Increasing concern over global warming and the security of mineral fuel supplies (reliance of foreign resources) are driving the growth of the biofuel industry. Nations across the globe are mandating the introduction of biofuels, particularly biodiesel, to curb global warming and meet Kyoto Protocol requirements. Continuing unrest in the Middle East and volatile fuel prices are also encouraging the use of biofuels as substitutes for petrol and diesel.
Growth is being driven through mandated biodiesel blends and fiscal incentives. From 2005, the EU has directed that 2% of the energy content of all petrol and diesel for transport must come from renewable sources. All diesel sold in France is already blended with 2% biodiesel. In India, a 20% blend is possible for 2020. Thailand is aiming for a 10% blend by 2012. Meeting these targets will depend on feedstock availability and investment in production capacity, but the prospects for growth look strong.
Biodiesel in Europe
Biodiesel is Europe's dominant alternative fuel. As part of a range of measures drawn up in response to international agreements to reduce greenhouse gas emissions, the EU is encouraging greater use of biofuels. Under the 2003 EU Biofuels Directive, a 2% share of the energy content of all petrol and diesel for transport must come from renewable sources, including both biodiesel and bioethanol. This must rise to 5.75% by the end of 2010. The EU is preparing to issue a Biomass and Biofuels Action Plan with the goal of increasing the share of renewable resources to 12% by 2010.
The Directive will create a demand of at least 9.2 million tonnes of biodiesel per year by 2010. However, current refining capacity is only 2.2 million tonnes per year.
Biodiesel in the U.S. and Canada
Expected market demand and production incentives suggest that volumes in these industrial markets could exceed 1.1 billion GPY (3.8 million MTPY) by 2007.
Growth is being driven through mandated biodiesel blends and fiscal incentives. From 2005, the EU has directed that 2% of the energy content of all petrol and diesel for transport must come from renewable sources. All diesel sold in France is already blended with 2% biodiesel. In India, a 20% blend is possible for 2020. Thailand is aiming for a 10% blend by 2012. Meeting these targets will depend on feedstock availability and investment in production capacity, but the prospects for growth look strong.
Biodiesel in Europe
Biodiesel is Europe's dominant alternative fuel. As part of a range of measures drawn up in response to international agreements to reduce greenhouse gas emissions, the EU is encouraging greater use of biofuels. Under the 2003 EU Biofuels Directive, a 2% share of the energy content of all petrol and diesel for transport must come from renewable sources, including both biodiesel and bioethanol. This must rise to 5.75% by the end of 2010. The EU is preparing to issue a Biomass and Biofuels Action Plan with the goal of increasing the share of renewable resources to 12% by 2010.
The Directive will create a demand of at least 9.2 million tonnes of biodiesel per year by 2010. However, current refining capacity is only 2.2 million tonnes per year.
Biodiesel in the U.S. and Canada
Expected market demand and production incentives suggest that volumes in these industrial markets could exceed 1.1 billion GPY (3.8 million MTPY) by 2007.