Second generation biofuels, also known as advanced biofuels, are a type of renewable fuel made from non-food feedstock that has significant advantages over first generation biofuels. Second generation biofuels are designed to address the limits and issues associated with first generation biofuels, such as the usage of food crops and the possibility of indirect land-use change.
The main types of second generation biofuels are cellulosic ethanol, biodiesel, bio butanol, bio dimethyl ether (DME), and others. Cellulosic ethanol is a form of biofuel made from cellulose, a complex carbohydrate present in plant cell walls. They are prepared by biochemical process and thermochemical processes using simple lignocellulose, complex lignocellulose, syngas, algae, and other feedstocks for transportation, power generation, and other applications.
The global second generation biofuels market is segmented -
1) By Type: Cellulosic Ethanol, Biodiesel, Bio Butanol, Bio Dimethylether (DME), Other Types
2) By Process: Biochemical Process, Thermochemical Process
3) By Feedstock: Simple Lignocellulose, Complex Lignocellulose, Syngas, Algae, Other Feedstocks
4) By Application: Transportation, Power Generation, Other Applications
The global second generation biofuels market size is expected to grow from $6.44 billion in 2022 to $8.28 billion in 2023 at a compound annual growth rate (CAGR) of 28.5%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe. The size of second-generation biofuels market is expected to reach $21.35 billion in 2027 at a CAGR of 26.7%.
The high usage of biofuels due to environmental benefits is expected to propel the growth of the second-generation biofuels market going forward. Biofuel is any liquid fuel created from biological material such as trees, agricultural waste, crops, or grass. Replacing fossil fuels with biofuels has the potential to alleviate some of the negative environmental effects of fossil fuel extraction and usage, such as conventional and greenhouse gas (GHG) pollution emissions, finite resource depletion, and reliance on volatile foreign suppliers. Hence, biofuel usage is safe for the environment, thus driving the growth of the second-generation biofuels market. For instance, in April 2023, according to the U.S. Bioenergy Statistics report published by the United States Department of Agriculture, a US-based federal department overseeing laws on farming, forestry, rural development, and food, the production of biodiesel in the United States in the year 2020 was 1,814,698,074 gallons up from 1,724,506,560 gallons in the year 2019. Therefore, the high usage of biofuels due to environmental benefits is driving the growth of the second-generation biofuels market.
Major players in the second generation biofuels market are TotalEnergies SE, Reliance Industries Limited, INEOS Group Limited, The Andersons Inc., International Flavors & Fragrances Inc., Darling Ingredients Inc, DuPont Nutrition Biosciences ApS, Green Plains Inc, Flint Hills Resources LLC, Gevo Inc., Abengoa S.A., POET LLC, ICM Inc., Enerkem Inc., Advanced Enzyme Technologies Limited, Fulcrum BioEnergy Inc., LanzaTech Inc, Virent Energy Systems Inc., GranBio LLC, Algenol Biofuels Inc., Novamont S.p.A., Edeniq Inc., Mascoma Corporation, BlueFire Renewables Inc, Fiberight LLC., Clariant AG, Raizen S.A., Copersucar SA, Beta Renewables S.p.A., and EcoCeres Inc.
Strategic partnerships and collaborations are key trends gaining popularity in the second-generation biofuels market. Key players operating in the second-generation biofuels sector are focused on partnerships and collaborations to reinforce their position. For instance, in April 2023, Compania Espanola de Petroleos S.A.U., a Spain-based oil and gas company partnered with Bio-oils Huelva S.L.U., a Spain-based manufacturer of biodiesel. Through their partnership, the businesses have established a joint venture to advance the development of second-generation (2G) biofuels by building the biggest plant in southern Europe. Further, in August 2020, GranBio Technologies, a Brazil-based industrial biotechnology company, partnered with NextChem S.p.A., an Italy-based provider of sustainable technology solutions. With the partnership, the companies intended to take the lead globally in cellulosic ethanol production using the licensed GranBio 2G Ethanol technology. The partnership combines NextChem's engineering expertise, EPC capabilities, and global presence with GranBio's expertise in second-generation biomass and biofuels to provide integrated services, feasibility studies, integration projects, engineering, and the development of manufacturing facilities globally.
In June 2022, CropEnergies AG, a Germany-based ethanol producer acquired a stake in LXP Group GmbH for EUR 2 ($2.14) million. The investment in LXP helps CropEnergies to step further in implementing the company's strategic realignment. The strategic reinforcement by CropEnergies enables LXP to expand its technology faster. LXP Group GmbH is a Germany-based company operating in the second-generation biofuels market.
North America was the largest region in the second generation biofuels market in 2022. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the second generation biofuels market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the second generation biofuels market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The second generation biofuels market consists of sales of bio-synthetic natural gas, bioethanol, and bio methanol. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
The second generation biofuels market research report is one of a series of new reports from The Business Research Company that provides second generation biofuels market statistics, including second generation biofuels industry global market size, regional shares, competitors with a second generation biofuels market share, detailed second generation biofuels market segments, market trends and opportunities, and any further data you may need to thrive in the second generation biofuels industry. This second generation biofuels market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.