Global Biofuels Production Will Reach Nearly 62 Billion Gallons by 2023, Forecasts Navigant Research
BOULDER, Colo.--(BUSINESS WIRE)-- After more than a decade of healthy growth for conventional biofuels like ethanol and biodiesel, the next wave of advanced biofuels is nearing commercialization. The pool of commercially available biomass-derived fuels is expanding to include advanced fuels derived from non-food feedstocks and drop-in synthetic substitutes for gasoline, diesel, and kerosene-based jet fuel. According to a new report from Navigant Research, worldwide biofuels production will grow from 33.6 billion gallons per year (BGY) in 2013 to 61.6 BGY in 2023.
"North America is leading the transition to advanced biofuels, but healthy growth in Europe, Asia Pacific, and Latin America is helping to diversify the fuel supply for a range of transportation applications," says Mackinnon Lawrence, principal research analyst with Navigant Research. "Although the scale-up of new production capacity will face significant headwinds in the coming decade, global biofuels production is anticipated to grow at a compound annual growth rate of six percent from 2013 and 2023—almost twice as fast as the growth rate for fossil-based gasoline, diesel, and jet fuel over the same period."
Today, obligatory and voluntary ethanol and biodiesel blending mandates are set in more than 40 countries. At the same time, supply-oriented policies, like the Renewable Fuel Standard in the United States and Renewable Energy Directive in the European Union, call for rapid acceleration in the production of advanced biofuels. Global biofuels production will exceed the aggregated volume of blending mandates by 2020, according to the report, even as the anticipated rollout of supply targets will exceed actual production in that same year. The next ten years will likely see a shakeup of existing policies around biofuels to better calibrate policy objectives and actual production, the study concludes.
The report, "Market Data: Biofuels", provides forecasts, market sizing, and market share analysis for conventional ethanol, advanced ethanol, biobutanol, biodiesel, green diesel, synthetic gasoline, and renewable jet fuel. The report also includes comprehensive data and forecasts for biofuels blending and supply-oriented policies. The total volume of biofuels produced by fuel type and market penetration in retail fuel markets is forecast through 2023, segmented by world region and key countries and sub-regions. An Executive Summary of the report is available for free download on the Navigant Research website.
About Navigant Research
Navigant Research, the dedicated research arm of Navigant, provides market research and benchmarking services for rapidly changing and often highly regulated industries. In the energy sector, Navigant Research focuses on in-depth analysis and reporting about global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Utilities, Smart Transportation, Smart Industry, and Smart Buildings sectors. Additional information about Navigant Research can be found at www.navigantresearch.com.
Navigant (NYS: NCI) is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals combine technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism in the highly regulated Construction, Energy, Financial Services and Healthcare industries to support clients in addressing their most critical business needs. More information about Navigant can be found at www.navigant.com.
* The information contained in this press release concerning the report, "Market Data: Biofuels," is a summary and reflects Navigant Research's current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report's conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.
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