Guidehouse Insights Estimates Global Biofuel Supply Will Grow at a Compound Annual Growth Rate of 6% by 2031

Market barriers include headwinds from high costs, policy uncertainty and food & water hurdles

BOULDER, Colo., Jan. 31, 2023 /PRNewswire/ -- A new report from Guidehouse Insights examines the global market for biofuel, the single most popular form of renewable energy around the world.

Following a sharp drop in demand during the COVID-19 lockdowns in 2020, production of and demand for liquid biofuels for transportation are on the rise. The bioenergy market has benefited from strong government support, often through tax incentives and fuel blending mandates, and will likely continue to grow. According to a new report from Guidehouse Insights, global biofuel supply will rise at a compound annual growth rate (CAGR) of 5.6%, from 187.8 billion liters per year in 2022 to about 305.7 billion liters per year in 2031.

"One of bioenergy's biggest benefits is its wide range of applications. Biomass can be used for heating and cooking, for electricity generation, for combined heat and power, or to produce liquid or gaseous fuels for transport, industrial chemicals, materials, and other products," says Peter Marrin, senior research analyst with Guidehouse Insights. "As the world looks to decarbonize, bioenergy offers a key advantage as it is capable of decarbonizing especially hard-to-abate sectors such as aviation. Refining biofuels into renewable diesel and renewable natural gas allows the use of existing infrastructure and can lead to faster adoption."

Bioenergy can be especially valuable for developing as it offers the opportunity for energy self-sufficiency and a reprieve from the volatility of fossil fuel prices. However, further adoption of bioenergy use also faces several obstacles. Most bioenergy products cannot be used directly without performing expensive equipment retrofits or total replacements. In addition, while biomass feedstocks have evolved to include non-edible sources, food and water issues persist. Lastly, the market faces headwinds from high costs, policy uncertainty, a relatively lower energy output compared to other fuels, and competition with other technologies, according to the report.

The report, Market Data: Bioenergy Production and Utilization Markethttps://guidehouseinsights.com/reports/Market-Data-Healthy-Homes, discusses solid biomass, liquid biofuels, and biogas. Production capacity and revenue are projected for 2022-2031 for four biofuels (ethanol, biodiesel, renewable diesel, and biojet fuel). Production capacity is also estimated for biomass used for power generation in the 2022-2031 period. An executive summary of the report is available for free download on the Guidehouse Insights website.

About Guidehouse Insights

Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today's rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Insights can be found at www.guidehouseinsights.com.

About Guidehouse

Guidehouse is a leading global provider of consulting services to the public sector and commercial markets, with broad capabilities in management, technology, and risk consulting. By combining our public and private sector expertise, we help clients address their most complex challenges and navigate significant regulatory pressures focusing on transformational change, business resiliency, and technology-driven innovation. Across a range of advisory, consulting, outsourcing, and digital services, we create scalable, innovative solutions that help our clients outwit complexity and position them for future growth and success. The company has over 16,500 professionals in over 55 locations globally. Guidehouse is a Veritas Capital portfolio company, led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues driving national and global economies. For more information, please visit www.guidehouse.com.

* The information contained in this press release concerning the report, Market Data: Bioenergy Production and Utilization Market, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report's conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.

For more information, contact:

Cecile Fradkin for Guidehouse
+1.646.941.9139
[email protected]

SOURCE Guidehouse Insights