The research has unfolded the full potentials of the industry which has promising future growth prospects. RNCOS has investigated the global biofuel industry and has identified the decisive market trends shaping the industry’s current and future growth prospects.
Currently, Germany is leading the EU countries in terms of biofuel production. During 2005-2008, country’s ethanol production registered a growth of around 51% (CAGR). The industry is further poised for even rapid growth results in coming years, according to the report.
The research report said that along with Germany, some other European countries are also showing encouraging growth potential. Czech Republic, Denmark, France, Italy, Spain, etc have been continuously registering tremendous growth in production and are increasingly looking for capacity expansion amid rapidly surging demand from various energy-intensive sectors.
A senior research analyst at RNCOS said: “Till 2008, high oil prices were a major driving force for the biofuel industry. At present, the low oil prices will be compensated by the government policies of subsidies and tax benefits. The government support will make the biofuel prices competitive and will, therefore, play a major part in their increased production.
“Moreover, many countries are going for next generation biofuels made from wood & waste or non-food crops. This will help fighting the rising food prices and, in turn, making biofuels cheaper.”
