As technology advances and regulatory frameworks
improve, there will be a growing demand for second-generation
biofuels.
WILMINGTON, Del., July 8, 2024
/PRNewswire/ -- A market size of US$
30.2 billion was estimated for second-generation
biofuels in 2021. A CAGR of 26.4% is expected from 2022 to
2031, leading to US$ 314.5
billion by 2031. Policies and regulations are
expected to continue to support advanced biofuels development and
deployment globally. A range of incentives, such as renewable fuel
standards or carbon pricing, can help drive investments and market
expansion.
Governments worldwide to encourage advanced biofuel development
and use have implemented several national policies and financial
incentives. Renewable energy standards and tax credits may be
included in incentives and renewable energy grants and grant
programs. Biofuels can become more competitive by utilizing
fermentation, gasification, and enzyme technology.
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Second-generation Biofuels Market Report
Scope:
Report
Coverage
|
Details
|
Forecast
Period
|
2022-2031
|
Base
Year
|
2020
|
Size in 2021
|
US$ 30.2 Bn
|
Forecast (Value) in
2031
|
US$ 314.4 Bn
|
Growth Rate
(CAGR)
|
26.4 %
|
No. of
Pages
|
341
Pages
|
Segments
covered
|
Feedstock, Type,
Process, Application
|
Unlike first-generation biofuels derived from food crops,
second-generation biofuels utilize non-food feedstocks such as
agricultural waste, wood chips, and grasses, which are often
discarded after crop cultivation. This approach addresses concerns
over food security and reduces the environmental impact associated
with conventional ethanol production. Regulatory policies and
incentives promoting biofuel blending to mitigate greenhouse gas
emissions further drive market growth, particularly in regions like
Brazil and the USA, where biofuel mandates are robust.
Recent capacity expansions by industry leaders underscore a
growing commitment to scaling production, exemplified by projects
doubling production capacity for sustainable aviation fuel and
cellulosic ethanol in Spain and
Brazil, respectively. These
developments signify a significant advancement towards achieving
global renewable energy targets while reducing reliance on fossil
fuels in the transportation sector.
Adapting second-generation biofuel technologies to existing
infrastructure, such as transportation and distribution systems,
will be crucial for widespread adoption. The availability of
engines and fuel infrastructure that are compatible with existing
engines will contribute to market penetration. Second-generation
biofuel production may be able to utilize a wider range of
feedstock in the future.
In order for second-generation biofuel technologies to be made
more widely available, demonstration and pilot projects must be
successful. The transportation sector may adopt these technologies
more widely, with increased production capacity and more
commercialization.
Key Findings of the Market Report
- Lignocellulose biomass accounted for 39.13% of the global
market in 2021.
- In terms of type, the biodiesel market held a substantial share
of 59.13% in 2021.
- The thermochemical process segment held the largest market
share of 53.13% in 2021.
- The transportation segment dominated the global market in 2021
with a 60.9% share.
- North America dominated the
global market in 2021 with a 47.7% share.
Global Second-generation Biofuels Market: Growth
Drivers
- Compared to first-generation biofuels, second-generation
biofuels are more environmentally friendly since they use non-food
feedstocks like agricultural remnants and lignocellulosic biomass.
This mitigates land-use concerns and does not threaten food
production. Greenhouse gas emissions reductions are a primary
driver. Second-generation biofuels can offer substantial carbon
savings compared to conventional fossil fuels, contributing to the
fight against climate change.
- A second-generation biofuel can provide a domestically produced
alternative energy source while reducing dependence on imported
fossil fuels. As a result, energy security is enhanced, and
geopolitical uncertainty in the market is reduced. Increasing
technological advancements drive the market, especially in biofuel
production and biomass conversion processes. Biofuel production
processes of the second generation are more efficient,
cost-effective, and scalable.
- A growing preference for sustainable energy may also contribute
to the growth of biofuels, as consumers become more aware of the
environment and prefer sustainable and renewable energy sources.
Policies and corporate strategies may be influenced by public
support for cleaner, greener energy solutions.
Global Second-generation Biofuels Market: Regional
Landscape
- The market for second-generation biofuels will be driven
primarily by North America. The
North American government is exploring and developing
second-generation biofuels to replace fossil fuels with sustainable
and advanced alternatives. Numerous projects have been developed
and researched to convert non-food biomass to biofuels.
Universities, researchers, companies, and institutions led these
efforts.
- Governments in North America
provided financial incentives and financial support to promote
advanced biofuels. By supporting this activity, greenhouse gas
emissions will be reduced, energy security will be enhanced, and
sustainable alternatives will be promoted. The commercialization of
second-generation biofuels was making progress for some companies.
The viability of these technologies was demonstrated through pilot
and demonstration projects.
- Agricultural residues, forestry residues, and energy crops,
such as corn stover, wheat straw, and energy crops, were utilized
as biofuel feedstock's. Food production was not considered as a
competitor in this approach. Biochemical and thermochemical
advances were crucial in converting lignocellulosic materials into
biofuels. There were several approaches under investigation and
optimization, including enzymatic hydrolysis and gasification.
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Global Second-generation Biofuels Market: Key Players
A few large vendors control the majority of the
second-generation biofuels market worldwide. Research and
development expenditures are significant in most organizations.
- Algenol Biofuels
- Clariant AG
- DuPont
- Fiberight LLC.
- GranBio
- Ineos Group Orsted AG
- POET-DS
- Advanced Biofuels LLC
- Reliance Industries
- Zea2 LLC
Key Developments
- In April 2023, Cepsa
contracted Técnicas Reunidas to perform detailed engineering
for the biggest biofuels plant for the second generation (2G) in
southern Europe, which Cepsa will
construct together with Bio-Oils at Huelva's La Rábida Energy Park
with a maximum investment of 1 billion
euros.
- In December 2023, Keppel
Corporation's Infrastructure Division signed a memorandum of
understanding (MoU) with AM Green, a company owned and controlled
by the Greenko Group of India. It
has been decided to incorporate AM Green into Keppel Corporation's
Infrastructure Division in pursuit of a collaborative effort to
produce biogenic carbon-based fuels, like 2-G ethanol,
bio-methanol, and sustainable aviation fuels (SAF). A MoU was
signed in Dubai, UAE,
in conjunction with the COP28.
Global Second-generation Biofuels Market:
Segmentation
By Feedstock
- Lignocellulose Biomass
- Field Crop Residues
- Forest Product Residues
- Others
By Type
- Biodiesel
- Bioethanol
- Others
By Process
- Biochemical Process
- Thermochemical Process
- Others
By Application
- Transportation
- Power Generation
- Others
By Region
- North America
- Latin America
- Europe
- Asia Pacific
- Middle East & Africa
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