Report: 12 billion gallons of biodiesel by 2020
February 23, 2010
Posted March 23, 2010
GlobalData, a global market intelligence services company, recently published a report titled, "Global Biodiesel Market Analysis and Forecasts to 2020."
Worldwide biodiesel production increased from 253.34 million gallons in 2001 to 4.16 billion gallons in 2009, at a compound annual growth rate (CAGR) of 41.9 percent. Supported by governments to increase energy independence and meet rising energy demand, the biodiesel market is expected to produce 11.96 billion gallons of biodiesel in 2020, representing a CAGR of 10.1 percent during 2009 to 2020.
Europe is the leading biodiesel market with a production share of 49.8 percent, followed by the Americas with a production share of 32.8 percent, and Asia Pacific with a share of 4.4 percent in 2009. European share in biodiesel production has been declining since 2001 while the share of Americas and Asia Pacific increased. The top five biodiesel producing countries in the world are Germany, the U.S., France, Argentina and Brazil. All of these countries together produce 68.4 percent of the world's total biodiesel. Australia is the largest producer of biodiesel in Asia Pacific, followed by China and India.
The U.S. is the second largest producer of biodiesel in the world, producing 17.7 percent of the world's biodiesel in 2009. The biodiesel market in the U.S. is expected to reach 745.5 million gallons in 2010 and 1.7 billion gallons in 2020. The U.S. government has been promoting the production and use of biodiesel through various incentives and policy measures. The revised renewable fuel standard (RFS2) program has been formulated to meet the requirements of the Energy Independence and Security Act of 2007. RFS2 requires the use of 11.1 billion gallons of renewable fuels in 2009, which will continue to increase thereafter to reach 36 billion gallons by 2022. According to RFS2, biodiesel is categorized in the biomass-based diesel category and a minimum of 1 billion gallons annually is to be blended into U.S. diesel fuel supplies by 2012.
The German biodiesel market is facing a bleak outlook due to the imposition of taxes that have made biofuels too expensive for its consumers. Though the country is the largest producer of biodiesel in Europe, the future for the market looks weak. This is mainly due to the taxes the German government has imposed on green fuels. Another factor that has contributed to the negative outlook of the German biodiesel market is the generous export subsidies received by the U.S. producers. The EU has now imposed an import tariff on US biodiesel imports to protect the European market. The country has reduced the blending target to 6.3 percent in 2010 from 6.8 percent as set out previously in the plan to cut carbon dioxide emissions, although the specific blending mandates for biodiesel will remained unchanged until 2014.
China has become the world's largest automotive market in terms of units sold, surpassing the U.S. This, coupled with the country's concern for energy security, has led to increased interest from the government in developing the alternative fuel vehicle market in the country. In 2009, the government of China provided a 10 billion yuan ($1.5 billion) subsidy for three years to automakers who upgrade their technology and develop alternative fuel vehicles. This stimulus package will result in rising activity in the Chinese biofuels sector.
"Global Biodiesel Market Analysis and Forecasts to 2020" is the latest research from GlobalData. This report gives an in-depth analysis of the global biodiesel market and provides forecasts up to 2020. The research analyzes key trends, major issues and growth opportunities in the global biodiesel market. Market share by production capacity, elaborate profiling of major industry participants and information on major present and upcoming production facilities provide insight into the competitive scenario in the global biodiesel industry. This coupled with information on important news and deals provide a comprehensive understanding of the market. Information on the regulatory framework and key policies governing the industry has also been dealt with in detail.
GlobalData, a global market intelligence services company, recently published a report titled, "Global Biodiesel Market Analysis and Forecasts to 2020."
Worldwide biodiesel production increased from 253.34 million gallons in 2001 to 4.16 billion gallons in 2009, at a compound annual growth rate (CAGR) of 41.9 percent. Supported by governments to increase energy independence and meet rising energy demand, the biodiesel market is expected to produce 11.96 billion gallons of biodiesel in 2020, representing a CAGR of 10.1 percent during 2009 to 2020.
Europe is the leading biodiesel market with a production share of 49.8 percent, followed by the Americas with a production share of 32.8 percent, and Asia Pacific with a share of 4.4 percent in 2009. European share in biodiesel production has been declining since 2001 while the share of Americas and Asia Pacific increased. The top five biodiesel producing countries in the world are Germany, the U.S., France, Argentina and Brazil. All of these countries together produce 68.4 percent of the world's total biodiesel. Australia is the largest producer of biodiesel in Asia Pacific, followed by China and India.
The U.S. is the second largest producer of biodiesel in the world, producing 17.7 percent of the world's biodiesel in 2009. The biodiesel market in the U.S. is expected to reach 745.5 million gallons in 2010 and 1.7 billion gallons in 2020. The U.S. government has been promoting the production and use of biodiesel through various incentives and policy measures. The revised renewable fuel standard (RFS2) program has been formulated to meet the requirements of the Energy Independence and Security Act of 2007. RFS2 requires the use of 11.1 billion gallons of renewable fuels in 2009, which will continue to increase thereafter to reach 36 billion gallons by 2022. According to RFS2, biodiesel is categorized in the biomass-based diesel category and a minimum of 1 billion gallons annually is to be blended into U.S. diesel fuel supplies by 2012.
The German biodiesel market is facing a bleak outlook due to the imposition of taxes that have made biofuels too expensive for its consumers. Though the country is the largest producer of biodiesel in Europe, the future for the market looks weak. This is mainly due to the taxes the German government has imposed on green fuels. Another factor that has contributed to the negative outlook of the German biodiesel market is the generous export subsidies received by the U.S. producers. The EU has now imposed an import tariff on US biodiesel imports to protect the European market. The country has reduced the blending target to 6.3 percent in 2010 from 6.8 percent as set out previously in the plan to cut carbon dioxide emissions, although the specific blending mandates for biodiesel will remained unchanged until 2014.
China has become the world's largest automotive market in terms of units sold, surpassing the U.S. This, coupled with the country's concern for energy security, has led to increased interest from the government in developing the alternative fuel vehicle market in the country. In 2009, the government of China provided a 10 billion yuan ($1.5 billion) subsidy for three years to automakers who upgrade their technology and develop alternative fuel vehicles. This stimulus package will result in rising activity in the Chinese biofuels sector.
"Global Biodiesel Market Analysis and Forecasts to 2020" is the latest research from GlobalData. This report gives an in-depth analysis of the global biodiesel market and provides forecasts up to 2020. The research analyzes key trends, major issues and growth opportunities in the global biodiesel market. Market share by production capacity, elaborate profiling of major industry participants and information on major present and upcoming production facilities provide insight into the competitive scenario in the global biodiesel industry. This coupled with information on important news and deals provide a comprehensive understanding of the market. Information on the regulatory framework and key policies governing the industry has also been dealt with in detail.
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