Rapidly Increasing Need to Provide Clean, Long-Lasting Energy to Fuel Growth of Second-generation Biofuels Market
The demand to offer clean, sustainable energy with little environmental impact is driving second-generation biofuels market. Second-generation biofuel manufacturing technology eliminates the food vs. fuel conundrum by producing commercially acceptable fuel from inedible biomass. Agricultural and non-food crop residues, forestry wastes, energy crops, jatropha, and algae are the most common feedstocks for second-generation biofuels. Biofuels have garnered investments from a variety of significant market players due to their ability to fuel the transportation sector with reduced carbon emissions when compared to conventional fuels. Second-generation biofuel production is appealing to countries with limited petroleum reserves since it helps to reduce foreign exchange spending on petroleum imports.
For instance, in contrast to the 187 thousand barrels of oil equivalent per day produced in 2000, global biofuel output reached 1,677 thousand barrels of oil equivalent per day in 2020. Policies encouraging the use and production of biofuels have fuelled growth, with the belief that they may offer energy security and reduce greenhouse gas emissions in key sectors. Biofuels can be helpful since they have fewer environmental implications than fossil fuels and they consume waste materials that would otherwise be thrown. The biofuel industry has been influenced by blending regulations, sustainability goals, fuel quality standards, and import levies. The worldwide biofuels industry is anticipated to reach US$153.8 Bn by 2025, creating a strong base for the establishment of second-generation biofuels market.
Increased concern about the harmful impacts of greenhouse gas (GHG) emissions into the environment, which are mostly caused by the combustion of fossil fuels, is expected to aid in the expanding installation of biofuels generating plants or bio-refineries around the world. The production of biofuels through aerobic/anaerobic digestion of biomass, which helps to reduce the use of fossil fuels for power generation and vehicle fuelling, is expected to boost the market for porous electrodes for electrolysis. If generated sustainably as much as net carbon dioxide absorbed by the oceans, biofuels are expected to replace enough petroleum products to avoid the gigatons of carbon dioxide emissions per year, according to the International Energy Agency (IEA).
Potential Application in Transportation Accelerates Second-generation Biofuels Market
During the forecast period, the transportation segment is expected to have the most share. Without making any technical adjustments to the engine, a mixture of ethanol, and low-ratio gasoline can be used efficiently in traditional spark-ignition engines. Hybrid vehicles can run on a highly concentrated blend of fuels. Hybrid vehicles can run on a highly concentrated blend of fuels. When in touch with the material used in the engine, the capacity of second-generation biofuels to oxidize into acetic acid may corrode the engine surface. Cold engines are caused by the high latent heat of vapourisation and a de-mixing issue with hydrocarbon, which are market restrictions. Biofuels, on the other hand, are combined with petroleum diesel to counteract this disadvantage, which is expected to increase product demand.
Production of Biofuels to Drive Growth of North America Second-generation Biofuels Market
North America dominates the global second-generation biofuels market. On a global scale, the United States has been one of the leading countries in the production and use of biofuels. Bioethanol is a widely produced and used biofuel in the United States. It is mostly derived from maize grain and is widely available. In the United States, bioethanol is blended with gasoline and sold in E10 and E85 forms, which has sped up the adoption of biofuels in the country. For instance, in 2019, biofuels accounted for 7.3 percent of total motor gasoline, distillate, and jet fuel use in the United States, with 1.09 million barrels per day consumed.
Biodiesel was the second most produced and used biofuel in the United States in 2020, accounting for roughly 11%, and 12% of total US biofuels production, and consumption, respectively. There were 75 biodiesel manufacturing facilities in the United States as of January 1, 2021, with a total capacity of around 2.4 billion gallons of B100 per year. Midwestern states account for about 62 percent of total production capacity (PADD 2). Biodiesel (B100) output in the United States is expected to reach 1.8 billion gallons in 2020, with imports at 197 million gallons and exports at 145 million gallons. In 2020, almost 1.9 billion gallons of B100 were consumed in blends up to B20. Second-generation biofuels market is expected to expand at the quickest rate in Asia Pacific. Few Chinese enterprises are taking use of Asia Pacific's vast resources to invest in the future market. Governments are expected to drive the market as they provide incentives to manufacturers. Laws relating to greenhouse gas reductions, and renewable energy production are expected to drive the industry.
Global Second-generation Biofuels Market: Competitive Landscape
In 2020, INEOS and UPM Biofuels established a long-term deal to offer a sustainable raw material for the development of novel and innovative bio-attributed polymers at INEOS Köln, Germany. To make bio-ascribed polyolefins, INEOS will use UPM BioVerno, a sustainable crude material made from renewable residues from wood mash handling. These new sustainable materials will be employed in a variety of products, ranging from plastic food packaging to medical devices and pipes. BIOVYNTM, the world's first commercially produced bio-credited PVC, was also developed by INOVYN, an INEOS Business.
A few of the players in the second-generation biofuels market include Algenol Biofuels, Zea2 LLC, Fiberight LLC, DuPont Nutrition & Biosciences, Clariant AG, Ineos Group, GranBio, Orsted AG, Reliance Industries, and POET-DSM Advanced Biofuels LLC.
Global Second-generation Biofuels Market is Segmented as Below:
Key Elements Included In The Study: Global Second-Generation Biofuels Market
Post Sale Support, Research Updates & Offerings
We value the trust shown by our customers in Fairfield Market Research. We support our clients through our post sale support, research updates and offerings.
Under uncertainty, traditional approaches to strategic planning can be downright dangerous. True ambiguity is no basis to forecast the future – degree of risk, the magnitude of circumstances, conditions and consequences are not known or unpredictable. To avoid dangerous binary views of uncertainty; strategic posture, moves and actions through market research is the best bet.Read more