Critical Need for Reduced Dependence on Conventional Energy Sources Drives Liquid Biofuels Market
Diminishing reserves of natural fossil fuels continue to encourage the hunt for environmentally sustainable and equally effective alternative fuels to cater to ever-increasing demand. Liquid biofuels have been gaining traction an energy-efficient source on the back of growing preference for clean energy alternatives at a global level. Given the zero-emissions target set in several countries for 2050, liquid biofuels market will experience robust growth over the period of next few years.
As energy security is precarious in both society and government around the world, biofuel - providing power through renewable resources instead of conventional generation technologies - is emerging as fuel alternative. Biofuels are easy to use, provide energy security, builds economic development, help in greenhouse gas (GHG) and emission reduction, meet energy balance, and recyclable & biodegradable. As production of biofuels demands the use of plant-based raw materials and they substantially reduce reliance on conventional energy sources, biofuels are expected to witness strong market growth in the near future. Liquid biofuels, owing to their convenience of usage, will particularly see rising demand in global market.
Opportunities Ride Increasing Awareness about Clean Energy Potential of Liquid Biofuels
Biofuels can work as an alternative to replacing energy needs from vehicle fuel to central home heating. Biofuel can be used to power up any mechanism that would run on the conventional type of fuels. Biofuel can provide hydrogen, clean up oil, work as cooking oil, and more. Liquid biofuels (mainly ethanol and biodiesel) have been considered as alternative sources to resolve the demanding consumption of conventional gasoline and diesel fuels from fossil fuels.
Demand for global liquid biofuels in global market is expected to rise, thereby reducing the dependency on fossil fuels for energy needs. The demand for cleaner energy alternative is boosting demand for liquid biofuels. Biofuels utilise plant based raw materials for production and have zero carbon dioxide emission (on combustion). Rising awareness about depleting fossil-based energy sources is also bringing in lucrative opportunities to the liquid biofuels market.
Governments Encourage Production and Usage of Liquid Biofuels with Climate Targets and Policy Structures
Stringent government norms and regulatory guidelines regarding energy, emissions, and environmental footprint are collectively leading to the establishment of some policy frameworks that would work in favour of building a sustainable future altogether. Such regulatory standards developed across the various countries around the world are particular about greenhouse gas emissions, carbon footprint, and non-renewable energy sources. This will continue to pave the way for liquid biofuels. It is expected to also fuel R&D investment in commercialisation of the second and third generation technologies.
Transportation Biofuel Segment to Flourish as Adoption of Advanced Biofuels Increases
Transportation is a major contributor to a number of environmental problems, primarily because of higher dependence on fossil fuels. Using biodiesel as a vehicle fuel increases energy security, improves air quality and the environment, and provides safety benefits. Biofuels that are used in transportation segment will flourish in the forecast period and are expected to triple in business by 2030. Transportation fuels are made from biomass through biochemical or thermochemical processes and the most promising of them include ethanol, biodiesel, hydrogen, biogas, and natural gas.
Our dependence on petroleum for fuelling the transportation sector threatens the energy security, affects environment, and weakens overall economy. Developing the technology to produce and efficiently utilise biofuels will create transportation fuel options that can positively impact these issues and establish safe, clean, and sustainable alternatives to petroleum. Strong government policy support and technological advancement to reduce costs will boost adoption of advanced biofuel consumption in numerous transport sectors. The demand for higher biofuel output due to sustainability governance will boost the demand for transportation biofuels.
North America Continues to Lead; Several Countries Choose to Soon Get Energy Independent
With abundant feedstock and adequate area available for production of biofuels, North America will most likely remain dominant in the global liquid biofuels market. Governments in Central and South America are also taking initiatives with an aim to achieve energy security and energy independence in the near future. Besides, other countries proactively operating in biofuel space include the US, Brazil, Venezuela, and some of the European countries. Opportunities abound in Canada as the Canadian government is focusing on achieving annual reduction in GHG by 30Mt by 2030. Canada will thus possibly achieve an overall 30% reduction in GHG emissions.
Key Players Adopt Sustainable Sourcing Strategies to Hold Dominance in Global Market
Some of the key players operating in the global liquid biofuels market include Cargill, Incorporated, Praj Industries, Sapphire Energy, Alto Ingredients, Inc., Australian Renewable Fuels Limited, Cosan Limited, Coskata, Inc., RB Fuels, Archer Daniels Midland Company (ADM), Gevo, Inc., Renewable Energy Corp, Green Plains, Wilmar International, Valero Energy Corp., Petrobras; Butamax, and Algenol.
Recently (April 2021), Praj Industries won an order from the Government of India (GOI) to set up India's largest capacity syrup-based ethanol plant from Godavari Biorefineries (GBL) in Karnataka. The company will expand its existing ethanol manufacturing capacity to 600 KLPD, using sugarcane syrup. When commissioned, this will become India's largest capacity syrup-based ethanol plant. In July 2020, Bioenergy Australia and The Clean Energy Council announced about the signing of an MoU between the two organisations. This strategic collaboration is most likely to drive an increased level of understanding, uptake, and engagement in biofuel generation in Australia.