According to a new report from GlobalData, government incentives and fuel demand are helping to boost biofuels markets. “Biofuels (Biodiesel and Bioethanol) Market – Global Production, Regulations, Export-Import Analysis and Key Country Analysis to 2020,” found that countries in Europe, Asia and North America (U.S.) are heavily involved in biofuel production – both ethanol and biodiesel.
Ethanol production globally began in ernst in 2003 and has grown significantly with the help of government subsidies. Canada and China both have blending targets, as well as the U.S. who passed a Renewable Fuels Standard (RFS2) to drive the use of biofuels. In 2003, production numbers were 33,514 million liters and grew to 105,608 million liters by 2011. The Compound Annual Growth Rate (CAGR) was 15.4 percent during this time period and the report expects production to grow another 4.4 percent between 2011-2020.
Biodiesel production picked up speed on a global level in 2005, and has also seen various government subsidies and incentives spurring growth. Key biodiesel exporters in 2010 were Germany, China, the Netherlands, Argentina, Belgium and the U.S. In 2005, global production of biodiesel was 4,854 million liters, and grew to 23,579 million liters by 2011. Biodiesel boasted a CAGR rate of 30.1 percent and is expected to grow an additional 3.5 percent between 2011-2020 for an annual production level of 4,205 million liters.
The report says the the growth demonstrates the importance of government and environmental policy for the current growth of the industry. It also concludes that future production increases will be dependent on similar support from global governments.