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02 MARKET AND INDUSTRY TRENDS
a rise of 1.7 million tonnes over 2014. 82 In addition, in 2015
the Sustainable Biomass Partnership (SBP), an industry-led
initiative, developed and published a framework of standards
and independent certification procedures that enable companies
using biomass at a large scale to demonstrate compliance with
legal, regulatory and sustainability requirements that relate to
woody biomass. 83
The production of torrefied wood/pellets, which increases the
energy density of biomass-based fuels and results in a product
compatible with systems designed for coal, also saw some
expansion during 2015. For example, In the United States, Vega
Biofuels entered into a joint-venture agreement to construct a biocoal
manufacturing plant in the state of Georgia, which will be
operated by Agri-Tech Producers and Vencor International. 84
Liquid Biofuels Industry
In contrast to solid biomass, production of liquid biofuels is focused
around a number of large industrial players with dominant market
shares. These include ethanol producers Archer Daniels Midland
(ADM), POET and Valero in the United States, and Copersucar,
Oderbrecht (ETH Bioenergia) and Raizen in Brazil. 85
In 2015, there was limited development of new conventional
biofuels production capacity in the principal producer markets –
the United States, Brazil and Europe – largely because existing
plants were not operating at full capacity. Total global biofuels
capacity is some 209 billion litres a year. 86 With current production
of 133 billion litres, there is some 35% spare capacity. Future
demand patterns remained unclear due to regulatory and market
uncertainty, so there is little motivation for large-scale new
capacity investment.
However, new developments occurred in a number of new and
emerging markets in Asia and Africa. In Nigeria, for example,
an international funding partnership was announced with the
country’s cassava growers association to produce ethanol in 10
distilleries in different states around the country. 87
Ethanol is traded internationally, and trade patterns showed some
significant variations in 2015. US net exports of ethanol increased
by 28% compared with 2014, to 2.5 billion litres; shipments were
to Brazil, the Philippines, India and the Republic of Korea. 88 The
Chinese market for ethanol imports (particularly from the United
States) has grown rapidly, influencing global trade patterns. 89
Biodiesel production is more geographically diverse than ethanol,
with production spread among a number of countries. The top
producers are the United States, Brazil, Germany, Argentina,
France, the Netherlands, Indonesia and Thailand. 90 The biodiesel
industry has been affected to a significant degree by policy and
regulatory changes and by shifting patterns in international trade.
In the United States, for example, industry developments have
been subject to uncertainty about the biodiesel tax credit and an
expectation that Argentina may become a major exporter to the
country. 91 In Europe, biodiesel sales are constrained by the 7%
limit introduced in 2015 on the contribution of starch-rich, sugar
and oil crops to the EU’s 2020 biofuel target. 92
In 2015, there was active progress in demonstrating the reliable
production of a range of advanced biofuels. These fuels offer
alternatives to conventional biofuels (produced with sugar,
starch and oils) and thereby offer the prospect of lower life-cycle
greenhouse gas emissions and reduced competition with food
production. 93 A number of routes are being investigated including
the production of HVO, the use of biological processes to produce
fuels from cellulosic materials (such as crop residues), and
thermochemical processes including gasification and pyrolysis. 94
During 2015, activity related to advanced biofuels was concentrated
largely in the United States, Brazil and Europe. Key players in the
ethanol, biodiesel and other bio-based industries (as well as fossil
fuel suppliers) are playing major roles in this sector, working with
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