In Florida, Biofuels Digest reports that 83 percent of bioenergy executives are more optimistic about their organization’s prospects for growth today than 12 months ago, and that 69 percent are more optimistic about the industry’s prospects for growth today than 12 months ago.
The findings were among the highlights of the Fall 2010 Bioenergy Business Outlook Survey conducted by the publication in August, which drew response from 100 bioenergy-related companies representing an estimated 14,700 green jobs and more than $11 billion in sales. The global survey attracted response from six continents.
Respondents said that they expected their companies to increase revenue individually over the next 12 months by an average of 144 percent, and to increase green jobs at their individual companies by 68 percent over the next 12 months.
Respondents said that they expected industry revenue to grow by 41 percent over the next 12 months.
In finance, 51 percent reported that they had sought additional financing in the past 12 months and that 56 percent were unsuccessful in the effort. 70 percent said that they would seek additional financing in the next 12 months. 75 percent said that they expected to see more completed IPOs in 2011 than 2010, and 86 percent said they expected more mergers and consolidations in 2011.
In commenting on support from their respective national governments, 69 percent rated their governments “highly” or “moderately” supportive of bioenergy, while 20 percent rated their governments “moderately” or “highly” unsupportive, with 11 percent opting for “neutral”.
Among the drivers for potential growth, respondents rated “rising demand for alternative fuels” as the most important driver of growth for their organizations over the next 12 months, with 56 percent identifying this as an important factor. 46 percent cited “new technology or intellectual property,” 42 percent cited “favorable government mandates, tax credits or tariffs” and 41 percent cited “new finance”. Other factors cited included grants, subsidies, new partners, new production capacity, more aggressive marketing and other factors.
Among government policies favored by respondents, “Increased grants, production subsidies or incentives” was rated as the measure that would create strong opportunities for industry revenue and job growth over the next 12 months, with 55 percent of respondents citing this as the top factor. Carbon price legislation was cited by 44 percent, new mandates by 40 percent, New or extended production or investment tax credits by 39 percent, and better loan guarantee programs and higher blending standards by 38 percent each. Other factors cited by respondents included blender pump mandates, more R&D spending, and increased tariffs. Only 2 percent opted for “Status quo – Everything staying as it is.”
Among fuel types, 66 percent of respondents indicated that they expected Cellulosic ethanol to reach 1 billion gallons or more (3.8 billion liters or more) in global production volume by 2020. 55 percent said that renewable diesel would reach that mark, and 41 percent opted for “military biofuels” hitting the billion gallon mark. Only 37 percent projected that 1 billion gallons of aviation biofuel would be produced in 2020, with 36 percent opting for algal biofuels, 27 percent for biobutanol, and 25 percent for renewable gasoline.
Summary details from the survey are available to Digest newsletter subscribers by clicking on the link in their newsletters, or by signing up for a free Digest subscription here. . A detailed analysis of results, including breakdowns by region, company size, job title and industry sector, will be provided free to survey respondents, and will be available to all as a paid subscription report.
The Digest’s Bioenergy Business Outlook survey is conducted four times per year.