San Jose, California (PRWEB) July 18, 2007
Worldwide economies are struggling to cope with rising crude oil prices, and must also face environmental concerns associated with fossil fuel usage. Countries across the world are now seeking viable alternatives to fossil fuels that are cost-effective and environment friendly. As a result, biofuels are gaining popularity, particularly in the transport sector, across the globe. Biofuels, produced from common crops such as rapeseed and canola, reduce environmental pollution due to their biodegradable nature.
Biofuels are naturally produced. Biodegradable fuels such as bioethanol, biodiesel and methane find usage in various sectors. Biofuels are produced from natural renewable feedstock such as soybean, canola, rapeseed and other vegetation. Consumption of biofuels is aimed at minimizing over-dependence of conventional and expensive fossil fuels. Apart from reducing pollution, biofuel usage also offers economic benefits through increased job opportunities, and contributes in strengthening the agricultural sector.
The rising popularity of biofuels is mainly due to its environmental benefits in lowering smog and greenhouse emissions. Also fuelling Biofuel popularity is the proffered promise of respite from the ever-rising oil prices, and the creation of alternate markets for farmers. Cellulose ethanol, produced from wastes such as wood chips and straw is rising in popularity, given its abundant availability, unlike traditional ethanol, wherein the raw materials need to be grown and cultivated. In the European Union rapeseed, soymeal and soyoil are soaring in demand given their efficacy as raw materials in biofuel generation.
World Biodiesel market is forecast to reach in excess of 4.7 billion gallons by 2010 with a high CAGR of 33.79% over the 2000-2010 analysis period. Though Europe, with a share estimated at 84.16% in 2006, constitutes the largest market, and will continue to do so for the coming years, major growth is expected to emanate from the United States that is projected to maintain a CAGR of 74.53% over 2000-2010.
Automobile Applications market for biodiesel, with an estimated share of 55.73% in 2006 and a CAGR of 33.88% over 2000-2010, constitutes the largest as well as the fastest growing end use application. Other applications independently analyzed include Mining Applications market and Marine Applications market. Both these applications are also expected to register CAGRs in excess of 33% over the aforementioned period.
Biodiesel and Bioethanol are the primary biofuels in use across the world. Even though bioethanol is the most widely consumed biofuel in the world, the demand for biodiesel is rapidly growing. Rising environmental pollution, volatile prices of petroleum diesel, and mandatory Kyoto Protocol specifications are critical factors that are increasing demand for biodiesel worldwide, particularly in Europe and the US.
Biodiesel market can be broadly classified into three end-use applications, namely automobiles, mining and marine. Germany, France and Italy represent the leading consumers of biodiesel. Presently, biodiesel is commercially produced in Germany, Italy, Austria, the Czech Republic, the US and Malaysia. Pure biodiesel or B100 is widely used in Germany, Italy and Austria.
Biodiesel market is growing rapidly across the world, driven primarily by fiscal incentives, and mandatory biodiesel blends. Europe has stipulated that 2.0% of all diesel and petrol used in transport sector must originate from renewable sources of energy. France has already implemented blended 2.0% biodiesel for transportation sector. Thailand is aiming for 10% mandatory biodiesel blend by 2012, while India targets 2020 for achieving 20% blend. Such mandatory requirements are expected to fuel the demand for biodiesel across the world.
Increased concerns over global warming are fueling the demand for alternative fuels such as biodiesel. Countries across the world are issuing mandatory legislations for ensuring increased usage of biodiesel for minimizing global warming, and to meet the requirements of Kyoto Protocol.
The run for biofuel has been on for quite a few years, sparked by rising concerns about the rapid depletion of fossil reserves, and skyrocketing prices of petroleum. The shoes were strapped up, governments were fervent, and the run to production was flagged off by set up of few biofuel plantations. It could have past many milestones, but suddenly there emerged a rampant realization that the gun must have been misfired, and the hype seems to be fizzling out with the fact books hard-weighing the prospects of the 'wonder-fuel'.
Major companies covered include Ag Environmental Products, LLC, Archer Daniels Midland Company, BDI Anlagenbau GmbH, Biodiesel Industries, Inc., Environmental Alternatives LLC, Flint Hills Resources LP, Green Star Products, Inc., Griffin Industries, Mitteldeutsche Umesterungswerke Bitterfeld, OceanAir Environmental Fuels and Glycerine, LLC, Oelmuhle Hamburg AG, Organic Fuels LLC, Pacific Biodiesel, Inc., Petroplus International NV, Southern States Power Company, Inc., Stepan Company, Topia Energy, Inc., West Central and World Energy Alternatives LLC.
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