Top Five Markets Using Biodiesel as a Fuel in 2021
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United States of America, Brazil, France, Germany, and Sweden were the top five Biodiesel as a fuel markets (by value) in 2021
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United States of America was the leading Biodiesel as a fuel market in 2021. The market value of Biodiesel as a fuel in United States of America recorded a value of $4,705.6 million, up 4.1% YoY, while the underlying volume in this market grew by 2.1% YoY
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Brazil ranked second (by value in 2021) with a market value of $3,870.4 million (up 7.5% YoY), with the other three markets (France, Germany, and Sweden) having a cumulative market value of $9,804.1 million in 2021
Top Five Markets Using Biodiesel as a Fuel in 2021
With the projected increase in population and energy demands, an increase in greenhouse gas emissions due to the use of conventional fuels creates an urgency to shift to low carbon-alternative fuels. One of the ongoing global efforts is to promote the use of less polluting fuels such as Biofuels, Biodiesel, or Bioethanol. Automobiles using diesel or gasoline have been a major source of Greenhouse gas which is forcing governments to promote the use of blended fuels to reduce emissions. For example, countries like France have mandated companies to produce such blended fuels for vehicles and are also promoting the use of the same as aviation fuel. Companies like Shell also have taken positive steps in reducing their carbon footprint by a fifth by 2035 which has resulted in the company producing ethanol.
Biodiesel is manufactured from vegetable oils, animal fats and is a cleaner, renewable fuel which can be used as a replacement in any diesel engine. Biodiesel is also a nontoxic biodegradable fuel and contains zero sulfur or harmful aromatic compounds. It can also reduce lifecycle greenhouse gases by up to 86% as compared to petroleum and diesel.
Global Biodiesel Market is expected to grow as the world targets carbon neutrality by 2050. The top five markets in the world are the United States of America, Brazil, France, Germany, and Sweden.
In 2021, the United States of America is the leading player in this market, with a market value of $4,705.6 Mn, up 4.1% YoY, while the underlying volume market grew by 2.1% YoY. Brazil ranked second with a market value of $3,870.4 Mn, up 7.5% YoY. The other three markets - France, Germany, and Sweden, have a cumulative market value of $9,804.1 Mn in 2021.
US 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 (Biodiesel or Bioethanol) to cut greenhouse gas emissions. The Energy Independence and Security Act in the US is 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 biofuel by 2022, and 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.
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