transition in Romania and the European Union. In the context of climate change and commitments to reduce carbon emissions, the production of biodiesel and bioethanol from renewable agricultural resources or waste has gained significant macroeconomic importance. Romania, with its high agricultural potential, can become a key regional player in this market, capitalizing on crops such as corn, wheat, rapeseed, or sunflower. The evolution of this niche has been marked by technological advances in fermentation, transesterification, and refining processes, as well as by fluctuations in raw material prices and discriminatory tax policies between biofuels and fossil fuels. Entrepreneurs in the field face challenges related to production costs, competition from cheaper imports (e.g., from the USA or Southeast Asia), and the need to comply with strict sustainability criteria, including certification regarding greenhouse gas emission reductions along the entire value chain. Additionally, access to financing through European funds or national support schemes can be a decisive factor for developing production capacities and encouraging innovation, such as using non-food raw materials (algae, wood waste) to avoid conflict with food security. Despite these obstacles, the demand for liquid biofuels is increasing due to legal blending obligations in conventional fuels (e.g., 10% biofuel in gasoline and diesel by 2030) and consumer awareness of environmental impact. Thus, the field remains attractive for investors, with long-term prospects, but requiring adaptability to global market volatility and ever-changing regulations.