India will outpace Asia's growth in biodiesel: Lux Research
China and India to dominate Asia's alternative fuels market, but aggressive targets, such as China's 10% ethanol in 2020 and India's 20% biofuels in 2017, are unlikely to be met, says Lux Research
BS B2B Bureau B2B Connect | Boston, USA
Driven by aggressive mandates, government support and cost advantages, China and India - the world’s two most populous countries - dominate Asia’s alternative fuels landscape, according to Lux Research. However, even strong growth will leave these nations short of their self-imposed targets.
Ethanol is booming in China, thanks to the nation’s 10% blend mandate, equivalent to 3.3 billion gallons per year for 2020, but as total fuel demand explodes as well, ethanol will creep up to only 4% of gasoline in 2017, placing that target in doubt. India is betting on risky jatropha for biodiesel as it races to meet an aggressive 20% biofuels mandate for 2017, but biofuels will account for under 0.6% of its diesel fuel and 0.3% of its gasoline in 2017.
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Natural gas vehicles (NGVs) in China and India are driven by their lower cost – nearly half that of gasoline – and the need to cut air pollution. With a fleet of 1.5 million, India already has the sixth most NGVs in the world, mostly in public transportation. Its government-supported expansion of infrastructure aims to unlock further market share in the nation’s booming auto sector.
Japan and Korea rely heavily on advanced fuel imports. Japan continues to import biofuels, such as ETBE, to meet its 10% blend target by 2030. Similarly, demand for imported biofuel feedstock, such as soy and palm oil, remains strong in Korea. As a result, these nations focus research efforts on new types of feedstocks, like municipal solid waste (MSW) in Japan and seaweed in Korea.
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First Published: Jun 04 2014 | 6:03 PM IST