Biodiesel capacity growth to be constrained through '15 – US firm

07 December 2011 19:26  [Source: ICIS news]

BOGOTA (ICIS)--Feedstock, economic and fuel compatibility issues will constrain growth of alternative fuels such as biodiesel through 2015, according to a research report released on Wednesday by a US firm.

As a result, biodiesel capacity will grow at 2.4%/year, according to a research report by Lux Research, titled, "Nations Race to Build Alternative Fuel Capacity”.

Even with the slow growth, biodiesel will remain one of the dominant fuels in 2015, the report said.

“Pockets of promising growth still exist as variations in local policy, demand, and feedstock availability mean that new nations will arise as global hotspots in the constrained industry,” according to the report.

Biodiesel capacity growth will reach 15.8bn gal/year (60bn litres/year) in 2015, as France, Canada, Thailand and Germany emerge as the best nations for biodiesel capacity opportunities, the report said.

These nations offer the best opportunities for first-generation biodiesel development, according to Lux Research analyst and lead author of the report, Andrew Soare.

However, Soare said the market is shifting to second-generation fuels like renewable diesel and cellulosic ethanol.

“These fuels bypass the major logistical hurdles of first-gen alternative fuels and investors, as well as governments, are realigning investment to grow capacity,” Soare said in the report.

Global biodiesel production capacity is now over 14bn gal, according to the report. Biodiesel and ethanol account for 97% of all biofuels in the world.

Doris de Guzman examines alternative processing, new technology, R&D and other sustainability initiatives in Green Chemicals

By: Leela Landress
+1 713 525 2653

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index