Annual biofuel demand forecasted at 51 billion gallons by 2022
In the past 10 years, biofuels have become a promising solution to solving the energy security, environmental, and economic challenges associated with petroleum dependency. The global biofuels industry is now on the verge of entering a new phase of development focused on advanced and drop-in biofuels. According to a new report from Navigant Research, global demand for biofuels for road transportation will grow from 32.4 billion gallons in 2013 to 51.1 billion by 2022.
“Developed nations in Europe and North America are beginning to see declines in liquid fuels consumption from the road transportation sector, due to increased vehicle fuel efficiency and growing interest in alternative fuel vehicles,” said Scott Shepard, research analyst with Navigant Research. “The continued growth of conventional biofuels relies either on policies increasing biofuel blend requirements, or on growing vehicle markets in the Asia Pacific region. Meanwhile, advances in biofuels derived from nonfood feedstocks, and biofuels that require no changes to infrastructure or vehicles, promise to significantly alter the petroleum industry landscape.”
Petroleum consumption by the road transportation sector in the U.S. is expected to peak in 2016, according to the report, as biofuels grow to account for 8.7 percent of demand. Major stakeholders, including the airline industry and the U.S. Department of Defense, stand to benefit greatly from advances in drop-in biofuels and will continue to spur development of the technology, driving the price per gallon down to competitive levels.
The report, “Biofuels for Transportation Markets,” analyzes the emerging markets and future growth opportunities for biofuels, including ethanol, biodiesel and drop-in biofuels. The report provides an analysis of the major demand drivers and market challenges related to biofuels technologies. Global market forecasts of vehicle sales and vehicles in use, along with liquid fuels consumption, station installations, and revenue extend through 2022. The report also examines the key technologies associated with biofuels, as well as the competitive landscape. An executive summary of the report is available for free download on the Navigant Research website.