Demand For Biofuels To Grow At Double-Digit Pace
According to a recent study -- World Biofuels -- from The Freedonia Group Inc., a Cleveland-based industry market research firm, growth in world biofuel demand will continue to expand at a rapid double-digit annual pace, reaching 121 million metric tons in 2014. Bioethanol will experience the greatest gains, as continued steady growth in the large North American market will be accompanied by more rapid advances in the Asia/Pacific region and Europe. Much faster growth will occur in the smaller biodiesel market as the maturation of biodiesel in Western Europe is offset by robust gains in all other regions.
Additionally, the study states demand for other biofuels such as biobutanol and renewable diesel will begin to reach commercially significant volumes. While historically not a factor, global trade in biofuels will rise rapidly going forward as large biofuel consuming countries are forced to seek additional supply, and a number of smaller developing countries seek to exploit biofuel exports.
The global bioethanol industry will continue to be dominated by the United States and Brazil, the world’s two largest consumers and producers of bioethanol. Delays in the emergence of second generation cellulosic ethanol as a viable alternative to grain-derived bioethanol will create demand for bioethanol derived from sugar cane (made mostly in Brazil) in the United States and Europe. However, over the longer term this imbalance in demand and production will decline as cellulosic ethanol capacity is brought online and other biofuels begin to compete with bioethanol in the marketplace.
For more information, or to purchase a copy of the 468-page World Biofuels report for $5,900, visit: www.freedoniagroup.com.