Feedstock and government security equal biofuels success
A report by Frost & Sullivan concludes that the robustness of national policies and security of feedstock supply will determine the success of native biofuels industries.
Frost & Sullivan believes that the policies and the long term renewable fuel targets set by the European Union and the US will significantly assist in establishing second generation biofuels. They will also help sustain the commercial success of such fuels up to 2020.
‘The success of such fuels depends, to a large extent, on national policies and measures towards sustainability,’ Frost & Sullivan Analyst Phani Rajkumar Chinthapalli says. ‘Ensuring access to the required feedstock for second generation biofuels is also crucial for the sustainability of the market.’
Second generation biofuels could also find an ally in the forest and food industries. The paper and pulp industries, which have low operating profits for the last 30 years, would benefit from expanding into this new market.
‘Large joint ventures and partnerships between forest and food companies and technology providers are being formed across the world. Biomass power plants can also be viewed as potential customers for the second generation biofuels technology providers,’ Chinthapalli adds.
The estimates of biomass by different organisations such as the European Environment Agency (EEA) and the International Energy Agency (IEA) at local, national and international levels have shown that there will be no lack of feedstock for second generation biofuels.
However the accessibility to this biomass will play a catalytic role in ensuring the long-term commercial viability of second generation biofuels.
‘The accessibility changes for different feedstock,’ explains Chinthapalli. ‘Agricultural waste, forest residues and energy crops have different supply models to get them to the gates of biofuels manufacturers. Frost & Sullivan believes it would be most profitable for producers to partner with forest and food industries.’
Frost & Sullivan believes that the policies and the long term renewable fuel targets set by the European Union and the US will significantly assist in establishing second generation biofuels. They will also help sustain the commercial success of such fuels up to 2020.
‘The success of such fuels depends, to a large extent, on national policies and measures towards sustainability,’ Frost & Sullivan Analyst Phani Rajkumar Chinthapalli says. ‘Ensuring access to the required feedstock for second generation biofuels is also crucial for the sustainability of the market.’
Second generation biofuels could also find an ally in the forest and food industries. The paper and pulp industries, which have low operating profits for the last 30 years, would benefit from expanding into this new market.
‘Large joint ventures and partnerships between forest and food companies and technology providers are being formed across the world. Biomass power plants can also be viewed as potential customers for the second generation biofuels technology providers,’ Chinthapalli adds.
The estimates of biomass by different organisations such as the European Environment Agency (EEA) and the International Energy Agency (IEA) at local, national and international levels have shown that there will be no lack of feedstock for second generation biofuels.
However the accessibility to this biomass will play a catalytic role in ensuring the long-term commercial viability of second generation biofuels.
‘The accessibility changes for different feedstock,’ explains Chinthapalli. ‘Agricultural waste, forest residues and energy crops have different supply models to get them to the gates of biofuels manufacturers. Frost & Sullivan believes it would be most profitable for producers to partner with forest and food industries.’
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