Biofuels potential to reach €178 billion by 2020
The global potential for the biofuels market will reach up to $247 billion (€178 billion) in sales by 2020, indicates a study released by market researcher Pike Research.
The forecast predicts the industry to ride the wave of current setbacks it faces to triple its predicted worth of $76 billion by 2010 in just ten years.
Pike highlights that the biofuels industry’s growth is currently being stunted by concerns of the limited availability of inexpensive feedstocks and the age-old ethical debate of using the feedstock for fuel rather than food.
Due to the volatility of petroleum prices and restricted spending due to the global recession governments have put their support for the industry on the backburner.
Clint Wheelock, MD of Pike Research, claims that ‘the near term, the biofuels market looks like a train wreck. The economics of ethanol and biodiesel are not yet competitive with petro fuels, and governments have pulled back some of their support.’
Despite this the report forecasts the coming years to undergo three key waves of next generation biodiesel.
Firstly the market is to expect fuels based on waste greases by 2010.
The second big wave is expected to be the introduction of jatropha-based fuels to the market in 2014, and the final wave will see algae-based biodiesel, which will achieve commercial availability in 2012 with deeper effects on the market anticipated in 2016.
‘Over the next 10 to 15 years the outlook remains very positive. The long-term commitment of national governments to foster robust biofuels markets remains solid, and technological advances and economies of scale will dramatically improve the economics of biofuels versus petroleum,’ predicts Wheelock.
Pike Research’s report analyses the complexities of the biofuels market, examining key technologies that will drive the future of the industry to include second and third generation feedstocks and advanced biorefining techniques.
The forecast predicts the industry to ride the wave of current setbacks it faces to triple its predicted worth of $76 billion by 2010 in just ten years.
Pike highlights that the biofuels industry’s growth is currently being stunted by concerns of the limited availability of inexpensive feedstocks and the age-old ethical debate of using the feedstock for fuel rather than food.
Due to the volatility of petroleum prices and restricted spending due to the global recession governments have put their support for the industry on the backburner.
Clint Wheelock, MD of Pike Research, claims that ‘the near term, the biofuels market looks like a train wreck. The economics of ethanol and biodiesel are not yet competitive with petro fuels, and governments have pulled back some of their support.’
Despite this the report forecasts the coming years to undergo three key waves of next generation biodiesel.
Firstly the market is to expect fuels based on waste greases by 2010.
The second big wave is expected to be the introduction of jatropha-based fuels to the market in 2014, and the final wave will see algae-based biodiesel, which will achieve commercial availability in 2012 with deeper effects on the market anticipated in 2016.
‘Over the next 10 to 15 years the outlook remains very positive. The long-term commitment of national governments to foster robust biofuels markets remains solid, and technological advances and economies of scale will dramatically improve the economics of biofuels versus petroleum,’ predicts Wheelock.
Pike Research’s report analyses the complexities of the biofuels market, examining key technologies that will drive the future of the industry to include second and third generation feedstocks and advanced biorefining techniques.
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