Conventional biofuel production to grow steadily; advanced biofuel slows

July 23, 2013 | By Barbara Vergetis Lundin

According to Navigant Research, biofuel production revenue will reach $7.6 billion by 2023, with $69 billion invested in new production capacity worldwide over the next 10 years. This is even as the global expansion of advanced biofuel production slows due to delays in the development of advanced biofuels, the boom in fossil fuels production in key markets like the United States, and a decline in global biofuels investment.

Green fuel refinery in Pasadena, Texas. Credit: Honeywell/Wikimedia Commons

The next wave of advanced biofuels is nearing commercialization, however, and conventional biofuels production is anticipated to grow steadily between 2013 and 2023.

"Conventional ethanol, derived from corn starch, coarse grains, and sugarcane, is expected to remain the largest segment of biofuels over the next 10 years despite facing increased scrutiny as a viable long-term alternative to fossil-based liquid fuels," said Mackinnon Lawrence, principal research analyst with Navigant Research. "The fastest growing segment in the industry, though, will be advanced biofuels such as advanced ethanol, biobutanol, and green diesel, which are moving beyond the pilot and demonstration scale at a handful of projects across the globe."

Demand- and supply-oriented policies will continue to play a critical role in the development of the biofuels market. Targeted production through supply-focused policies is expected to surpass current obligatory and voluntary blending policies by 2019, according to the research. Assuming that actual production keeps pace with current supply targets, this imbalance is expected to have a significant impact on ethanol and biodiesel blending policies at the country level. Policy makers will likely capitalize on greater supply and expand existing blending mandates to encourage greater integration of biofuels into their domestic fuel mix.

For more:
- download the report

http://www.fierceenergy.com/story/conventional-biofuel-production-grow-steadily-advanced-biofuel-slows