The Top Five Biofuel Markets in 2021
-
United States of America, Brazil, Germany, Colombia, and France were the top five Biofuel markets (by value) in 2021
-
United States of America was the leading Biofuel market in 2021. The market value of Biofuel in United States of America recorded a value of $36,893.2 million, down 0.9% YoY, while the underlying volume in this market grew by 2.3% YoY
-
Brazil ranked second (by value in 2021) with a market value of $19,957.8 million (up 4.2% YoY), with the other three markets (Germany, Colombia, and France) having a cumulative market value of $14,607.9 million in 2021
The Top Five Biofuel Markets in 2021
Increasing energy demands worldwide pose a greater threat towards the climate and the Paris Agreement’s goal of reaching climate neutral world by 2050. Combatting climate change forces, the world to switch to low carbon sources of energy such as Biofuels. Fossil fuels being one of the largest sources of greenhouse gas are pushing companies to shift to the production of biofuels. For example, Shell has committed to reducing its carbon footprint by a fifth by 2035, which has resulted in the company producing ethanol from sugar cane through Raízen.
Biofuels are fuels derived from biomass i.e., plant, animal waste, algae, and is considered a renewable source since it can be replenished readily unlike oil, coal, and natural gas. Biofuels are segmented into Biodiesel and Ethanol. Biodiesel is manufactured from vegetable oils and animal fats while Ethanol is a form of alcohol produced from the feedstock.
Global Biofuel Market is expected to grow as the world targets carbon neutrality by 2050. The United States of America is the leading player in the biofuel market followed by Brazil, Germany, Colombia, and France among the top five markets.
The USA’s biofuel market is valued at $36,893 Mn, with a market consumption volume of 14,830 Mn gallons. Brazil is the second-largest player, which is valued at $19,958 Mn and with a market volume of 8,681 Mn gallons. The cumulative market value of the other three top players – Germany, Colombia, and France, touched $14,608 Mn.
USA and Brazil have been significant players in this market. This has been aided by government mandates on biofuel usage, with Brazil using a fast-track legislative tool to speed up the implementation of the RenovaBio program. This program aims to use biofuels to cut greenhouse gas emissions. The Energy Independence and Security Act in the USA aimed at achieving greater energy independence and better energy security. This act includes increasing the supply of non-conventional energy sources by setting a mandatory Renewable Fuel Standard (RFS) requiring fuel producers to use at least 36 billion gallons of biofuels by 2022, and by providing for more incentives for the development of renewable energy technologies. Government initiatives such as this have spurred growth in the market till now and will continue to do so in the coming years. Furthermore, the US Department of Agriculture Office of Rural Development is also offering loan guarantees for the development, construction, and retrofitting of commercial-scale biorefineries.
Related Data & Insights
Still looking?
Don’t wait - discover a universe of connected data & insights with your next search. Browse over 28M data points across 22 industries.
Explorer
Access more premium companies when you subscribe to Explorer
Get in touch about GlobalData Company reports
Contact the team or request a demo to find out how our data can drive your business forward