Advanced biofuel production will reach 1.7 billion gallons by 2017, report predicts

Predictions suggest that by 2017, up to 180 companies are expected to produce 1.7 billion gallons of advanced biofuel, doubling current capacity, according to a new market report released by the national nonpartisan business group Environmental Entrepreneurs (E2).

North America's advanced biofuel industry reached over 800 million gallons in production capacity in 2014, up from the previous year and almost double the capacity in 2011.

This figure is the highest capacity since E2 released its first advanced biofuels market report in 2011, and is 13 million gallons more than the 787 million gallons produced in 2013.

The report, E2 Advanced Biofuel Market Report 2014, also shows how advanced biofuels are on track to meet targeted emission reductions for clean fuels standards in both California and Oregon as well as showing evidence that Washington state should quickly develop a clean fuels standard of its own, something that is possible according to the recently announced carbon plan.

'The advanced biofuel industry is meeting the growing demand for cleaner-burning transportation fuels,' said Mary Solecki, Western states advocate/report co-author, E2.

The report comes at a time when various initiatives, especially in the Pacific Northwest and in California, are in the works or are under review:

• In Oregon, the state's Environmental Quality Commission meets on 7-8 January. Later in the year the legislature will decide whether or not to remove the sunset date for the Clean Fuels Programme, which is expected to save Oregon consumers and businesses up to $1.6 billion (€1.35 billion) in fuel costs.

• In Washington state, Governor Jay Inslee has asked the state's Department of Ecology to recommend a proposed clean-fuel standard that would increase the use of advanced biofuel and reduce the billions of dollars Washington spends annually on out-of-state oil.

• In California, the Low Carbon Fuel Standard (LCFS) has been in place since 2009 and has lowered carbon emissions since 2011, but last year during a re-adoption period the LCFS was left unchanged at 2013 levels, forcing a number of facilities to delay or idle production.

• In Washington, DC, the Environmental Protection Agency (EPA) in 2015 is expected to finalise federal renewable fuel requirements, after delaying its announcement on the Renewable Fuel Standard (RFS) through 2014. The report states that regulatory uncertainty caused by the delay reined in 2014's production capacity and investment levels. The report reveals that since 2007 the private sector has invested $4 billion in active advanced biofuel producers and companies along the advanced biofuel value chain, with over $200 million provided in the last twelve months. An additional $848 million in grants have also been distributed to advanced biofuel producers since 2007.