Honeywell Launches Biocrude Upgrading for Low Cost Renewable Fuels

Honeywell Unveils Tech to Turn Biomass into Low-Cost Renewable Fuels

On October 28, 2025, Honeywell announced a new technology aimed at converting biomass, like agricultural and forestry waste, into renewable fuels. This development arrives at a critical moment, particularly for industries facing intense pressure to decarbonize, such as the maritime sector. The technology, named “Biocrude Upgrading,” is designed to produce drop-in fuels compatible with existing infrastructure, potentially lowering the barrier to entry for companies looking to adopt more Sustainability energy sources.

The core of the announcement centers on a process that upgrades an intermediate product known as biocrude, also called pyrolysis oil or HTL oil, into finished, high-quality fuels. This positions Honeywell’s innovation as a crucial mid-stream solution. Instead of handling the initial conversion of raw biomass, the technology focuses on refining the unstable biocrude into a stable, usable product. This approach addresses a long-standing challenge in the biofuels industry and could streamline the path from waste collection to fuel consumption.

While the primary target is the maritime industry, the technology’s flexibility allows for the production of SAF and renewable gasoline. This versatility significantly broadens its market potential, tapping into the rapidly growing demand for cleaner aviation fuels and alternatives to conventional gasoline. By offering a solution for multiple hard-to-abate sectors, Honeywell is positioning itself as a key player in the broader energy transition.

A Closer Look at Biocrude Upgrading Technology

Honeywell’s “Biocrude Upgrading” process technology is engineered to take biocrude, derived from sources like wood chips and crop residues, and refine it into a finished product. A key logistical advantage of this model is that the initial conversion of bulky biomass into denser biocrude can happen at or near the collection site, which helps keep transportation costs down. The more stable biocrude can then be transported to major refining facilities for the final upgrading process.

The output is a “drop-in” fuel, meaning it’s chemically similar to conventional fuels and can be used without requiring costly engine modifications or new infrastructure. For the maritime sector, this means a lower-carbon alternative to the heavy fuel oil that has dominated the industry for decades. Honeywell also highlights that its renewable marine fuel has a higher energy density than many existing biofuel alternatives, allowing vessels to extend their range.

Another significant feature is the modular design of the technology. Honeywell can deliver the Biocrude Upgrading process in a prefabricated modular plant. This approach can simplify on-site construction, reduce project timelines, and mitigate risks for customers. According to Ken West, President of Honeywell Energy and Sustainability Solutions, this modular form offers savings “from the point of installation through to refining and use.”

“The maritime industry has a real need for renewable fuels that are immediately available and cost effective. Our Biocrude Upgrading processing technology can be delivered in modular form, offering savings from the point of installation through to refining and use.”

– Ken West, President of Honeywell Energy and Sustainability Solutions.

Market Context: A Solution for Uncertain Times

Honeywell’s announcement is strategically timed. The maritime industry, which accounts for about 3% of global greenhouse gas emissions, is currently navigating significant regulatory uncertainty. The recent postponement of the International Maritime Organization’s (IMO) Net-Zero Framework has left many shipowners hesitant to make large capital investments in new technologies or vessels. In this environment, cost-effective, drop-in solutions that work with the existing fleet are highly attractive.

Beyond the maritime sector, the market for Sustainable Aviation Fuel (SAF) is projected to experience massive growth. Various forecasts point to a multi-billion dollar market within the next decade, driven by environmental regulations, airline sustainability goals, and growing consumer demand for greener travel. Biofuels are currently the dominant pathway for SAF production due to their commercial readiness. Honeywell’s technology, capable of producing SAF from biocrude, is well-positioned to capitalize on this expanding market.

The renewable gasoline market, while more complex, also presents an opportunity. Fuel ethanol, primarily made from biomass, is already a major component of the U.S. gasoline supply, where it is used for blending. Honeywell’s ability to produce a renewable naphtha suitable for gasoline blending allows it to tap into this established market. The emphasis on “drop-in” compatibility remains a key selling point across all targeted sectors.

Conclusion: Bridging the Gap in the Energy Transition

Honeywell’s Biocrude Upgrading technology represents a pragmatic and timely solution for industries struggling with decarbonization. By focusing on a flexible, modular, and cost-effective “drop-in” fuel, the company addresses the immediate needs of sectors like maritime and aviation without demanding a complete overhaul of existing infrastructure. The ability to use abundant and inexpensive feedstocks like agricultural and forestry waste further strengthens its economic viability.

This innovation is not just about a new product; it’s about providing a crucial link in the biofuel supply chain. By solving the challenge of refining unstable biocrude, Honeywell’s technology could unlock greater potential for biomass as a reliable energy source. As regulatory pressures and market demands for sustainable alternatives continue to grow, such versatile and ready-to-implement technologies will likely play a pivotal role in the global transition to a lower-carbon economy.

FAQ

Question: What is Honeywell’s new technology?
Answer: It is a “Biocrude Upgrading” process technology that converts biocrude, derived from biomass like wood chips and crop residues, into low-carbon renewable fuels.

Question: What types of fuel can it produce?
Answer: The technology can be adjusted to produce low-carbon marine fuel, Sustainable Aviation Fuel (SAF), and renewable gasoline (in the form of renewable naphtha for blending).

Question: What makes this technology a “drop-in” fuel?
Answer: The resulting fuels are compatible with existing engines and infrastructure, meaning they can be used without requiring costly modifications or upgrades for vessels, aircraft, or vehicles.

Sources

• Honeywell Press Release