The Europe advanced biodiesel market was valued at US$ 11.41 Billion in 2022, according to Europe advanced biodiesel market report, By Raw Material (Trap Grease & Brown Grease, Yellow Grease, Algae, Agriculture & Forest Residue, Municipal Solid Wastes (MSWs), and Others), By End-use Industry (Transportation (Automotive, Aviation, and Marine), Power Generation, and Others), and By Country (U.K., Germany, France, Italy, Spain, Austria, Belgium, Poland, Russia, Czech Republic, and Rest of Europe) published by Coherent Market Insights.
Drivers:
Demand for advanced biodiesel is expected to increase over the forecast period, owing to rising investments by the European countries for second-generation biofuel technology and research activities. According to Report on the 7th Stakeholder Plenary Meeting of the European Biofuels Technology Platform published in 2016, there is an initiative taken for the implementation of the Energy Union objectives, which include ‘Action Plan’ on second and third generation biofuels. Furthermore, government agencies provide grants, loan guarantees, and other sources of funding to spur investment in second-generation biofuel development. For instance, in 2016, European Union provided fund for the Germany-based SUNLIQUID project, to produce second generation biofuel from agricultural wastes such as barley and wheat straws or corn stover. The total project cost was US$ 249,187,142.50 and European Union funding was US$ 25,529,195.00.
Statistics:
Europe advanced biodiesel market was valued at US$ 11.41 Bn in 2022 and is expected to reach US$ 32.09 Bn by the end of 2030.
Market Opportunities:
The advanced biodiesel market in Europe is expected to witness significant growth over the forecast period, owing to increasing government policies, which promote the development of advanced biodiesel and biofuel. For instance, the European Commission’s 2009 Renewable Energy Directive (Directive 2009/28/EC) was revised in 2015 due to a few concerns that include the impact of indirect land use on GHG emissions savings. These revisions include a cap on the biofuels contribution from crops for food or feed to national renewable energy targets in 2020 and a voluntary sub-target for advanced biofuels. Italy is the first EU member state to mandate an advanced biofuels target, which requires all fuel suppliers to include 0.6% advanced biofuel from 2018 rising to 1% by 2022.
To know the latest trends and insights prevalent in this market, click the link below:
https://www.coherentmarketinsights.com/market-insight/europe-advanced-biodiesel-market-3370
Market Restraints:
Production costs of biofuel are uncertain and vary with the feedstock available. For first-generation biofuel, feedstock costs around 55-70% of the total production cost. Feedstock costs and energy costs are the key factors that contribute to the high production cost of advanced biofuel. Production capacities, as well as facility locations, are closely linked with feedstock availability. Hence land availability and location play an important role in the case of second-generation biofuel adding to the cost of the product. Reduction in the cost of biomass of feedstock, conversion processes, and transport logistics are required to overcome the barrier of high production cost of advanced biofuel.
Market Trends:
Key players are focused on adopting inorganic growth strategies such as mergers and acquisitions, in order to gain market share in the Europe advanced biodiesel market. For instance, in July 2018, Argent Energy Group, a U.K.-based company acquired biodiesel facility of Simadan Group based in Amsterdam, Netherlands. The company acquired biodiesel production, tank storage, and cleaning facilities of the Simadan Group to expand its production line in the Europe market.
Company Names
- Argent Energy (UK) Limited
- BDI-BioEnergy International GmbH
- Biocom Energia, S.L.
- Renewable Energy Group, Inc.
- Olleco
- Abengoa S.A.
- Royal Dutch Shell plc.
- Archer Daniels Midland Company
- Bio-Oils Energy S.A.
- Münzer Bioindustrie GmbH.
Key Development:
ABENGOA S.A.
- In May 2015, Fulcrum BioEnergy, Inc. awarded an engineering, procurement, and construction contract to Abengoa for construction of its Sierra Biorefinery. This facility is expected to process about 175,000 tons of municipal solid waste feedstock annually to produce 11 million gallons per year of biofuels for transportation. The biorefinery is expected to begin operations by the end of 2020.
RENEWABLE ENERGY GROUP, INC.
In May 2018, Renewable Energy Group, Inc. completed the expansion of its biodiesel plant in Iowa, U.S. The company not only expanded its production capacity from 12 to 30 million gallons per year, but also upgraded its logistics and storage capabilities.
