The 53.2 billion gallon a year (BGY) biofuel industry is poised for a huge slowdown in capacity growth, to a 3.2% annual rate from 2013 to 2017 – reaching 60.4 billion gallons – off from 19.6% annually from 2005 to 2013, according to Lux Research. The sharp decline is on account of a significant industry transition to novel fuels and feedstocks, to enable long-term growth in the face of impediments like the food vs. fuel debate and the imminent blend limits for biodiesel and ethanol. Next-generation biofuels – such as renewable diesel and butanol – that can offer higher blends, in contrast, are not quite mature.
IL BIOECONOMISTA 