By Canadian Biomass
July 20, 2013 - Boulder, Col. – Worldwide production of biofuels is expanding more slowly than expected due to, delays in the development of advanced biofuels, the boom in fossil fuels production in key markets such as the U.S. and a decline in global biofuels investment in recent years.
By Canadian Biomass
The next wave of advanced
biofuels is nearing commercialization and conventional biofuels production is
anticipated to grow steadily between 2013 and 2023. According to a recent
report from Navigant Research, annual revenue from biofuels production will
reach $7.6 billion by 2023, with $69 billion invested in new production
capacity worldwide over the next 10 years.
derived from corn starch, coarse grains, and sugarcane, is expected to remain
the largest segment of biofuels over the next 10 years despite facing increased
scrutiny as a viable long-term alternative to fossil-based liquid fuels," says
Mackinnon Lawrence, principal research analyst with Navigant Research. "The
fastest growing segment in the industry will be advanced biofuels such as
advanced ethanol, biobutanol, and green diesel, which are moving beyond the
pilot and demonstration scale at a handful of projects across the globe."
Demand and supply-oriented
policies will continue to play a critical role in the development of the
biofuels market over the forecast period. Targeted production through
supply-focused policies is expected to surpass current obligatory and voluntary
blending policies by 2019, according to the report. Assuming that actual
production will keep pace with current supply targets, this imbalance is
expected to have a significant impact on ethanol and biodiesel blending policies
at the country level. Policy makers will likely capitalize on greater supply
and expand existing blending mandates to encourage greater integration of
biofuels into their domestic fuel mix.
The report, Market Data: Biofuels, provides
forecasts, market sizing, and market share analysis for conventional ethanol,
advanced ethanol, biobutanol, biodiesel, green diesel, synthetic gasoline, and
renewable jet fuel. The report also includes comprehensive country-level data
and forecasts for biofuels blending and supply-oriented policies. The total
volume of biofuels produced by fuel type and market penetration in retail fuel
markets is forecast through 2023, segmented by world region and key countries
and sub-regions. An Executive Summary of the report is available for free download
on the Navigant Research website.