‘Significant’ growth in biofuels for transportation reported

A new report by Navigant Research has revealed a sharp rise in the consumption of biofuels across the global road transportation sector.

The research body forecasts worldwide consumption in the sector will grow from more than the 32.4 billion gallons per year recorded in 2013 to more than 51.1 billion by 2022.

‘An increase in ethanol production capacity in the US and Brazil, and biodiesel in Europe, over the last 10 years has resulted in biofuels gaining a foothold in the global market for liquid fuels,’ a Navigant statement reads. ‘The global biofuels industry is now on the verge of entering a new phase of development focused on advanced and drop-in biofuels.’

Navigant further believes those kinds of conventional biofuels are the most near-term solutions to displacing petroleum-based fuel consumption in the road transportation sector.

‘Further advances in both biofuels derived from non-food feedstocks and biofuels that are drop-in-capable promise to significantly alter the petroleum industry landscape. Governments and industries are looking at ways to replace the whole barrel of oil by developing biofuels for all forms of transportation: road, aviation, and maritime,’ the statement continued.

‘Despite the huge potential, however, biofuels are still challenged by issues such as feedstock access, supply chain infrastructure development, and achieving price parity with the well-established petroleum industry.’

The report analyses the emerging markets and future growth opportunities for biofuels, including ethanol, biodiesel, and drop-in biofuels, while providing an analysis of the major demand drivers and market challenges related to biofuels technologies.