2012-09-24 20:36:34 - Biodiesel industry set to suffer from EU regulation changes
The global biodiesel market experienced robust growth over the last five years and is expected to continue this momentum, reaching approximately US $64 billion by 2017, at a compound annual growth rate (CAGR) of 19% over the next five years.Despite the controversies surrounding biofuel such as sustainability, food versus fuel, and the like, biofuel supply and demand is projected to grow through to 2017.In the US, the biodiesel industry reached a key milestone by producing more than 1 billion gallons of fuel in 2011, according to year-end numbers released by the EPA in January 2012.The total volume of nearly 1.1 billion gallons is by far a record for the industry and easily exceeded the 800 million gallon target required under
the EPA´s Renewable Fuel Standard (RFS).However, all is not as healthy in Europe, where the multibillion-euro biodiesel industry is set to suffer from major regulation changes outlined by the EU climate commissioner.The changes proposed by Connie Hedegaard will limit food-based biofuels to 5%, just above the current output of 4.5%.Green campaigners, who see biodiesel as doing more harm than good, hailed the move as a major victory for the environment. But the biodiesel industry condemned what it sees as a catastrophic U-turn that will cost thousands of jobs.The EU has a target of 10% for renewable transport fuels by 2020. But biofuels have become increasingly controversial because those derived from oil crops such as rape and palm can result in greater carbon emissions than the diesel they replace, as well as higher food prices and deforestation.APAC is expected to enjoy the highest growth rate in biodiesel production through to 2017, due to population density and burgeoning automotive markets.For more information on the biodiesel market, see the latest research: Biodiesel Market ReportFollow us on Twitter @CandMResearch
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