Biorefinery Market Trends

Growth Drivers

• Growing Demand for Cleaner Fuels– Biofuels are fuels made from organic materials such as plants, agricultural products, algae, and animal waste. They are a suitable replacement for petroleum-derived gasoline or any conventional fuel. According to the WEO's Stated Policies Scenario, which is based on the most recent policy sets worldwide, these additional initiatives are expected to accelerate global clean energy investment to more than USD 2 trillion per year by 2030, a more than 50% increase from today.
• Technological Advancement of Biorefining Process- New innovation in the biorefining process is likely to bring opportunities for the market. In February 2022, Oklahoma State University issues a patent for developing a new process of co-fermentation that transforms sugar into alcohol, ketones, and organic acids that increases the production of biofuels and minimum emission of carbon dioxide.
• Growing Initiatives to Reduce the Carbon Emission– 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.
• Increasing Consumption of Electricity – Biorefineries are facilities that process biomass to create value-added products such as biofuels, biochemicals, and bioenergy/biopower. According to the International Energy Agency, after a 6% spike in 2021, global electricity demand has increased by 2.4% in 2022, matching its average growth rate over the five years preceding the Covid-19 pandemic.
• Rising Awareness for Converting Waste to Energy– Biorefinery technology leverages all feedstock and follows waste to energy process for producing a diverse range of products with significant benefits. In 2023, Vietnam hopes to collect and handle around 96% of urban household waste in accordance with guidelines. As part of the authorized national policy on green growth for 2021-2030 with a vision to 2050, the Vietnamese government has set a goal of increasing the rate of solid trash collected and securely treated to nearly 100% by 2050.

Challenges

• 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 market growth.
• Capital and Building Operation Cost is High
• Competitiveness Faced by Traditional Fossil Fuels