Monday, March 30, 2015

The growth of second generation biofuels as the most viable alternative to Global energy fuel supply

Big Market research adds a report titled "Global Second Generation Biofuels - Size, Industry Analysis, Trends, Opportunities, Growth and Forecast, 2013 – 2020” "Global Second Generation Biofuels - Size, Industry Analysis, Trends, Opportunities, Growth and Forecast, 2013 – 2020”. The global second generation biofuels (or Advanced Biofuels as they are called) market is expected to reach a market value of $23.9 billion by the year 2020 accounting to a 49.4% CAGR amid 2014 - 2020. Currently, biodiesel holds the largest market share in terms of volume; however, cellulosic ethanol would lead the market segment by the year 2020 owing to its commercial availability.

Generally we refer to the first-generation biofuels as those mainly based on sugars, grains, or seeds, requiring relatively simple processing to produce .As opposed to this, second-generation biofuels would be generally made from non-edible lignocellulose biomass, including residues of crops or Forestry production and whole plant biomass e.g. energy crops such as switch grass and  poplar. There is an increased interest in the expansion in Second generation biofuels production as compared to conventional biofuels (or first generation biofuels) due to many factors, the chief of them being the former are more energy efficient and environmental friendly. These biofuels are less land and water intensive and use residues from agriculture. Cellulosic ethanol biodiesel is in the nascent stages of commercialization, while Biobutanol and BioDME are in the laboratory/pilot phase of production. Owing to usage of high yield feedstock, along with widespread reduction of GHG emissions, it is expected that Biodiesel would have the highest market share in terms of production.

 
The government of various countries is actively supporting the production of second generation biofuels by providing large fiscal initiatives, easing restrictions on the acquiring of land for growing feedstock, setting up state-owned distribution firms, funding R&D activities of the top companies engaged in the production of such biofuels. As of now, the US is the country that has made the largest investments in bioenergy R&D. Top market players are : Abengoa bioenergy, Algenol Biofuels, INEOS Bio, ZeaChem, Clariant, Inbicon and GranBio

The report analyses the key drivers of the growth of the second generation biofuels market laying down the strategies that are adopted by top companies to overcome the roadblocks in the acquisition of land for cultivation of feedstock. Another significant barrier in the commercial production of such biofuels is cost. Typically the cost of biodiesel produced from microalgae, a prospective feedstock comes at many times higher than the current price of diesel. Due to very high oil content found in Algae, it is considered to be the most preferred raw material which is used in the production of second generation Biofuels.

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