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Stratas Advisors advise automakers to expect biodiesel blends

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Hydrocarbon Engineering,


According to Stratas Advisors, like government leaders around the world, candidates in the 2016 US presidential campaign have pandered to opposing constituencies surrounding the future of biofuels, agricultural versus petroleum, environmentalists versus industrialists. However, refiners, automakers, governments and investors want a realistic view of how biofuel consumption will evolve in the coming years.

Stratas Advisors' Global Biofuels Outlook is a regional and country level forecast through 2035 of policy, prices, supply and demand. This forecast has a globally balanced assessment from Stratas Advisors' petroleum and alternative fuels services. The Global Biofuels Outlook shows global ethanol usage expanding the gasoline pool by nearly 9% and biodiesel usage expanding the diesel pool to 3% by 2035.

"Automakers should ready themselves for higher biodiesel blends. Biodiesel use will increasingly displace diesel use in first world nations," said Paul Niznik, Stratas Advisors, Biofuels Manager. "But despite high targets for biofuels use, developed nations will struggle to increase ethanol blending."

Stratas Advisors expects global ethanol demand to increase gradually between 2015 and 2035. Growth will be driven by strong demand in Latin America and Asia. Latin America will become the largest ethanol producing and consuming region by 2030. North America and Europe will see a decline in the same timeframe.

As for the global biodiesel demand – it is predicted to almost double between 2015 and 2035 on strong growth in all regions except Europe. Stratas Advisors forecasts that Asia Pacific will become the largest biodiesel producing and consuming region by 2025. Biodiesel exports from Asia, with a small contribution from Latin America, will meet demand in Europe and North America.

"Biofuels prices in the short term will need to recover to help global producers stay solvent and meet demand in an increasingly challenging international market," said Maëlle Soares Pinto, Stratas Advisors Director, Global Biofuels.


Adapted from press release by Francesca Brindle

Read the article online at: https://www.hydrocarbonengineering.com/clean-fuels/18032016/stratas-advisors-advise-automakers-to-expect-more-biodiesel-blends-2800/


 

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