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Biofuels face sharp slowdown as next-generation fuels emerge: Lux Research

The industry has seen a 20% annual growth rate since 2005, but now is transitioning to higher-yielding fuels such as renewable diesel and butanol

BS B2B Bureau  |  Boston, Massachusetts 

According to Lux Research, the 53.2 billion gallon a year (BGY) biofuel industry is all set for a huge slowdown in capacity growth, to a 3.2% annual rate from 2013 to 2017 – reaching 60.4 billion gallons – off from 19.6% annually from 2005 to 2013.
 
The sharp decline is on account of a significant industry transition to novel fuels and feedstocks, to enable long-term growth in the face of impediments like the food vs fuel debate and the imminent blend limits for and ethanol. Next-generation – such as and – that can offer higher blends, in contrast, are not quite mature.
 
“Next-generation feedstocks like waste oils and cellulosic biomass are not tied up in the food supply and could unlock significant economic advantages, assuming novel conversions commercialise,” said Andrew Soare, Senior Analyst and the lead author of the report titled, ‘Emerging feedstocks and fuels spark biofuel capacity expansion through 2017’.
 
He added, “Meanwhile, next-generation fuels like will break down current barriers and drive long-term biofuel capacity expansion.”  
 
As per study, ethanol’s dominance is likely to continue. Ethanol, which accounted for 65.9% of global biofuel capacity in 2013, will slightly increase its share to 66% in 2017. Other fuels, such as renewable diesel, butanol, biojet and biocrude, will grow at a significantly higher 18.7% annual rate, but remain just 3.3% of all
 
is expected to lead the next-generation Driven by technology, will emerge as the leading next-generation fuel, attaining a capacity of 1.1 BGY in 2017. from waste will emerge as a key biofuel process.
 
study predicts slower growth for cellulosic ethanol. Companies led by Beta Renewables, POET-DSM and Abengoa have announced 782 MGY of cellulosic ethanol capacity but only 384 MGY will come to fruition. 

First Published: Fri, March 14 2014. 11:32 IST
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Biofuels face sharp slowdown as next-generation fuels emerge: Lux Research

The industry has seen a 20% annual growth rate since 2005, but now is transitioning to higher-yielding fuels such as renewable diesel and butanol

The industry has seen a 20% annual growth rate since 2005, but now is transitioning to higher-yielding fuels such as renewable diesel and butanol According to Lux Research, the 53.2 billion gallon a year (BGY) biofuel industry is all set for a huge slowdown in capacity growth, to a 3.2% annual rate from 2013 to 2017 – reaching 60.4 billion gallons – off from 19.6% annually from 2005 to 2013.
 
The sharp decline is on account of a significant industry transition to novel fuels and feedstocks, to enable long-term growth in the face of impediments like the food vs fuel debate and the imminent blend limits for and ethanol. Next-generation – such as and – that can offer higher blends, in contrast, are not quite mature.
 
“Next-generation feedstocks like waste oils and cellulosic biomass are not tied up in the food supply and could unlock significant economic advantages, assuming novel conversions commercialise,” said Andrew Soare, Senior Analyst and the lead author of the report titled, ‘Emerging feedstocks and fuels spark biofuel capacity expansion through 2017’.
 
He added, “Meanwhile, next-generation fuels like will break down current barriers and drive long-term biofuel capacity expansion.”  
 
As per study, ethanol’s dominance is likely to continue. Ethanol, which accounted for 65.9% of global biofuel capacity in 2013, will slightly increase its share to 66% in 2017. Other fuels, such as renewable diesel, butanol, biojet and biocrude, will grow at a significantly higher 18.7% annual rate, but remain just 3.3% of all
 
is expected to lead the next-generation Driven by technology, will emerge as the leading next-generation fuel, attaining a capacity of 1.1 BGY in 2017. from waste will emerge as a key biofuel process.
 
study predicts slower growth for cellulosic ethanol. Companies led by Beta Renewables, POET-DSM and Abengoa have announced 782 MGY of cellulosic ethanol capacity but only 384 MGY will come to fruition. 
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Business Standard
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Biofuels face sharp slowdown as next-generation fuels emerge: Lux Research

The industry has seen a 20% annual growth rate since 2005, but now is transitioning to higher-yielding fuels such as renewable diesel and butanol

According to Lux Research, the 53.2 billion gallon a year (BGY) biofuel industry is all set for a huge slowdown in capacity growth, to a 3.2% annual rate from 2013 to 2017 – reaching 60.4 billion gallons – off from 19.6% annually from 2005 to 2013.
 
The sharp decline is on account of a significant industry transition to novel fuels and feedstocks, to enable long-term growth in the face of impediments like the food vs fuel debate and the imminent blend limits for and ethanol. Next-generation – such as and – that can offer higher blends, in contrast, are not quite mature.
 
“Next-generation feedstocks like waste oils and cellulosic biomass are not tied up in the food supply and could unlock significant economic advantages, assuming novel conversions commercialise,” said Andrew Soare, Senior Analyst and the lead author of the report titled, ‘Emerging feedstocks and fuels spark biofuel capacity expansion through 2017’.
 
He added, “Meanwhile, next-generation fuels like will break down current barriers and drive long-term biofuel capacity expansion.”  
 
As per study, ethanol’s dominance is likely to continue. Ethanol, which accounted for 65.9% of global biofuel capacity in 2013, will slightly increase its share to 66% in 2017. Other fuels, such as renewable diesel, butanol, biojet and biocrude, will grow at a significantly higher 18.7% annual rate, but remain just 3.3% of all
 
is expected to lead the next-generation Driven by technology, will emerge as the leading next-generation fuel, attaining a capacity of 1.1 BGY in 2017. from waste will emerge as a key biofuel process.
 
study predicts slower growth for cellulosic ethanol. Companies led by Beta Renewables, POET-DSM and Abengoa have announced 782 MGY of cellulosic ethanol capacity but only 384 MGY will come to fruition. 

image
Business Standard
177 22