Feedstock access may make-or-break biofuel industry, says Frost & Sullivan

September 12, 2014 |

In the US, Frost & Sullivan has released an analysis predicting the market revenues from biodiesel and ethanol industries will total $149.25 billion by 2018, up from $94.61 billion in 2013. According to the analysis, Europe will remain the primary consumer and producer of biodiesel. Asia-Pacific will be the fastest-growing market.

The report recognized the importance of backward integration opportunities: “Access to competitively-priced feedstock will be crucial for biofuel manufacturers to sustain profits across regions in the midst of raw material price fluctuations. Hence, they need to scout for backward integration opportunities. Biodiesel producers must also look for low-cost feedstock options such as animal fat and recycled oil to fight rising production costs.”

Concerns stemming from lack of consumer awareness may drag down the industry. It is estimated that fewer than 10 percent of the total 10.6 million flex-fuel vehicles on the road in the United States use the higher E85 ethanol blend.

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Category: Fuels

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