According to the report, one prominent driver in the market is the advantage of using biodiesel over diesel, noting that the market is in need of a clean source of energy, and biodiesel is seen as an ideal alternative because it reduces greenhouse gas emissions and carbon footprints.
A Brazil Eco Energia analyst, commenting on the report, notes that many investors worldwide are investing in the market because biodiesel is a clean fuel, and it is gaining importance as a non-toxic and carbon-neutral fuel. It is the only alternative fuel to comply under the EPA’s Clean Air Act, and it successfully passes the criteria for lower emissions and a reduced carbon footprint in all other parts of the world.
Since many countries have taken initiatives to promote renewable fuels, the study predicts this move will have a positive influence on the demand for biodiesel in the transportation and commercial sectors.
The study does note that one of the major challenges in the biodiesel market is the threat to food security, as many farmers are beginning to cultivate feedstock for biodiesel over other agricultural commodities, which is resulting in an increase in food prices.
Biodiesel production in the US hit an all-time high last year, with production reaching 132 million gallons, a 75 percent increase over 2012.
In addition, earlier this year sales of advanced biofuel by Renewable Energy Group over its 17 year history hit the 1 billion gallon mark.
Photo Credit: Biodiesel via Shutterstock