Global Demand for Biofuel to Approach $225.9 Billion in 2028

Global Demand for Biofuel to Approach $225.9 Billion in 2028

AM Green Technology enters biofuels business

 Synopsis: Hyderabad-based AM Green Technology and Solutions B.V. has signed a binding agreement to acquire Finland's Chempolis Oy and Fortum 3 B.V. entities. The company plans to invest $1 billion to develop sustainable aviation fuel plants by 2027, aiming to advance global airline decarbonization through large-scale biorefineries using multiple feedstocks.

By ET Bureau

 Hyderabad-based AM Green Technology and Solutions B.V. (part of AM Green Group), has signed a binding agreement to acquire Finland's Chempolis Oy and Fortum 3 B.V. entities, the company said on Monday.

AM Green added that it will further advance the platform's technological capabilities to process a wider range of feedstocks and invest $1 billion to develop 0.5+ MTPA of Alcohol-to-Jet sustainable aviation fuel plants by 2027 for global airline decarbonization.

https://www.livemint.com/companies/news/am-green-biofuels-acquisition-chempolis-fortum-3-bv-sustainable-aviation-fuel-renewable-energy-biorefinery-11727071847327.html

A new report, global demand for biofuel is projected to increase 6.2% per year between 2023 and 2028 to nearly $225.9 billion. The growing challenges on energy security and the need to mitigate greenhouse gas emissions are some of the major drivers for the growth of the biofuel market. Fuels derived from renewable sources act as a means of addressing the challenges while also providing a potential low-cost alternative to expensive fossil fuels. Domestic production of biofuels from renewable sources can reduce reliance on oil imports and improve energy security.

Gains will also be supported by:

Favorable government policies promoting use of biofuels

Rising demand for cleaner fuels worldwide

Growing awareness of utilizing renewable sources to reduce greenhouse gas emissions

Key Market Players

ADM (US),

Chevron (US),

Valero (US),

Neste (Finland),

Cargill, Incorporated (US)

Münzer Bioindustrie GmbH (Austria),

Aemetis, Inc. (US),

CropEnergies AG (Germany),

Raízen (Brazil),

Blue Biofuels, Inc. (US),

Pannonia Bio Zrt. (Hungary),

GreenJoules (India),

Algenol (US).and many more…

by fuel type segment

The biofuel market for ethanol is anticipated to have the biggest market share over the forecast period. Due to its extensive history of production, use, and versatility as a gasoline addition, ethanol is frequently more in demand. Corn and sugarcane are two examples of the agricultural feedstocks used to make ethanol. The vast accessibility of these feedstocks and the presence of supply channels facilitate the uptake of ethanol.

by end-use segment

The aviation segment is expected to grow at the highest CAGR during the forecasted period, owing to the extensive decarbonization efforts in the aviation sector in North America and Europe. One of the major drivers is the usage of biofuels in military aircraft on a commercial scale. Additionally, the rising demand for air cargo transport in terms of volume is one of the drivers for the growth of aviation. The Bioenergy Technologies Office (BETO) of the US Department of Energy empowers energy firms and aviation stakeholders by advancing research, development, and demonstration to overcome barriers to widespread deployment of low-carbon sustainable aviation fuel (SAF).

Europe is expected to be the fastest-growing region in the biofuel market.

Europe is expected to be the fastest growing region in the biofuel market during the forecast period. The European region comprises major economies such as France, UK, Germany, and Poland. The biofuel market in Europe is primarily fueled by the three main types of biofuels, namely ethanol, biodiesel, and renewable diesel. Europe has actively fostered the use of biofuel through various policies and initiatives. The European Union (EU) has established targets for member states to enhance the utilization of renewable energy in transportation, including biofuels like biofuel. The Renewable Energy Directive (RED) and its subsequent revisions have played a pivotal role in shaping biofuel production and consumption in Europe.