Mar 17 2009
According to a new technical market research report, THE NORTH AMERICAN MARKET FOR LIQUID BIOFUELS (EGY064A) from BCC Research, the North American market for liquid biofuels was worth $37.1 billion in 2008. This will decrease slightly to $34.3 billion in 2013, a compound annual growth rate (CAGR) of -1.6%.
The market is broken down into first generation biofuels and other fuels. First generation biofuels currently dominate the market and generated $37.1 billion in 2008. This is expected to decrease slightly to $34.0 billion in 2013, for a CAGR of -1.7%.
Other fuels were worth $2.0 million in 2008 and this segment is expected to increase to $308.0 million in 2013, for a CAGR of 173.8%.
Biofuel is a solid, liquid or gaseous fuel derived from recently dead biological material, as distinguished from fossil fuels derived from long dead biological material. Theoretically, biofuels can be produced from any biological carbon source, though the most common sources are photosynthetic plants. Currently, the most common biofuels are liquid fuels used primarily in transportation applications.
A profitable biofuels market depends on a number of interrelated factors, including the price of oil, the ready availability of inexpensive feed materials, continued government support (financial and legislative), improvements in process technology that cut costs for the next generation of biofuels, and competition from other alternatives to fossil-based products.
The most important driver for the interest in all alternative fuels, including biofuels, is the high price of oil, which during the past eight years has risen to record levels. It should be noted that current prices have collapsed to $44.0 per barrel from a high of $150.0 per barrel. However, most forecasts predict that oil will bounce back following a global economic recovery.
