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, as the ‘next wave’ of advanced biofuels nears commercialization.
The company says the global biofuels space has seen ‘healthy growth’ over the past 10 years, particularly in terms of ethanol and biodiesel. But new biomass-derived fuels are coming, such as those derived from non-food feedstocks and drop-in synthetic substitutes for gasoline, diesel and jet fuel.
‘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 to 2023 – almost twice as fast as the growth rate for fossil-based gasoline, diesel and jet fuel over the same period,’ he adds.
More than 40 countries currently have obligatory or voluntary ethanol and biodiesel blending mandates. Also, supply-oriented policies, such as the U.S.' Renewable Fuel Standard and Europe's Renewable Energy Directive, call for the ‘rapid acceleration’ of advanced biofuels production, Navigant Research says.
‘The next 10 years will likely see a shakeup of existing policies around biofuels to better calibrate policy objectives and actual production,’ the company notes.
Click HERE for more details about Navigant Research's ‘Market Data: Biofuels’ report.