According to a new report by Allied Market Research titled, &ldquo;Global Second Generation Biofuels&mdash;Size, Industry Analysis, Trends, Opportunities, Growth and Forecast, 2013-2020,&rdquo; the global second-generation biofuels (advanced biofuels) market would reach $23.9 billion by 2020, registering a compound annual growth rate (CAGR) of 49.4 percent during 2014-'20. Currently, biodiesel garners the largest market share; however, the latest and the most commercially viable cellulosic ethanol would surpass biodiesel and eventually lead the market by 2020. North America generated largest revenue, as it has more than 50 percent of the globally installed capacity base.
Second-generation biofuels are developed to overcome the limitations associated with traditional biofuels. Production of traditional biofuels faces barriers such as threat to biodiversity and food versus fuel issues. On the other hand, second-generation biofuels are produced from a range of nonfood crops and waste biomass. Also, second generation biofuel production is more energy efficient than the conventional fossil fuels. Such biofuels minimize greenhouse gas (GHG) emissions by more than 90 percent and, thus, are more environmentally friendly. To view the report, click <a href="http://www.alliedmarketresearch.com/second-generation-biofuels-market">here</a>.
In conjunction with benefits delivered by second-generation biofuels, financial incentives and supportive regulations in the U.S. and Europe are instrumental in driving the commercial production and adoption of advanced biofuels; the renewable fuel standards (RFS) in the U.S. is among one of such initiative. However, complexities associated with the production process, high initial capital investment and availability of land (for plant set-up) in the vicinity of the source of feedstock are the factors impeding the growth of the market. Currently, biodiesel is the highest produced second-generation biofuel; however, cellulosic ethanol would surpass it in the next couple of years, the report states. Ease of production of cellulosic ethanol will be a principal driver that would contribute to the economies of scale. Furthermore, the cellulosic ethanol market is forecast to grow at a CAGR 52.2 percent during 2014-'20, due to the rapid growth in technologies for mass production. Currently, North America accounts for about 82 percent of the global market share, as various market players prefer the U.S. for operating their pilot plants, chiefly due to supportive regulatory environment. Recently, Procter &amp; Gamble announced a collaboration with DuPont to use cellulosic ethanol, replacing corn-based ethanol in its Tide detergent in North America. Other major players that recently started the production of cellulosic ethanol in North America are INEOS New Planet BioEnergy, Poet-DSM Advanced Biofuels LLC, Canergy LLC, Abengoa bioenergy, Amyris and Enerkem among few. Key findings of the study: -The global market for second-generation biofuel is gaining traction with production and supply of cellulosic ethanol and biodiesel as prime growth drivers during the forecast period (2014-'20). -Top factors impacting the global second-generation biofuels market are favorable regulatory policies and its environment-friendly nature. The cellulosic ethanol segment will grow at a CAGR of 52.2 percent during the forecast period, the fastest among all types of second-generation biofuels. -Currently, North America holds largest market share, followed by Europe in the overall second-generation biofuels market in terms of production. -Among all feedstock used (corn stover, corn cob, algae, bagasse, straw, wood waste, cellulose, mixed biomass, hardwood, forest residue, animal waste), a high volume of second-generation biofuels will be produced from algae, due to its oil content, resulting in high-yield production. -Some of the leading companies operating in the global second generation biofuels (advanced biofuels) market are Abengoa, POET-DSM, DuPont, GranBio, INEOS Bio and Inbicon. -Most of the market players are focusing on mainly two strategies, namely partnership and collaborations, and seeking approvals as key developmental strategies. To leverage opportunities that are imminent, many companies are setting up plants for production of second-generation biofuels. POET-DSM Advanced Biofuels LLC has recently opened its first commercial-scale cellulosic ethanol plant with the capacity of producing 20 MMgy, named &ldquo;Project Liberty&rdquo; in Iowa that uses corncobs, husk, leaves and stalk as feedstock. The key market players operating in different segments of market are Algenol Biofuels, Abengoa bioenergy, GranBio, INEOS Bio, Inbicon, Clariant, ZeaChem, DuPont Industrial Biosciences.

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According to a new report by Allied Market Research, the global second-generation biofuels (advanced biofuels) market is expected to reach $23.9 billion by 2020, registering a compound annual growth rate (CAGR) of 49.4 percent from 2014-'20.

Global advanced biofuel market to reach $24 billion by 2020

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