Liquid
Biofuel Market: Introduction
The
global liquid biofuel market was valued at US$ 114 Bn in 2018 and is
anticipated to expand at a CAGR of ~11% during
the forecast period. Among types, the ethanol segment accounted for a major
share of the global liquid biofuel market in 2018. Ethanol is a biofuel
with high octane number, which is produced by fermentation of corn, potatoes,
grain, sugar beet, sugarcane, and vegetable residues. The U.S. and Brazil are
leading producers of ethanol across the globe. Both countries collectively
accounted about 84% share of the world’s ethanol production in 2018. Among feedstocks,
the starch crops segment held a significant share of the global liquid biofuel
market in 2018. In
terms of process, the fermentation segment held a major share of the global
liquid biofuel market in 2018. Fermentation
is a process largely used for production of ethanol. Based on application, the
transportation segment accounted for a leading share of the global liquid
biofuel market in 2018. Stringent
government regulations regarding carbon emissions across the globe are boosting
the demand for alternative fuels. North America is estimated to offer immense
growth potential to the liquid biofuel market in the next few years.
Key
Drivers and Restraints of Liquid Biofuel Market
Increasing
demand for alternative fuels from the transportation sector is a major factor
driving the global liquid biofuel market. Liquid biofuels are largely used as
substitutes for petroleum-based fuels and they are considered useful to improve
fuel security; to mitigate climate change; and to support infrastructure
development. In order to achieve compliance with emission targets set by
various governments to slow down global warming and to improve security of
energy supply, an increased contribution of both conventional and advanced
biofuels would be required during the forecast period.
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Supply
security and risk abatement of conventional oil is another major factor
positively influencing the global liquid biofuel market. Crude oil reserves are
mostly concentrated in countries of Middle East & Africa and North America.
However, with the rising demand in industrialized nations as well as in
developing countries such as China and India, supply pressure on these reserves
increases. This can become a basis for conflicts between oil-producing nations
aiming to secure the remaining reserves for themselves in the near future. In
this situation, diversification of energy sources is an option for risk
abatement. Liquid biofuel production can reduce the dependency on conventional
fuels for transportation, cooking, and other conventional uses.
High
retrofit costs is a major factor hampering the global liquid biofuel market.
Replacement of existing diesel engines and systems powered by conventional
fossil fuels with biofuel systems can be a cost-intensive process, as the
entire or partial upgrade is required to be carried out without affecting the
operational hours.
North
America a Highly Lucrative Region of Liquid Biofuel Market
North
America dominates the global liquid biofuel market. Around 45% of liquid
biofuels are produced in the region. The U.S. is the world’s leading producer
of ethanol. It produced around 16
billion gallons or nearly 60 billion liters
of ethanol in 2018.
According to the U.S. Energy Information Administration’s (EIA) U.S. Fuel
Ethanol Plant Production Capacity report, ethanol production capacity in the
U.S. totaled 16.9
billion gallons per year or 1.1 million barrels
per day (b/d) in 2019. In 2018, the
total consumption of ethanol in the U.S. rose to a record high of 16.2 billion gallons, 300 million gallons
higher over that in 2017,
driven mostly by record exports of over 1.6 billion gallons. Brazil and
Argentina are major countries of the liquid biofuel market in Latin America.
Both countries account for 90% production
of liquid biofuels in Latin America.
More Trending Reports
Liquid
Biofuel Market: Key Developments
In June 2018, Archer
Daniels Midland Company announced collaboration with DuPont Industrial
Biosciences to develop, produce, and market the cellulase enzyme for use in grain-based
ethanol plants. In September
2018, POET Biorefining Marion opened an expanded facility with
the capacity of 80
million gallons. With this expansion, the company’s annual
capacity reached 150
million gallons of clean-burning biofuel and 360,000 tons of
high-protein animal feed per year.
Competition
Landscape of Liquid Biofuel Market
The
global liquid biofuel market is highly fragmented, with the presence of a large
number of players. High capital investments, strong brand recognition, and
strong position of established players pose barriers to the entry of new
players operating in the global liquid biofuel market. Key players operating in
the global liquid biofuel market are Fulcrum BioEnergy, Archer Daniels Midland Company, RB
FUELS, POET, LLC, Cargill, Incorporated, Bangchak Corporation Public Company
Limited, Renewable Energy Group, Inc., Bunge, Green Biologics Limited,
CropEnergies AG, Algenol, Emami Agrotech Limited, Eniven Group, World Energy
Alternatives LLC, and Bio-Oils Energy.
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