An Overview Of The US biodiesel Market and Its Growth

Report on US Biodiesel Market Analysis and Forecasts to 2013 Report ( http://www.bharatbook.com/Market-Research-Reports/Report-on-US-Biodiesel-Market-Analysis-and-Forecasts-to-2013.html ) provides detailed analysis and forecasts of the global biodiesel market and the the US bioethanol market.

The rising awareness about the climate change issue and rising fossil fuel prices have led to growth of the Global Biodiesel Industry. The worldwide biodiesel production has increased from around 912 million liters in 2001 to more than 12,225 million liters in 2008, growing at a CAGR of approximately 44.8%. Further, it is expected to grow to 23,538 million liters by the end of 2013, at a CAGR of around 15%. In terms of global biodiesel production, Germany, the US, and France have been the undisputed leaders, followed by Italy and Brazil.
 
In the US, Biodiesel production has increased from around 24 million liters in 2001 to 2,766 million liters in 2008, growing at a CAGR of 97%. Further, it is expected to grow to around 5,536 million liters by 2013. Among the individual states of the US, Texas leads in production capacity of Biodiesel, followed by Iowa and Illinois. There are nearly 180 players in the US Biodiesel industry. Leading among them are companies like Green Earth Fuels, LLC, The REG Group, Biodiesel of Las Vegas, Inc., etc.
 
Production of Biodiesel in the US grew at a steep pace during the first half of this decade, chiefly buoyed by increasing consciousness about climate change and global warming, and firm government support. A corresponding increase of fossil fuel prices and a lookout for energy security further increased the demand for biodiesel in the US.
 
The increase in the Biodiesel Production in the US can be attributed to the various acts governing the industry at the federal level. This includes the Energy Policy Act of 1992 (EPAct 1992), the biodiesel tax credit enacted in 2004, the US Department of Agriculture’s (USDA) Commodity Corporation Credit (CCC) program, and most recently, the Energy Policy Act of 2005 (EPACT 2005). Apart from these, individual states also have their own policies to encourage biodiesel production. This has been the key driver of growth in the production level of biodiesel in US over the years.
 
However, recent economic trends and outlook does not present a very favourable scenario for growth of the US Biodiesel industry. The declaration of bankruptcy by VeraSun Energy Corporation and withdrawal of its IPO offer by Codexis are pointers to this effect.
 
One of the chief reasons that hit the US biodiesel industry is the recent financial crisis. The second reason to have slow biodiesel industry growth in the US is the reduction in petroleum prices globally. Thirdly, pure biodiesel is not as energy efficient as pure gasoline. All three reasons have come together to create a reducing demand for biodiesel in the US. However, this may not have much effect on demand for fuels having low biodiesel blends. However, barring the above mentioned reasons, the strong policy support would be the key growth driver for the future development of the US biodiesel industry.
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