"A fundamental transition in global fuel production is now happening. In the year 2007, there were only 20 oil producing nations supplying the needs of over 200 nations. By the year 2010, more than 200 nations will become biodiesel producing nations and suppliers," said Thurmond. "The world is entering a new era of participation by emerging market nations in global green energy production for transport fuels."
 

Growth in Non-Food Feedstocks
Biodiesel feedstock markets world-wide are in transition from increasingly expensive first generation feedstocks soy, rapeseed and palm oil to alternative, lower cost, non-food feedstocks.  As a result, a surge in demand for alternative feedstocks is driving new growth opportunities in the sector.


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"Biodiesel growth from non-food feedstocks is gaining traction around the world," said Thurmond. "For example, China recently set aside an area the size of England to produce jatropha and other non-food plants for biodiesel. India has up to 60 million hectares of non-arable land available to produce jatropha, and intends to replace 20% of diesel fuels with jatropha-based biodiesel. In Brazil and Africa, there are significant programs underway dedicated to producing non-food crops jatropha and castor for biodiesel."




"In the US and the EU, algae-based biodiesel ventures are growing in response to demands for clean fuels. Each of these endeavors clearly demonstrates increased public and private sector interest in non-food, second generation markets," said Thurmond.  


Sustainability Concerns Drive Industry Growth
An increasing number of second generation biodiesel projects are now emerging in anticipation of growing sustainability concerns by governments, and in response to market demands for improved process efficiencies and greater feedstock production yields.



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"Many governments are now revising their biofuels policies in a reactive or a proactive manner," Thurmond notes. "If governments continue to pro-actively support and promote research & development in second generation technologies including renewable diesel, BTL biomass to liquids projects, algae, and cellulosic diesel; and if governments continue to actively support the development of sustainable, alternative, lower-cost feedstocks such as algae, jatropha, castor, used vegetable oil, tallow, and other sustainable feedstocks, the prospects for achieving biodiesel targets may be realized faster than anticipated. The Biodiesel 2020 study finds that each of these variables will be essential to achieving biofuels for transport targets" said Thurmond. 



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Second Generation Opportunities
As the Europe and US markets transition to larger plants, alternative feedstocks and 2nd generation technologies, the Biodiesel 2020 study predicts a consolidation among smaller, first generation producers from 2008-2010, accompanied by a series of mergers and acquisitions in the field. 

"From 2008 through 2020, a series of transitions in the biodiesel industry will create winners and losers," said Thurmond. "Biodiesel producers that are best able to evolve and adapt to transitions in technology, markets, feedstocks and government policies are most likely to succeed over the long term."

Opportunities and Outlook

The initial results from the study Biodiesel 2020: A Global Market Survey find that new developers, farmers, feedstock providers, producers, and investors who can meet growing demands for supply are expected to benefit from this emerging market.

In addition, this study finds key advantages in the future will be available to producers and investors to supply future needs with new and improved technologies; alternative feed stocks with higher yields such as jatropha and algae biodiesel; production scalability and flexibility options; supply chain, distribution and co-location strategies; innovative risk management strategies; and industry-friendly government targets and tax incentives committed to promoting the awareness and growth of the industry.

With an eye on the future, Biodiesel 2020: A Global Market Survey provides forecasts and scenarios to the year 2020 for the U.S. and European markets as well as the "big emerging markets" of China, Brazil and India. For Brazil, China and India, the study includes long-term forecasts and year 2020 scenarios, each measuring growth in the diesel and biodiesel markets, as well as focusing on the potential for biodiesel growth.
 

Media Coverage of Biodiesel 2020: A Global Market Survey

The widely acclaimed Biodiesel 2020 study has been featured in the Financial Times, Wall Street Journal, Business 2.0, Biodiesel magazine, Biofuels International, Renewable Energy Access, The Futurist, Fox News Energy Week, Reuters TV and on Finland's TV network 'N" news.
 

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