Second Generation Bio fuels Market Analysis

Global Second Generation Bio-fuels Market Overview

Global Second Generation Bio-fuels Market Size was valued at USD 37.10 billion in 2022. The Second Generation Bio-fuels industry is projected to grow from USD 47.37 Billion in 2023 to USD 261.46 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 27.64% during the forecast period (2023 - 2030). Second-generation biofuels support policies and increasing demand for biofuels is driving the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Second Generation Bio-fuels Market Trends

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  SECOND-GENERATION BIOFUELS SUPPORT POLICIES

  
  

Previously, most of the ethanol produced in the U.S. was from corn, strongly favored by the previous support policies. With the adoption of the RFS in 2009, however, the blending of second-generation biofuels based on lignocellulosic feedstock is mandated from 2010 onwards. The total volume of biofuels mandated in the Renewable Fuels Standard will increase from 15 billion liters in 2006 to 136 billion liters in 2022. The RFS targeted an increase in consumption of lignocellulosic ethanol from virtually zero in 2009 to 60.6 billion liters per year in 2022. From this target, only 60 to 70% is achieved due to Covid and other climate change factors. According to the act, minimum GHG savings for advanced biofuels (i.e., non-grain based) is 50-60% compared to fossil fuel to make biofuel production more sustainable. These requirements favor the development of highly efficient biofuel technologies, including second-generation biofuels. The total effect on emission savings is estimated to be around 200 million tons of CO2 annually in 2022.

In 2018, The European Parliament supported limiting biofuels made from food crops to 2017 national consumption levels and never higher than 7% of all transport fuels. Parliament also passed to remove biodiesel made from palm oil, the highest emitting biofuel in the market today, from the list of biofuels that can count towards the renewables target in 2021. Parliament also approved an overall transport target of 12% containing a 10% blending mandate for so-called ‘advanced’ fuels, which includes renewable electricity, waste-based biofuels, and “recycled carbon fuels.”

In RED II, framed in 2016, the overall EU target for Renewable Energy Sources consumption by 2030 has been raised to 32%. The Commission’s original proposal did not include a transport sub-target, introduced by co-legislators in the final agreement: Member States must require fuel suppliers to supply a minimum of 14% of the energy consumed in road and rail transport by 2030 as renewable energy.

For 2030, under the 2015 Paris Agreement, Korea committed to reducing GHG emissions by 37% compared to the BAU scenario of 851 Mt CO2-eq, implying that emissions will reach 536 Mt CO2-eq in 2030. This emission is equivalent to 24.4% below 2017 emissions. Korea is committed to increasing the share of renewables in power generation by up to 20% by 2030. To achieve this, President Moon Jae-in declared that the country would pursue the aim of achieving carbon neutrality by 2050. With the adoption by UN member states of the SDGs in September 2015, the linkages between energy and development will be high on international agendas until 2030. The specific SDG 7, which deals with Sustainable Energy, calls for universal access to modern energy services, a substantial increase in the share of renewable energy in the global energy mix, and gains in energy efficiency. The above factors determine the government to use second-generation biofuels drive Second Generation Bio-fuels  market revenue.

Second Generation Bio-fuels  Market Segment Insights

Second Generation Bio-fuels Base-Oil Feedstock Insights

The global Second Generation Bio-fuels market segmentation, based on feedstock, type, application and region. Based on base-oil type, the global market has been divided into Simple Lignocellulose, Complex Lignocellulose, Syngas and others. The Complex Lignocellulose segment dominated the global market, accounting for 51.89% of the share in 2022. It was followed by the others segment estimated to reach USD 53.21 billion by 2030 growing at a CAGR of 26.34%. The major reason for the increasing demand for solution is its flexibility and less cost while operating on wide networks. These overall setups are also cost-efficient and required a centralized location for set up and the rest is provided through services making this solution easily integrated with new technologies.

June 2021: Poet LLC acquired the ethanol assets of Flint Hills Resources, It includes six ethanol plants, two terminals and Flint Hill’s NexPro animal feed ingredients business. The acquisition will allow POET to provide even more high-quality, plant-based biofuels and bioproducts to the globe, allowing us to make an even greater influence on combating climate change and cleaning up air.

Second Generation Bio-fuels Type Insights

The global Second-Generation Bio-fuels market segmentation, Based on type, the global Second Generation Bio-fuels market has been segmented into Cellulosic Ethanol, Bio-Diesel, Bio DME, and Others. Cellulosic ethanol accounted for the largest market share of 60.40% in 2022, with a market value of USD 22.41 billion; it is expected to register a CAGR of 25.17 % during the forecast period. The Bio DME segment was the second-largest market in 2022, valued at USD 3.12 Billion; it is projected to exhibit a CAGR of 37.88%.

The major reason for the growth of cellulosic ethanol is its wider acceptance in many developed countries, increasing demand for low-carbon fuels with clean fuel norms and the highest agricultural waste available easily across regions. While Bio DME has a smaller market base due to its economic and technical concerns, even due to alternative fuel development demand it is also another type of second-generation biofuel used as a blend with other biodiesel.

Feb 2023: Jio-BP, a fuels and mobility joint venture between Reliance Industries Ltd (RIL) and BP, on Wednesday announced the rollout of E20 blended petrol. The E20 fuel is a 20% blend of ethanol and 80% of fossil-based fuel.

Figure 2: Second Generation Bio-fuels  Market, by Type, 2022 & 2030 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Second Generation Bio-fuels  Application Insights

The Second Generation Bio-fuels  Market segmentation, Based on the application, the global Second Generation Bio-fuels market has been segmented into Transportation, Power Generation, and Others. The transportation segment accounted for the largest market share of 78.25% in 2022, with a market value of USD 29.03 Billion; it is expected to register a CAGR of 26.96 % during the forecast period. While power generation segment which are looking for green fuels in renewable energy sector as well as for motors increase the demand of second-generation biofuels leading it to grow at the highest CAGR of 30.25% through the forecast period.

Figure 2: Second Generation Bio-fuels  Market, by Application, 2022 & 2030 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Second Generation Bio-fuels Regional Insights

The global Second Generation Bio-fuels market has been studied for the following regions—North America, Europe, Asia-Pacific, and Rest of The World. The North America segment accounted for the largest market share of 53.91% in 2022, with a market value of USD 20 Billion; it is expected to register a CAGR of 27.68 % during the forecast period. The Europe segment was the second-largest market in 2022, valued at USD 8.85 Billion; it is projected to exhibit a CAGR of 27.8%.

A sizable, Second Generation Bio-fuels industry in the region is likely to make the North American region the largest expanding market for Second Generation Bio-fuels globally. The market for Second Generation Bio-fuels is also anticipated to grow throughout the forecast period because of supporting government policies in the North American market. Advanced biofuels play an essential role in the low-carbon pathway for the transport and energy sector. As per IRENA, with little change in the distribution infrastructure transport fleet for fuel, advanced biofuels can be rapidly deployed, resulting in efficient reductions in greenhouse gas (GHG) emissions. Advanced biofuels can be a practical alternative to fossil fuels for shipping, aviation, and heavy freight trucks. Various renewable energy sources are being deployed to reach the goals of the Paris Agreement from time to time; advanced biofuels address critical issues within the transport sector and will be needed for decades to meet long-term climate targets.

Further, the major countries studied are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: Second Generation Bio-fuels  Market SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Second Generation Bio-fuels  market accounts for the second-largest market share due to the growth in the power generation industry in the region. Further, the Germany Second Generation Bio-fuels  market held the largest market share, and the was the fastest growing market in the European region.

Second Generation Bio-fuels  Key Market Players & Competitive Insights

The global Second-Generation Biofuels market is characterized by the presence of many regional and local vendors. The market is highly competitive, with all the players competing to gain maximum market share. The increasing global Second-Generation Biofuels demand in boosting the sales of Global Second-Generation Biofuels. The vendors compete based on cost, service quality, and the availability of the service according to the geographies. The vendors must provide cost-effective and high-quality global Second-Generation Bio-fuels services to compete in the market. The competitive scenario is fragmented between the tier-1, tier-2, and tier-3 companies, while tier-1 and tier-2 companies hold over 60% of the global market share.

The market players' growth depends on the market and economic conditions, government regulations, and industrial development. Thus, the players should focus on expanding the production capacity to meet the demand and enhance their services. Algenol Biofuels, Fiberight, Granbio, Poet LLC, Clariant Ag, Ineos Group, Ltd, And Reliance Industries Limited are the major companies in the market at present that are competing in terms of quality, price, and availability. These players are primarily focusing on the development of Second-Generation Biofuels. Although the international players dominate the market, regional and local players with small market shares also have a moderate presence. The international players with a global presence, with established manufacturing units or sales offices, have strengthened their presence across major regions such as North America, Europe, Asia-Pacific, and Rest of the World.

Algenol utilizes its 10+ years of experience growing, harvesting, and processing algae to develop natural products and customized solutions to meet the customer’s needs. Algenol has an extensive and diverse collection of algae strains that provides an unparalleled opportunity to unlock algae’s potential to create novel, sustainable, high-value products.

Also, Clariant AG (Clariant) creates, produces, sells, and distributes various specialized chemicals utilized in clients' production and treatment processes. The company's product offerings include additives, automotive fluids, agricultural waste, petrochemical catalysts, performance materials, surfactants, mining chemicals, intermediates, and emulsions. The industrial, personal care, paints & coatings, crop protection, automotive, plastic, transportation, refining, and pharmaceutical industries all use the company's goods. Five business units comprise the group's ongoing operations: Industrial & Consumer Specialties, Catalysts, Oil & Mining Services, Functional Minerals, and Additives. The three business areas of care chemicals, catalysis, and natural resources comprise these business units and the business line biofuels & derivatives. It functions through an international network of production facilities, R&D centers, and technical hubs. The corporation sells its goods in the Americas, Europe, Asia, and Middle East & Africa.

Key Companies in the Second Generation Bio-fuels  market include

• ALGENOL BIOFUELS


• Fiberight


• GranBio


• Poet LLC


• Clariant AG


• INEOS Group, Ltd


• Reliance Industries Limited

Second Generation Bio-fuels Market Developments

Feb 2023 Jio-BP, a fuels and mobility joint venture between Reliance Industries Ltd (RIL) and BP, on Wednesday announced the rollout of E20 blended petrol. The E20 fuel is a 20% blend of ethanol and 80% of fossil-based fuel.

December 2021 RSC Bio Solution and Standard Sekiyu Osaka Hatsubaisho Co., ltd enter latest distribution partnership to meet growing demand for environmentally acceptable lubricants (EALs) in Japan serving industrial and marine applications announced.

Oct 2020 INEOS and UPM Biofuels have today announced a long-term agreement to supply a renewable raw material for new and innovative bio-attributed polymers to be produced at INEOS Köln, Germany.

Second Generation Bio-fuels Market Segmentation

Second Generation Bio-fuels Base-Oil Feedstock Outlook

• Simple Lignocellulose


• Complex Lignocellulose


• Syngas


• Others

Second Generation Bio-fuels Type Outlook

• Celluosic Ethanol


• Bio-Diesel


• Bio DME


• Others

Second Generation Bio-fuels  Application Outlook

• Transportation


• Power Generation


• Others

Second Generation Bio-fuels Regional Outlook

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  North America

  
  
  
  
  • US
  
  
  • Canada
  
  
  
  


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  Europe

  
  
  
  
  • Germany
  
  
  • UK
  
  
  • Russia
  
  
  • Rest of Europe
  
  
  
  


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  Asia-Pacific

  
  
  
  
  • China
  
  
  • Japan
  
  
  • South Korea
  
  
  • Rest of Asia-Pacific
  
  
  
  


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  Rest of The World

  
  
  
  
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    Latin America

    
    
  
  
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    Middle East & Africa