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Biodiesel Market Growth and Industry Key Players are Western Dubuque Biodiesel, Delta American Fuel, Imperium Renewables, DuPont, Deerfield Energy, Crimson Renewable Energy, China Biodiesel International Holding

Biodiesel Market

Biodiesel Market

Global Biodiesel Market size is expected to move up at a moderate rate in the next few years. Biodiesel is derived from animal fats, cooking oils, yellow grease, and vegetable oils by a process known as transesterification which converts fats and oils into chemicals. It is a substitute fuel similar to fossil or conventional fuels.

Need for energy independence and increasing environmental concern have driven the demand for biodiesel market worldwide. The product has the primary feature to reduce greenhouse gas emissions, which were totaled to over 6 billion metric tons of carbon dioxide equivalents. Also, it is biodegradable and helps to produce renewable liquid fuel for transportation purpose. Being domestic in nature, it reduces the dependency on the inherent lubricity, high flash point and imported petroleum. Moreover, government policies and tax incentives to promote the product usage will also have a significant influence on the global biodiesel market in coming years.

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The biodiesel market worldwide is in a transition phase of rapid growth and development, creating new opportunities in the coming years. It has cetane ratings and outstanding lubricating properties in comparison to low sulfur diesel fuels. Depleting petrochemical reserves in oil rigs all over the globe will likely increase the product demand in coming years. The global petroleum reserve is expected to last till nearly 2050. This has encouraged researchers to look for suitable alternatives and create new growth avenues for the overall market.

With shrinking land for agriculture, increasing oil & fat demand and ever rising population, high competition in the feedstock demand for the product manufacturing is likely to hamper the future growth. There has been a major issue of variation in the crude oil prices in the past several tears. These variations have affected the consumption volume of biodiesel, hence restraining the growth of the global market.

The segmentation of biodiesel market can be done based on feedstock, application and geographical regions. On the basis of feedstock, the market is segregated into vegetable oil, animal fats and brown grease or trap grease. Vegetable oil may be obtained from soybean, rapeseed or palm. Animal fats are primarily derived from byproducts from the animal meat. It consists of lard or white grease from swine processing, poultry which may be from the processing of turkey, chicken and other birds, and tallow from processing cattle.

Based on the applications, biodiesel market can be segregated into two major, mainly transportation and power generation. The product can be easily used in existing fuel engines, infrastructure, and vehicles with basically no changes. It can be used, stored, pumped, and burned just as the petroleum based diesel fuel. It can be used in blended form with other petroleum diesel fuels or in its pure form. In the power generation sector, in 2015, the United States generated about 40 million kilowatt-hours (kWh) of electricity using biodiesel.

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Asia Pacific and Europe market has a huge opportunity in countries like India, UK, and China, due to the ever-rising diesel prices and vast number of diesel vehicles. With the growing existing feedstock efficiency, the market will likely have a pattern shift in the forecast span. In the upcoming years, the growth of algae as new feedstock sources is also expected for product manufacturing. Fuels used for transportation still makes up for a major chunk of share of the market. The European region is a noteworthy product manufacturer with countries such as France and Germany being the top producers.

The biodiesel market in the United States and Europe has reached to remarkable levels of production capacities. On account of government regulations and policies in the countries of Asia Pacific and Latin America, new opportunities are on a rise. These opportunities include exports, feedstock development and improved production. The government also continues to actively develop and support suitable and alternative low cost feedstocks such as tallow, vegetable oil, castor, algae, and jatropha to refer some.

Some of the key players in the global biodiesel market are Western Dubuque Biodiesel, Delta American Fuel, Imperium Renewables, DuPont, Deerfield Energy, Crimson Renewable Energy, China Biodiesel International Holding, Diversified Energy Corporation, XL Renewables, Blue Marble Energy Corp., American Energy Producer, ACCIONA Energy, LLC, and Green Earth Fuels of Houston to name a few.

About Global Market Insights:

Global Market Insights, Inc., headquartered in Delaware, U.S., is a global market research and consulting service provider; offering syndicated and custom research reports along with growth consulting services. Our business intelligence and industry research reports offer clients with penetrative insights and actionable market data specially designed and presented to aid strategic decision making. These exhaustive reports are designed via a proprietary research methodology and are available for key industries such as chemicals, advanced materials, technology, renewable energy and biotechnology.

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Global Market Insights, Inc.
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