The global top and emerging biofuels market is expected to witness significant growth over the forecast period owing to the increase in utilization of liquid biofuels in the transportation sector. The volatility in crude oil prices, lower greenhouse gas emissions from biofuels and extended use of bioethanol mixture are anticipated to boost the market growth. Also, favorable government support through programs, regulations, and policies for the development of biofuel also contribute towards the growth of the industry.
The major factors attributing towards the top and emerging biofuel market growth are the retrieval of these from biological processes and low-cost production processes using any of oil-rich crops such as oil palm, sunflower, and soy. These plants are found naturally in all the zones across the globe, thus, making biofuels the most environment-friendly energy to use.
The increasing usage of diesel engines is projected to fuel the market growth owing to the benefits associated with them such as renewable energy source, unlike petroleum-based diesel, and less amount of pollution. Other advantages are easy blending with other energy resources and oil, increased the efficiency of engines, and the less amount of sulfur content in 100% biodiesel which are anticipated to extend the life of catalytic converters.
Biofuels are comprised of solid (bio-coal, biochar, and pellet fuel), liquid (biodiesel and bioethanol), and gaseous (propane, biogas and Syngas) forms of energy. Among these forms, the liquid form is widely used in the automobile industry. According to the data provided by the UK government in 2016, 788 million liters of renewable fuel has been supplied over the globe, and over 493 million liters of this was demonstrated to meet the sustainability requirements. This 493 million liter was reported to be comprised of 58% of bioethanol, 40% of biodiesel, and 2% bio-methanol.
The top and emerging biofuel market are segmented by feedstock into first-generation feedstock, second-generation feedstock and third-generation feedstock. The first generation feedstock is regular biomass (oil-bearing feedstock, starch, and sugar), second-generation feedstock are cellulosic and third-generation feedstock are algae. The application area of this market includes the automobile and transportation industry. The increasing demand for commercial and passenger vehicles is expected to drive the top and emerging biofuels market growth. Also, the use of biofuels in the aviation sector is projected to act as an opportunity for the market.
The key regions identified in the biofuel industry are Europe, Middle East, and Africa, North America, Latin America, and Asia Pacific. North America is projected to dominate the market followed by Europe owing to the stringent government regulations and initiatives for biofuels. The increase in consumption of fuel ethanol in developed region such as the U.S anticipates the demand for biofuels.
Asia-Pacific is projected to foresee the fastest growth over the coming six years owing to the surging demand for automobiles. It is anticipated to increase the demand for biofuels in the transportation industry. Furthermore, growing number of researchers with an understanding of the potential benefits, impact, and risk related to the production of biofuel is projected to support the market growth in this region.
The major vendors in this industry are Aceites Manuelita S.A, Abengoa Bioenergy, Bajaj Hindustan Ltd., Archer Daniels Midland Company, Beckons Industries Ltd., BlueFire Ethanol Fuels Inc., Imperium Renewables, Inc., and Renewable Energy Group Inc. Other vendors include Bangchak Petroleum Public Company Ltd., Solazyme Inc., Edmonton, and Cosan S.A. Industria E Comrcio
Most of the companies are entering into agreements and collaborations so as to cater the potential market need in the developing economies. Also, robust product pipeline in this field is expected to spur the usage of top and emerging biofuels over the decade.
In February 2016, Renewable Energy Group Inc. (Biofuel producer in U.S.) has signed an agreement with Sanimax Energy, which is a U.S based company for acquiring its 20 million gallon nameplate capacity biodiesel refinery. In March 2016, Canada-based company, Edmonton, announced its plans to produce a new kind of biodiesel, commercially, which would be capable of replacing diesel completely at a lower cost than existing renewable fuels.
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The COVID-19 pandemic and subsequent halt in manufacturing activities shall have an impact on the supply availability of a variety of renewable chemicals. Furthermore, current disruption in trade shall also gravely impact the availability of chemical stocks in import-dependent countries. The report will account for Covid19 as a key market contributor.