The global advanced biofuel market is likely to grow to $ 44.6 billion by 2021, at a CAGR of close 44 % by 2021, according to a latest report by Technavio on April 17, 2017.
Advanced biofuels are produced by using non-food, organic, industrial, and municipal solid waste as feedstock.
Cellulosic ethanol is the most popular advanced biofuel, generating about 40 % of the overall revenue.
Cellulosic ethanol is produced using agricultural wastes through enzyme or acid hydrolysis, and is popularly used as an automotive fuel.
Technavio analysts highlight the following three factors that are contributing to the growth of the global advanced biofuel market:
One of the most important reasons for the shift to biofuels is that they are made from locally available feedstocks, which can be easily produced in any supportive environment.
They not only reduce the dependency on petroleum-based energy sources but also benefit the agricultural sector by providing a financially beneficial avenue for their wastes.
Alternative fuels are garnering more interest, due to the uncertainty in global fuel prices, energy security, and the continuous rise in emission levels.
Advanced biofuels are clean sources of energy that greatly reduce carbon emissions and exhibit commercial possibilities, leading to increased interest in their production.
Some countries have set regional targets regarding the use of biofuels as a pure mix or as blends.
In countries such as Germany and India, governments are directing the use of biodiesel and bioethanol in their public transport systems.
The Renewable Energy Directive (RED) established by the European Union (EU) aims at having 10 % of the transportation system use renewable energy by 2020.