There are many with romantic notions about the role of the biofuels industry. One thing is certain, according to a BP speaker at the ethanolintel conference in Singapore, there’s no way we can meet demand in the future by using old chip fat, according to a report on ICIS news.
Citing a joint BP and McKinsey study, Sung-Woo Hur, vice president of business development at BP Biofuels Singapore, estimated that by 2030, 85bn-195bn gallons/year of biofuel will be produced, replacing between 10% and 24% of gasoline demand.
Assuming that biofuel is produced at 196bn gallons/year, this would require a “capital intensive” cumulative investment of $700bn from now till 2030 and a build rate of one times 100m gallon plants every 4-5 years, he said.
The biofuel industry will need to become very much more mature and integrated if it is going to manage to do this