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US market for biofuels is maturing

Published by
Hydrocarbon Engineering,

The US market for motor vehicle biofuels is forecast to total 395 million bbls in 2020, representing annual increases of 0.7% from 382 million bbls in 2015.

Advances will primarily stem from regulatory quotas for biofuel in the US fuel supply. At the same time, rising crude oil prices will incentivise consumers to purchase bioethanol blends beyond those mandated by the government.

However, further increases in biofuel blend concentrations will be restrained by motor vehicle specifications and a limited infrastructure for distributing these fuels.

These findings are featured in 'Motor Vehicle Biofuels: United States', a report recently released by Freedonia Focus Reports, a division of The Freedonia Group. The full report forecasts US motor vehicle biofuel demand and production in bbls to 2020. Total demand and production are segmented by type in terms of:

  • Bioethanol.
  • Biodiesel.
  • Other biofuels such as renewable diesel.

The report covers biofuels utilised in motor vehicle transportation, excluding use of biofuels for other purposes such as heating fuels. Furthermore, biogas – a methane-rich fuel derived from the breakdown of organic matter – is not included in demand and production totals. Demand figures exclude the fossil fuel portion of blended fuels. To illustrate historical trends, total demand, total production, and the various segments are provided in annual series from 2005 - 2015.

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