 "Global biofuels capacity to reach 61 bn gallons per year in 2018")
Global biofuels capacity will grow to 61 billion gallons per year (BGY) in 2018, up from 55.1 BGY in 2014. Ethanol and biodiesel will continue to dominate with 96 percent of the capacity in 2018, but novel fuels and novel feedstocks will be major drivers of capacity growth, according to Lux Research.
Novel fuels and novel feedstocks will grow at a rapid 27% and 16% compound annual growth rate (CAGR), respectively, through 2018. Ethanol and biodiesel will grow at a slower 2% rate but will reach capacities of 40 BGY and 19 BGY, respectively.
“While ethanol and biodiesel dominate global biofuel capacity today, limits on their growth mean that novel fuels like renewable diesel, biojet fuel and biocrude are crucial to the future of the industry. Producers also need to tap into novel feedstocks like waste oils, non-edible biomass, and municipal solid waste to push the industry beyond food-vs.-fuels competition,” said Victor Oh, Lux Research Associate and lead author of the report titled, ‘Biofuels outlook 2018: Highlighting emerging producers and next-generation biofuels’.
With a 64 percent share of global biofuels capacity, the Americas are a dominant force. The region, led by the US and Brazil, also leads in utilisation of global production capacity with 86 percent, much higher than the global average of 68 percent in 2014.
“China, Indonesia and Thailand in Asia; Colombia and Argentina in the Americas; and Portugal, Poland and France in Europe are the biggest emerging production centres for biofuels after the US and Brazil,” said Lux Research in a press release.
Novel fuels and novel feedstocks will grow at a rapid 27% and 16% compound annual growth rate (CAGR), respectively, through 2018. Ethanol and biodiesel will grow at a slower 2% rate but will reach capacities of 40 BGY and 19 BGY, respectively.
“While ethanol and biodiesel dominate global biofuel capacity today, limits on their growth mean that novel fuels like renewable diesel, biojet fuel and biocrude are crucial to the future of the industry. Producers also need to tap into novel feedstocks like waste oils, non-edible biomass, and municipal solid waste to push the industry beyond food-vs.-fuels competition,” said Victor Oh, Lux Research Associate and lead author of the report titled, ‘Biofuels outlook 2018: Highlighting emerging producers and next-generation biofuels’.
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According to Lux Research, with a 52 percent share, biodiesel made from novel feedstock, specifically waste oils, will lead novel fuels capacity in 2018. Cellulosic ethanol and renewable diesel follow with 19 percent and 18 percent, respectively.
With a 64 percent share of global biofuels capacity, the Americas are a dominant force. The region, led by the US and Brazil, also leads in utilisation of global production capacity with 86 percent, much higher than the global average of 68 percent in 2014.
“China, Indonesia and Thailand in Asia; Colombia and Argentina in the Americas; and Portugal, Poland and France in Europe are the biggest emerging production centres for biofuels after the US and Brazil,” said Lux Research in a press release.