Wellesley, Mass-According to a new technical market research report, GLOBAL MARKET FOR LIQUID BIOFUELS (EGY064B) from BCC Research (www.bccresearch.com), the global market for liquid biofuels was worth $30.3 billion in 2008. This should increase to $42.8 billion in 2013, for a compound annual growth rate (CAGR) of 7.2%.
The market is broken down into first generation biofuels and other fuels. First generation biofuels currently dominate the market and generated $30.3 billion in 2008. This is expected to increase to $42.6 billion in 2013, for a CAGR of 7.1%.
Other fuels were worth $17.1 billion in 2008, and this segment is expected to increase to $138.0 billion in 2013, for a CAGR of 51.8%.
Biofuel is a solid, liquid or gaseous fuel derived from recently dead biological material, as distinguished from fossil fuels derived from long dead biological material. Plant materials can be converted into a wide range of renewable liquid transportation fuels.
Depending on feedstock and the fuel to be produced, conversion can be accomplished through several different routes using a range of conversion processes including biological, chemical and thermal. Biological processes typically are slower than thermal methods, but deliver a product that is readily purified, although it may have substantial energy or capital costs. Thermal processes, although more rapid typically, deliver a mixed product more difficult to refine and purify into a useful product. The energy efficiency of conversion also is affected by the amount of transportation or pre-treatment required before conversion.
The rapid expansion of biofuels production is driven primarily by government mandates and incentives. Their development and use is seen as advantageous in most world regions since they are renewable, reduce the emission of greenhouse gases responsible for global warming, contribute to energy security, and promote rural development.