How big is the global market for biodiesel and bioethanol likely to get? That is a key question for firms making large bets on the growth of these businesses. One indication of the potential size has come from Sergio Trindade, R & D director of International Fuel Technology who estimates
Global biodiesel production should grow to 24bn litres in 2020 from 3.5bn litres produced in 2005 according to the estimates by the International Energy Agency, Trindade said, adding that most of the current production comes from Europe. The biodiesel and bioethanol demand story is reported on ICIS news*.
Around 16bn litres should come from Europe [in 2020] and the rest from US, Asia,
He also estimates that global fuel ethanol production, will triple to 120bn litres by 2020 from around 40bn litres currently with the US and Brazil, which currently account for 90% of the world’s ethanol production likely to add a further 50bn of the additional 80bn litres expected to come on stream by 2020.
While cheaper transport fuel needs an economic factors drive biodiesel and ethanol demand, the success of projects will depend on sustainable supply of feedstock and well functioning markets, Trindade says. He was speaking ahead of the Ethanol and Biofuels Asia 2006 conference organised by Terrapinn in Singapore from 1 to 3 November. The news comes a day after the US Renewable Fuels Association released stats for production in August that says
U.S. ethanol producers continue to answer the growing demand for this cleaner-burning fuel by producing a record 329,000 barrels a day in August.Based on that production, the U.S. ethanol industry is producing more than 5 billion gallons of ethanol for the first time on an annualized basis.
That came from Domestic Fuel.com a US based site looking at the biofuels industry
[*Full Disclosure: I am employed by ICIS.]