Advanced Biofuels Market Forecasts to 2028 – Global Analysis By Raw Material (Algae, Camelina) Advanced Biofuel Type (Biobutanol, Biodiesels, Biogas), Process (Biochemical Process, Thermochemical Process) and By Geography
According to Stratistics MRC, the Global Advanced Biofuels Market is accounted for $61.77 billion in 2022 and is expected to reach $399.56 billion by 2028 growing at a CAGR of 36.5% during the forecast period. Advanced biofuels are fuels derived from different biomass types, including agricultural, municipal, and other waste. Advanced biofuels are produced from woody/ lignocellulosic crops with biomass, non-starch sugars, as well as the residues of the agricultural, making it more difficult to extract the fuel needed. Biofuels of the next generation are engineered to overwhelm the constraints of the maximum temperature freezing and the adverse effects on the environment of biofuels of 1st generation including biogas, vegetable oil, bio alcohols among others are capable of supplying vast amounts of fuel sustainably, with greater environmental benefits.
In the French agriculture sector, consumption of advanced biofuels was non-existent in 2010. Whereas in 2035, this energy source would represent 8 percent of the demand for renewable energy. In 2050 the demand for this type of energy in the agricultural sector should increase and thus represent 19 percent of the demand for a renewable energy source. The Middle East and Africa is forecast to see the greatest growth in the biofuel market worldwide between 2021 to 2030, at 9.6 percent. By comparison, the biofuels market CAGR in Europe is projected to stand at four percent.
Market Dynamics:
Driver:
Growing environmental and energy security concerns
Alternative fuels are gaining more interest because of uncertainties in global fuel markets, energy security, and the gradual rise in reducing carbon emission levels. Advanced biofuels are renewable sources of energy that dramatically reduce carbon emissions and provide commercial opportunities, leading to increased interest in their production. Increased research and development activities are gradually paving the way for the commercialization of advanced biofuels on a wide scale.
Restraint:
The declining price of crude oil
The declining price of crude oil might pose as a restraint to the growth of the advanced biofuels market still the environmental advantage of advanced biofuels over traditional fuel is expected to counter the restraint. The processing and operational cost for advanced biofuels is high in comparison to conventional fuels. Advanced biofuels have always been an expensive substitute for conventional fuels, which will impede the market growth.
Opportunity:
The ease in the availability of raw materials
The advanced biofuels being a sustainable and clean source of fuel these characteristics are expected to increase the market potential of the global advanced biofuels market. The ease in the availability of raw materials, and the raw materials used being non-food and wastes will be a driver for the global advanced biofuels market. The governmental incentives supporting the development of technologies for producing advanced biofuels will also drive the market for advanced biofuels globally.
Threat:
The processing of advanced biofuel feedstock
The global advanced biofuel market is still in its nascent stage. Not only is the current technology used in the production of advanced biofuels inefficient compared with that of conventional fuels, but also the cost of procuring feedstock is high. The processing of advanced biofuel feedstock is difficult. Though advanced biofuels are produced commercially, it still requires an efficient, sustainable, and economical processing technique.
The biodiesels segment is expected to be the largest during the forecast period
The biodiesels segment is expected to be the largest share due to the usage of great-yield algae raw material and the huge potential of biodiesels to reduce the reduction of greenhouse gas emissions. And also, due to the increased usage of the application of biodiesel in the automotive industry and as aviation fuel. The reduction in greenhouse gases by the use of biodiesel as fuel has been the reason for driving the growth of advanced biofuels in the automotive industry.
The algae segment is projected to be the highest during the forecast period
The algae segment is estimated to be the highest market share owing to its quality of possessing more oil content and it can be grown using ocean or wastewater. Algae is capable of yielding equal to 300 times more oil over conventional crops and has a up to 10 days’ harvest period as it grows almost 30 times faster than other feedstock’s.
Region with highest share:
North America is projected to hold the largest share in the market due to the rising demand for cleaner-burning transportation fuels in the U.S. and Canada of North America. The presence of leading players in the region along with strategies that are implemented by the major players in the countries of North America is expected to witness substantial growth in the target industry soon.
Region with highest CAGR:
The Asia Pacific is projected to have the highest CAGR during the forecast period. Stringent government policies related to the land-use change and use of renewable sources have compelled manufacturers and researchers to innovate and develop new technology, which can replace fossil fuel.
Key players in the market:
Some of the key players profiled in the Advanced Biofuels Market include A2BE Carbon Capture, LLC, Abengoa SA, Algenol Biofuels, Bangchak Corp. Public Co. Ltd., Chemtex Group, Clariant Produkte GmbH, DuPont de Nemours Inc., ENERKEM Inc., Fiberight LLC, Goteborg Energi AB, GranBio Investimentos SA, POET-DSM Advanced Biofuels LLC, Renewable Energy Group Inc., Royal Dutch Shell Plc, and UPM-Kymmene Corp.
Key developments:
In November 2021: DuPont announced strategic actions to enhance portfolio for near and long-term value creation. Combined actions will strengthen DuPont's positions in high-growth, high-margin markets with a focus on electronics, water, protection, industrial technologies and next generation automotive; accelerates top-line growth, strengthens operating EBITDA margins and significantly improves cross-cycle earnings stability.
In September 2021: Royal Dutch Shell plc (Shell) announced a final investment decision to build an 820,000-tonnes-a-year biofuels facility at the Shell Energy and Chemicals Park Rotterdam, the Netherlands, formerly known as the Pernis refinery. Once built, the facility will be among the biggest in Europe to produce sustainable aviation fuel (SAF) and renewable diesel made from waste.
Raw Materials Covered:
• Algae
• Camelina
• Jatropha
• Lignocellulose
• Other Raw Materials
Advanced Biofuel Types Covered:
• Biobutanol
• Biodiesels
• Biogas
• Cellulosic Advanced Biofuels
• Ethanol from Non-Corn Starch
Processes Covered:
• Biochemical Process
• Thermochemical Process
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
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- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
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