India will overtake Asia in biodiesel growth

China and India are set to dominate Asia's alternative fuels market, but ambitious targets, including China's 10% ethanol in 2020 and India's 20% biofuels in 2017, are doubtful.

India is likely to overtake Asia's biodiesel growth, according to Lux Research's new report, titled 'Planning for the long-term in Asia Pacific alternative fuel markets'.

Indonesia, China and Malaysia are the three dominant nations in biodiesel, each driven by challenging mandates. Indonesia is targeting 20% adoption by 2025 while Malaysia positions itself to be a dominant exporter with 143 MGY in 2015.

India's growth, however, at an impressive 18.5% compounded annual growth rate (CAGR) through 2017, will outpace the rest of the region, which will post a 3.9% CAGR through 2017.

Ethanol demand is on the rise in China, as a result of the nation's 10% blend mandate, equivalent to 3.3 billion gallons per year for 2020.

In petrol, however, ethanol will only approach only 4% in 2017, reducing the likelihood of reaching that target.