| |
 GREEN ENERGY
PALM OIL
BIODIESEL
|
|
|
Biodiesel - Global market
Dwindling petroleum-based fuel resources and their rapidly rising costs, as well as concerns of global warming accelerated by fossil fuel emissions are the main reasons behind the quest for cleaner, renewable, sustainable and biodegradable fuels.
Countries around the world, led primarily by the EU members and joined by the USA, are promoting increased production and use of biofuels, mainly biodiesel.
Biodiesel can be used to replace petroleum diesel, without requiring modifications to vehicle engines. It can also be blended with conventional diesel at different levels, producing a biodiesel blend. Its main advantages are its high energy yield and its drastically reduced emissions of carbon dioxide (78%); sulfur (100%); carbon monoxide (48%); particulate matter (47%); and hydrocarbon emissions, which form harmful ozone (85%) resulting in a reduction of 94% in cancer causing potential.
The total world production of biodiesel in 2006 was estimated at 4.8 million tons. Europe is the largest geographic biodiesel market worldwide, with an approximate share of 77% of the worldwide market in 2006, followed by the USA, with an approximate share of 13%, and ROW with 10%. The EU biodiesel market grew by more than 50% in the year 2006, following a 65% growth rate in 2005.
The global biodiesel market is estimated to reach 37 billion gallons (140 billion liters) by 2016, growing at an average annual rate of over 30%. Europe is expected to continue being the major biodiesel market for the next decade, followed by the USA market.
EU
The EU is the worlds largest producer of biodiesel driven by biofuel directives, tax exemptions and agricultural land policy. Biodiesel production has been growing at an annual rate of 35% since 2002.
In 2005, the EU produced 4 billion liters (1 billion gallons) of biodiesel; with rapeseed being the main feedstock. Experts' production estimates for 2007 are double this quantity.
In 2006, Germany was the leading biodiesel producer, with over 2.6 million tons produced in 2006. It was followed by France, which produced 743,000 tons; Italy, which produced 447,000 tons; the UK with 192,000 tons; and Austria with 123,000 tons. Germany, Italy and France together were responsible for the production of 70% of the total global biodiesel in 2006, and are expected to continue playing a major role.
Most EU member states have introduced supportive legislative frameworks, including tax incentives and mandatory targets, with the aim of increasing biodiesel production.
EU member states published a white paper on community strategy and an action plan on renewable energy sources in the year 2000. Its aim was to promote alternative energy sources to enable achieving the goal of having 23% of road transport be supplied by alternative energy sources by the year 2020.
Presently, there are almost 200 fully operational biodiesel plants throughout Europe; dozens of additional ones are presently under construction. As they become operational, demand for feedstock will dramatically increase.
EU biodiesel consumption forecasts are 19 million tons per year by 2015.
USA
Growing awareness in the USA to the need to promote the production and use of biofuels is increasing. This is evidenced in the Renewable Fuels, Consumer Protection, and Energy Efficiency Act of 2007, which sets higher fuel efficiency standards and boosts production of domestic biofuels. Specifically, it calls for ethanol production from corn and other sources, such as woodchips and switchgrass, to increase nearly fivefold over the coming 15 years. However, the USA also recognizes that even if it converted 100% of its farmland to providing feedstock for ethanol production, it would produce approximately 100 billion gallons (380 billion liters) a year, while the USA consumes approximately 140 billion gallons (530 billion liters) a year for gasoline alone. Clearly, ethanol is not the only answer.
There are presently 17 large-scale biodiesel plants in the USA, producing 325 million gallons (1.3 billion liters), with soybeans comprising their main feedstock. 36 new plants are under construction or are in the pre-construction phase, and are scheduled to be operational in the near future bringing the total production capacity to 1.2 billion gallons (4.5 billion liters) annually (the USA presently consumes more than 40 billion gallons (151.4 billion liters) of diesel fuel every year).
The production capacity of average US plants is 29 million gallons (110 million liters) of biodiesel per year; however, plans to construct larger plants, capable of producing more than 80 million gallons (300 million liters) a year, have been announced by several companies. This rapid growth is due to the U.S. Federal Governments Renewable Fuels Standard (RFS), which aims for 7.5 billion gallons (28.4 billion liters) of renewable fuels by 2012; as well as to individual state incentives and mandates.
The USA is expected to gradually become a major biodiesel market (it is presently a major geographic market for bioethanol) in response to record crude oil and highway fuel prices, as well as incentives provided by the Energy Policy Act of 2005 (EPACT05) and by various states. The USA's demand for biodiesel fuel is projected to increase significantly by 2015.
Asia Pacific
Interest in biodiesel is increasing in the Asia Pacific region, and particularly in Southeast Asia. One of the main reasons is concern over high pollution levels generated by the transportation sector. Consequently, several Asian nations are introducing biodiesel policies.
South America
Brazil, which has been concentrating on the usage of ethanol, is exhibiting increased interest in biodiesel. The use of biodiesel in this country has been authorized in 2005. Present production capacity stands at 20 million liters (approximately 5 million gallons), and is planned to increase to 800 million liters (approximately 210 million gallons) by 2008, and 2,400 million liters (635 million gallons) by 2013. The main feedstocks used are castor beans, soy beans and sunflowers.
|
|
