Global biofuels demand slows down

As demand coming from the US slows, biofuels growth in the 2013-18 period will be modest compared to the 2008-13 period, says the Freedonia Group report.

Asia, the Africa/Mideast region and Central and South America will drive global biofuels demand to 115 million tonnes in 2018, up 18.7 million tonnes from 2013 figures, reports the Freedonia Group's new study, 'World Biofuels'.

The US – the world's largest market – is set to stall, which will limit increases in bioethanol demand overall. Biodiesel, on the other hand, will continue to grow, as it is supported by the development of biofuel mandates in various developing countries and by the European Union's renewable transport fuel target for 2020.

'Concerns about the use of food crops for biofuel production have caused the focus in North America and the European Union (EU) to shift toward advanced second and third generation biofuels derived from waste materials and nonedible, sustainable biomass, which in turn will drive robust growth for other biofuels such as renewable diesel and biobutanol,' says Nick Cunningham, analyst, Freedonia.