BCC new research has revealed in its latest report, ‘The Global Markets and Technologies for Biofuel Enzymes’ that low cost cellulosic ethanol has been produced using techniques that have significantly lowered the cost of biofuel production, which in turn has significantly improved its market growth.
A whole variety of types of feedstock are currently under consideration for their role in producing alternative fuel, of which biofuel enzymes play a vital part. This report has analysed the future prospects for the biofuel enzymes market, which include cellulose, amylase, lipase, xylanase, alongside other enzymes such as lysomax, protease and FermaSure.
The global market for biofuel enzymes has estimated their worth to reach US$652.1 million in 2015 and US$1.1 billion in 2020, reflecting a five year compound annual growth rate (CAGR) of 10.4%. The US has been projected the highest five year CAGR at 11.3%, earning US$355.7 million through 2020.
The emerging market, currently represented by Brazil, Thailand, China, Japan, India, Australia and South Africa, is predicted to create revenues to total US$389.7 million through 2020. The US falls behind the emerging market countries but is certainly ahead of countries in Europe, due to the presence of novel enzymes and techniques as well as generous government aid and support. The European region is also flourishing due the EU’s biofuel mandate and the launch of enterprising products and biofuel plants.
The increased production of cellulosic ethanol could be considered a key factor in the development of the biofuels market. Along with second generation feedstock, this development has streamlined the complexity of cellulosic ethanol production and the production of other enzymes.
"As starch based ethanol comes under first generation feedstock, the production in recent years has shifted to cellulosic ethanol, which uses second generation feedstock as raw matter. Researchers have produced low cost cellulosic ethanol via innovative techniques. Cellulosic ethanol can now be produced easily with the help of novel enzymes, an enzyme cocktail and pretreatment process," says BCC Research Analyst Shalini Dewan. "For example, Codexis Inc.'s launch of novel enzymes, as well as the use of enzyme cocktail mix for lignocellulosic matter, has helped to make second generation biofuel a reality and cellulosic ethanol production cost effective."
Agricultural economists from Purdue University have examined how the development of corn stover for cellulosic ethanol could affect corn and soybean markets and the traditional corn-soybean crop rotation in the US in the new research report, ‘‘Development of Corn Stover Biofuel: Impacts on Corn and Soybean Markets and Crop Rotation’. Corn stover is considered a ‘second generation’ biofuel feedstock because transforms the cellulosic material in the stover to biofuels rather than using the conventional method of corn starch. “If second generation biofuels became economically viable and a massive amount of biofuels were produced from agricultural residue, this could have a major impact on the agricultural commodity markets,” said Energy Policy Specialist Wallace Tyner, the James and Lois Ackerman Professor of Agricultural Economics and a co-author of the research report.
“The development of second generation biofuels is critically important to advancing the biofuels industry,” Farzad Taheripour, a Research Associate Professor, said. “First generation biofuels, produced from food crops, will not be able to replace a large portion of the oil based liquid fuels because a rapid expansion in these biofuels could have adverse impacts on our food supply.” The research projected that if there was a viable corn stover market with stover at a farm price of US$85.40/t, a large proportion of farmers would find it profitable to harvest stover. If creating biofuel from corn stover became vastly profitable, due to market forces or government supports, then farmers would be forced to consider revenue from both stover and corn, according to the university research.
Edited from various sources by Francesca Brindle.
Read the article online at: https://www.hydrocarbonengineering.com/clean-fuels/30112015/biofuels-market-growing-due-to-new-feedstock-capabilities-bcc-reports-1836/