According to a new report by Allied Market Research titled “Global Second Generation Biofuels -Size, Industry Analysis, Trends, Opportunities, Growth and Forecast, 2013 – 2020”, the global second generation biofuels (Advanced Biofuels) market would reach $23.9 billion by 2020, registering a CAGR (Compound Annual Growth Rate) of 49.4% during 2014 – 2020.
Currently, biodiesel garners the largest market share; however, the latest and the most commercially viable cellulosic ethanol would surpass biodiesel and eventually lead the market by 2020. North America generated largest revenue, as it has over 50% of the globally installed capacity base.
Second generation biofuels are developed to overcome the limitations associated with traditional biofuels. Production of traditional biofuels faces barriers such as threat to biodiversity and food versus fuel issues. On the other hand, second generation biofuels are produced from a range of non-food crops and waste biomass. Also, second generation biofuel production is more energy efficient than the conventional fossil fuels. Such biofuels minimize greenhouse gas (GHG) emissions by over 90%; thus, are more environment-friendly.
In conjunction with benefits delivered by second generation biofuels, financial incentives and supportive regulations in the U.S. and Europe are instrumental in driving the commercial production and adoption of advanced biofuels; Renewable Fuel Standards (RFS) in the U.S. is among one of such initiative. However, complexities associated with the production process, high initial capital investment and availability of land (for plant set-up) in the vicinity of the source of feedstock are the factors impeding the growth of the market.
Ease of production of Cellulosic ethanol will be a principal driver that would contribute to the economies of scale. Furthermore, the cellulosic ethanol market is forecast to grow at a CAGR 52.2% during 2014-2020, due to the rapid growth in technologies for mass production.
Currently, North America accounts for about 82% of the global market share, as various market players prefer the United States for operating their pilot plants, chiefly due to supportive regulatory environment. Recently, Procter & Gamble announced a collaboration with DuPont to use cellulosic ethanol, replacing corn based ethanol in its Tide detergent in North America. Other major players recently started the production of cellulosic ethanol in North America are INEOS New Planet BioEnergy, Poet-DSM Advanced Biofuels LLC, Canergy LLC, Abengoa bioenergy, Amyris and Enerkem among few.
Poet-DSM Advanced Biofuels LLC has recently opened its first commercial scale cellulosic ethanol plant with the capacity of producing 20 million gallons per year, named “Project LIBERTY” in Iowa that uses corncobs, husk, leaves and stalk as feedstock.
To view the report, visit the website at http://www.alliedmarketresearch.com/second-generation-biofuels-market