Category Archives: Biofuels

After healthy growth over the past decade, the global biofuels industry is entering a new era marked by feedstock flexibility, product neutrality, and sustainability.  As a near-term solution, biofuels are a proven alternative to petroleum-based fuels.  Long term, biofuels could radically alter the fuel market’s geopolitical landscape by meeting an expanding portion of consumer demand in ground, aviation, and maritime transportation fuel markets. While first generation biofuels derived from corn starch, sugarcane, rapeseed, and soy are projected to underpin growth over the next decade, the emergence of advanced conversion pathways and non-food feedstocks will unlock considerable production potential throughout the world.  Despite huge demand for biofuels from transportation end-markets, however, access to inexpensive feedstocks and financing hurdles remain challenging obstacles for biofuels production trying to keep pace with emerging mandates.  According to a recent report from Pike Research, widespread commercialization will ultimately depend on whether current trends lead to price parity with petroleum-based fuels over the next decade.

“Although many feedstocks, technologies, and conversion pathways currently share the same tent, the coming decade promises to be one of shakeouts,” says senior analyst Mackinnon Lawrence.  “Early bets on cellulosic pathways have yet to deliver significant volumes, opening up opportunities for a number of advanced pathways.  Meanwhile, it remains unclear whether the shift toward high-value, low-volume bio-chemical and product markets as a source of near-term revenue will accelerate or impede biofuels production scale-up efforts.” Continue reading →