According to a recent research report by TechNavio, the key players in the global biodiesel market are Cosan, Diester Industrie, INEOS, Neste Oil and Renewable Energy Group. Other prominent vendors include Archer Daniel Midland Co., Louis Dreyfus and Petrobras.
The growth of the biodiesel market is primarily dependent on the availability, quality, and yield of feedstock because the source material accounts fore more than 80% of the cost of biodiesel production.
On the other hand, the report indicated that biogas is gaining traction as a versatile energy carrier with significant potential to meet growing demand in power, heating and fuel markets. It holds an advantageous position in terms of resource efficiency and from an environmental and socioeconomic perspective. Biogas can be purified and upgraded to a quality similar to that of natural gas so that it can be input into natural gas grids.
The outlook for the industry
The report forecasts that the biodiesel industry will grow at a rate of 8/1% CAGR over the period 2014 – 2018. Commenting on the findings, an analyst from Technavio’s team said: “One emerging trend in the market is the need to comply with environmental regulations. Many investors worldwide are investing in the market because biodiesel is a clean fuel.
“Biodiesel is gaining importance as a non-toxic and carbon-neutral fuel across the world. According to the EPA, it reduces greenhouse gas emissions by 57 – 86% compared to gasoline and diesel. Biodiesel is the only alternative fuel to comply with the EPA’s rigorous emissions and health effects study under the Clean Air Act.
“The environmental targets set by various countries to control carbon dioxide emissions are promoting the adoption of alternative fuel technologies. Biodiesel successfully passes the criteria for lower emissions and a reduced carbon footprint not only in the US, but in all other parts of the world”.
According to the report, the advantage of using biodiesel over diesel is one of the prominent drivers in the market. In contrast, the greatest challenge to the market is the threat to food security. Many farmers are starting to cultivate feedstock for biodiesel over other agricultural commodities, resulting in food price increases.
Edited from various sources by Emma McAleavey.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/28072014/global-biodiesel-market-1015/