Global biofuels capacity to reach 61 bn gallons per year in 2018

Global biofuels capacity will grow to 61 billion gallons per year (BGY) in 2018, up from 55.1 BGY in 2014. Ethanol and biodiesel will continue to dominate with 96 percent of the capacity in 2018, but novel fuels and novel feedstocks will be major drivers of capacity growth, according to Lux Research.
 
Novel fuels and novel feedstocks will grow at a rapid 27% and 16% compound annual growth rate (CAGR), respectively, through 2018. Ethanol and biodiesel will grow at a slower 2% rate but will reach capacities of 40 BGY and 19 BGY, respectively.
 
“While ethanol and biodiesel dominate global biofuel capacity today, limits on their growth mean that novel fuels like renewable diesel, biojet fuel and biocrude are crucial to the future of the industry. Producers also need to tap into novel feedstocks like waste oils, non-edible biomass, and municipal solid waste to push the industry beyond food-vs.-fuels competition,” said Victor Oh, Lux Research Associate and lead author of the report titled, ‘Biofuels outlook 2018: Highlighting emerging producers and next-generation biofuels’.