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Higher Availability of Feedstock to Render Higher Biofuel Production in Americas
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Biofuel Market in the Americas to 2020 - Renewable Fuel Standards and Biofuel Mandates Will Stimulate Investment
Higher Availability of Feedstock to Render Higher Biofuel Production in Americas Biofuel production depends predominantly on the availability of feedstock and oil prices. The production therefore depends a lot on changing feedstock prices and oil prices. A scenario analysis between high availability of feedstock and high food prices reveals that biofuel production in the Americas would be greater in a high feedstock situation, as compared to a high oil price situation. A high feedstock situation refers to the availability of feedstock for biofuel production when the split of feedstock for fuel purposes is greater than that for food purposes in future. High oil price refers to the increase in oil prices with the current rate. Long Term Government Intervention to Drive Americas Biofuel Market Long term government intervention is expected to spur the use of biofuel in the American region. A variety of policy tools have been introduced by government which reduce the risk and uncertainty for prospective investors. Government intervention also ensures commitment in response to farmer’s concerns about energy input prices and output biofuel prices. North and South American countries also rely on subsidies, tax credits and preferential taxes to ensure that producers can be confident of surmounting the high cost of biofuel production. Import restrictions are also used to promote the emerging biofuel industry in
American countries. Most American countries have made it an essential requirement to blend biofuel with conventional fuels, which, in turn, provides a guaranteed market for biofuels. For further details, please click or add the below link to your browser: http://www.gbiresearch.com/Report.aspx?ID=Biofuels-Market-in-Americas-to-2020-Renewable-Fuel-Standards-and-Biofuel-Mandates-will-stimulate-investment&ReportType=Industry_Report&coreindustry=ALL&Title=Clean_Technology Higher Land Area Required For Biofuel Production Will Be a Big Restraint for the Americas’ Biofuel Industry Increasing oil prices and the need for energy independence will spur the development of the biofuel market in the Americas, but the role of biofuel in supplies required to meet the increase in demand is likely to remain the same, or even lessen, because of its land intensity. In the US, substituting all current gasoline consumption with ethanol would require more land for corn production than is presently available in the whole agricultural industry. Technology will be central to boosting the role of biofuel. If suitable technological advancement is not available at the proper time, then land area will be a major challenge for the development of the biofuels required to meet the demand of the Americas.
Americas Will Produce 3,606 Mbblpd of Biofuel By 2020 Biofuel production in the Americas in 2005 was 550.4 million barrels per day (Mbblpd). Production of biofuel rose to 1,308.2 Mbblpd in 2009, with a compound annual growth rate (CAGR) of 24% for the period 2005–2009. GBI Research estimates that the annual biofuel production by the end of 2020 will be 3,606 Mbblpd. The CAGR for the period 2010–2020 will be 9%. Sustainability Challenge – “The war has already commenced” First generation fuels, such as ethanol, which is produced from corn, compete for land with food crops. The biofuel industry is dedicated to using biofuels which are grown in a sustainable way and do not compete for land or water with food crops. This is a major challenge for the growth of sustainable biofuels which do not take up productive arable land which can be used for food production. This issue has already started badgering the leaders of the biofuel market. GBI Research believes that in addition to developing fuels which reduce sustainability challenges, the biofuel industry will also face challenges in developing fuels which can be mass produced at a low cost, with high yield and minimal environmental impact. To overcome these sustainability challenges, extensive research is required in the field of next generation fuels, which will potentially reduce the use of arable land and will also deliver higher yields.
GBI Research's new report, “Biofuels Market in Americas to 2020-–Renewable Fuel Standards and Biofuel Mandates Will Stimulate Investment " provides key information and analysis on the market opportunities in the Americas Biofuel Market. The report provides the latest information on the biofuels production and consumption with a detailed assessment of the market forces influencing the Americas biofuel market. The report also provides analysis of key countries which includes US, Brazil and Canada. This report is built using data and information sourced from proprietary databases, primary and secondary research and in-house analysis by GBI Research's team of industry experts. For further details, please click or add the below link to your browser: http://www.gbiresearch.com/Report.aspx?ID=Biofuels-Market-in-Americas-to-2020-Renewable-Fuel-Standards-and-Biofuel-Mandates-will-stimulate-investment&ReportType=Industry_Report&coreindustry=ALL&Title=Clean_Technology Visit our report store: http://www.gbiresearch.com
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