58% Growth Expected in Biofuel Use

Global consumption of biofuels by cars and trucks will grow to 51.1 billion gallons per year in 2022 from 32.4 bg/y in 2013, according to Navigant Research.

The firm predicts growth will boost the retail market for biofuels to $4.5 trillion from $2.6 trillion over the same period. Such fuels will capture about 8% of the worldwide liquid fuels market, up two points from their current share.

Ethanol has accounted for 78% of biofuel consumption in recent years. But Navigant expects that proportion to decline to 69% by 2022 as demand grows for biodiesel and so-called drop-in fuels those made from biomass that can be easily introduced to the existing refining and distribution infrastructure.

Navigant's new report, Biofuels for Transportation Markets, expects biodiesel fuel consumption to jump 77% to 12.2 bg/y in 2022, accounting for about one-quarter of the biofuel market by then.