Aims to reduce emission, blending mandates, increasing focus toward second-generation fuel, and national policies are the factors driving the biofuel from sugar crops market
September, 2018: A major share of ethanol produced in the world is derived from starch and sugar-based feedstock. In the United States, corn serves as the leading feedstock for most domestic ethanol production. Blending mandate has been one of the most common support measures, and is often combined with tax incentives. Including several non-OECD countries, more than 50 countries have included blending targets or mandates, and several have announced biofuel quotas for future years.
Currently, the bulk of the mandates continue to come from the EU-27, where there is the Renewable Energy Directive (RED), but it has scaled back to the 5-7.5%, and has seen proposals for first-gen fuel mandates fall below 4%, in an effort to shift more aggressively toward advanced biofuels. Besides the EU, the major blending mandates are driven by the United States, Brazil, and China.
The demand for alternative fuel in the aviation sector is being driven by the international agreement, the CORSIA (Carbon Offset and Reduction Scheme for International Aviation) that will be initiated in 2021, which aims to cut CO2 emission in aviation sector by half, by 2050, relative to 2005 levels. The alternative solution, other than biofuels, are in development stages, and not ready for commercial use until 2050. More than 100,000 commercial flights have already successfully flown on biofuels blends, and several major airlines have committed to long-term biofuel purchase agreement.
The global ethanol production is being dominated by the United States, and Brazil, together accounting for around 84% of the global production. Other major energy consuming countries, such as India, face challenges, such as lack of awareness and technological expertise. Meanwhile, China is turning its farm waste into biofuel under nationwide ethanol plan, which aims for at least 10% ethanol blending in all petrol vehicles.
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Biofuel from Sugar Crops Market Segmentation Based on Pathways, Application, and Regional Coverage,
Biofuel from Sugar Crops Market, by Pathways:
Biofuel from Sugar Crops Market, by Application:
Biofuel from Sugar Crops Market by Region
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