Biofuel production is a key strategy for reducing CO2 emissions globally and is expected to increase substantially in the coming decades, particularly in tropical developing countries. The adoption of sustainable biofuel production technologies that do not place large demands on agricultural or forested lands, has the potential to make a substantial contribution to decreasing greenhouse gas emissions while reducing biodiversity losses and degradation of native ecosystems resulting from high demand for land. With their high productivity per unit area and ability to grow on non-arable lands, microalgal biofuel production systems could become a major sustainable alternative to biofuel production from food crops (first-generation biofuels). However, the potential impacts of microalgal biofuels on food production, biodiversity, and carbon storage, compared to other biofuel production alternatives, are largely unknown. In the present study, the most suitable areas for siting microalgae production farms to fulfill 30% of future transport energy demands were determined within four Neotropical countries with high population densities and high importance for agricultural expansion and biodiversity conservation globally (Colombia, Ecuador, Panama, and Venezuela). These results were contrasted with the best areas for siting oil palm and sugarcane crops to fulfill the same target in future transport energy demands. Microalgal production systems offer the most sustainable alternative for future biofuel production within the Neotropics. Meeting 30% of future transport energy demands with microalgal biofuels reduced land area requirements by at least 52% compared to oil palm and sugarcane. Furthermore, microalgal biofuel production reduced direct competition with agricultural lands, biodiverse areas, and carbon-rich systems within countries, with little overlap with the biodiverse and carbon-rich rainforests. This study can guide decision making towards the identification and adoption of more sustainable biofuel production alternatives in the Neotropics, helping in avoiding unnecessary environmental impacts from biofuel expansion in the region.
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