Biorefinery Market Trends

Growth Drivers

• Technological advancement in biorefining processes: Next-generation biorefinery processes hold the potential to convert plant biomass to alternative fuels. Companies are leveraging technology to advance their process and gain better results. The DOE’s Center for Bioenergy Innovation Research startup, Terragia Biofuel received USD 6 million from Energy Impact Partners (EIP) and Engine Ventures in March 2024. The funding will allow Terragia to commercialize its biology-based technology to convert cellulosic biomass into ethanol, initiate partnerships with biofuel producers, and expand its workforce.
  
  The University of California, Riverside (UCR) in a February 2024 report, discussed its CELF technology for generating sustainable aviation fuel with an anticipatory break-even cost as low as USD 3.15/gallon of gasoline-equivalent. The present average price of jet fuel is USD 5.96/gallon in the U.S. The government provides renewable identification number credits or subsidies for biofuel production, to strengthen domestic biofuel manufacturing.
  
  The credits are rendered to second-generation biofuels and the D3 tier is priced typically at USD 1/per gallon. At this price per credit, one can expect a rate of return of more than 20%. The DOE’s Bioenergy Technology Office, in light of the UCR’s recent accomplishments, has awarded a USD 2 million grant for a small-scale CELF pilot plant at UCR. The institution aims at securing larger-scale investment to boost the technology’s footprint globally and harness sustainable fuels.
• Growing initiatives to reduce carbon emissions: Several studies have highlighted the relevance of biorefineries as a focal point in the carbon-neutral ecosystem of technologies associated with the circular economy paradigm. According to the International Trade Administration, Vietnam's Prime Minister made various promises at the UN Climate Change Conference in Glasgow in November 2021 (COP26), including an ambitious objective of decreasing emissions to Net Zero by 2050.

Challenge

• Uncertainty of feedstock availability: The production and availability of feedstock, such as forestry residue, and agricultural waste, are uncertain. As their production is dependent on crop yield, land use, and weather. This variability can affect the productivity and profitability of biorefineries and it is likely to hamper the biorefinery market growth.