Boulder, Colorado – Increased production and consumption of biofuels will more than double that industry’s market value in the next decade, according to Pike Research. The market intelligence firm forecasts that the global market for biofuels will increase from US$82.7 billion in 2011 to $185.3 billion in 2021.
Motivated by growing concerns over energy security, climate change and economic stagnation, at least 38 national governments worldwide have enacted blending mandates or targets to accelerate the expansion of biofuels production and consumption in the transportation sector, where biofuels hold significant potential to displace a portion of the demand for fossil fuels.
“The widespread scale-up of biofuels could radically alter the industrial and geopolitical landscapes by meeting an expanding portion of consumer demand in ground, aviation and maritime fuel markets,” said senior analyst Mackinnon Lawrence. “But with conventional biofuels constrained by social and environmental concerns, and price parity and access to financing a persistent obstacle to advanced biofuels scale-up, a number of difficult challenges must be overcome if the industry is to keep pace with emerging mandates.”
Lawrence said that while early success in Brazil, the United States and the European Union demonstrate the commercial viability of conventional biofuels, the industry is entering a new era of feedstock versatility, product neutrality and sustainability that is underpinned by the emergence of advanced conversion pathways and feedstocks. Pike Research’s analysis indicates that most industry players are confident that the production and consumption of biofuels will expand in developed and developing economics over the next decade. However, disproportionate feedstock access and use is expected to lead to an increased global trade in biofuels, with countries such as Brazil emerging as key suppliers for the world market.