Bio-oil

Bio-oil

Bio-Fuel, also known as Bio-Crude or Pyrolysis oil, is a synthetic fuel that comes under as a substitute for petroleum. It is obtained by heating dried biomass without oxygen in a reactor at a temperature of about 500 °C with subsequent cooling. It is usually a dark, viscous liquid and is comprised of hundreds of oxygenated organic compounds (carboxylic acids, ketones, aldehydes, furans, sugars) and water. As liquefied biomass, it is more easily pumped and stored and more compatible with chemical modification, processing, or extraction.

The Bio-Oil Market is expected to grow at a strong CAGR of 4.4% during the forecast period. It is mainly owing to the government programs and incentives to promote cleaner renewable fuel in order to meet climate change policies globally. Moreover, the need to meet net zero emission goals across the globe in various countries and rising consumer awareness towards environmentally friendly products are acting as a catalyst in the growth of bio-oil globally during the projected period.

Further, in addition, key players in the market are also launching new products and technology in the market to increase the yield of bio-oil and produce cleaner versions of oil. The majority of governments have formulated new policies in order to support the growth of renewable fuel. The government of India introduced “The National Policy of Biofuel 2018” which aims to promote biofuel and increase government incentives in the biofuel sector. The policy provides an indicative target of 20% ethanol blending in petrol under the Ethanol Blended Petrol Programme by 2030. The current ethanol blend stands at 10%, however, the government has started promoting biofuel in India.

• Based on process, the Bio-oil market is bifurcated into Pyrolysis and Thermochemical Liquefication segments. Pyrolysis captured a majority share of the market and is expected to register the highest growth during the forecasted period as well. Bio-oil is obtained via an array of thermochemical processes. The most common of these processes are pyrolysis and hydrothermal liquefaction. The thermochemical liquefaction process is less attractive compared to the fast pyrolysis process as it produces a lower yield of bio-oil and requires additional catalysts or other reactants to facilitate the process which is a major drawback. The fast pyrolysis process is favorable as it can maximize the yield of bio-oil by approximately about 80% based on dry feed and operational conditions used.
• Based on application, the bio-oil market is bifurcated into Fuel, Chemical, and Others (food flavoring, raw materials in direct applications, etc.) segments. The fuel segment captured an extensive share of the market and is expected to grow at a significant rate in the forecasted period as well. The bio-oil can be used for heat and power generation, liquid fuels, and various raw chemical products such as asphalt binder, adhesive, resins, food flavoring, and agrichemicals. Bio-oil is a major substitute for conventional oil but the renewable fuel industry is still very niche, and the price of bio-oil is not competitively priced when compared to traditional fuel. However, many governments and industries have started investing in sustainable fuel which has increased the research in bio-oil and new technological advancements will make bio-oil a strong substitute for conventional fuel in the future.
• For a better understanding of the market adoption of Bio-Oil, the market is analyzed based on its worldwide presence in the countries such as North and South America (U.S., Canada, Brazil, and the Rest of North America), Europe (Germany, Netherlands, France, Spain, Rest of Europe), Asia-Pacific (China, Indonesia, India, and Rest of Asia-Pacific), Rest of World. North and South America acquired more than half of the market share in the Bio-Oil market and is expected to witness an influential CAGR in the forecasted period. It is mainly owing to a large number of Bio-Oil operational projects taking place in Canada, the United States of America, and Brazil. Moreover, favorable government policies, regulations, and investments in achieving net zero emission targets are driving the market. For instance: In the United States, the Sustainable Aviation Grand Challenge Roadmap aims to improve understanding of the feedstock challenge, boost supply potential, and support new technology development. In Canada, a USD 1.1 billion Clean Fuels Fund supports supply chain development. Policies focused on GHG emissions reductions can also be useful since they give biofuel producers an incentive to reduce the GHG intensity of their fuels, not just produce more.

Some of the major players operating in the market include Agilyx, Inc., Alterra Energy, BTG Biomass Technology Group, Nexus Circular, Plastic Advanced Recycling Corporation, Brightmark LLC., OMV Aktiengesellschaft, Niutech, APChemi Pvt Ltd and Klean Industries Inc