Biofuels for Road Transport at $338 Billion in Annual Revenue by 2022
Over the next 8 years, biofuels, according to Navigant Research, are expected to become a larger part of the fuel mix for road transportation, accounting for 7.5 percent of liquid fuels consumed in the sector by 2022 and totaling approximately $338 billion in annual revenue.
The current annual number is $166.5 billion.
Navigant notes that many entities see biofuels as a promising solution to solving energy security, environmental, and economic challenges associated with petroleum dependency.
“Over the last 10 years, growth in the biofuels sector has been driven by the increase in ethanol production capacity in the United States and Brazil, and in biodiesel in Europe,” says Scott Shepard, research analyst with Navigant Research.
Commercial-scale production of cellulosic feedstock biofuels is just getting underway, according toNavigant and recent developments in drop-in biofuels propelled by the aviation industry and the U.S. Department of Defense are driving down the costs.
Meanwhile, large oil-consuming nations concerned about energy security, climate change, and economic stagnation are driving global biofuels markets through a number of policy platforms, principally biofuels mandates.
Category: Fuel & Oil, General Update, Green
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