Second-Generation Biofuels Market Share

North America Market Insights   

North America second-generation biofuels market is expected to account for the largest revenue share of 30% by 2035, backed by growing food waste and population in the region. In 2023, the federal government rolled out key standards to build a reliable, clean, and affordable electricity sector, including the Clean Electricity Regulations (CER). It offers USD 60 billion to advance electricity system decarbonization under the Clean Economy Plan and offers Clean Economy Investment Tax Credits (ITCs), Furthermore, Canada Infrastructure Bank (CIB) targeted programming and financing supports decarbonization of electricity production, such as the Smart Renewables Electrification Program. The federal government also introduced the Canada Green Buildings Strategy (2024), the Progress Report (2024), the Hydrogen Strategy (2020), the Small Modular Reactors (SMR) Action Plan (2020), and the Progress Update (2022).

The U.S. second-generation biofuels market is driven by the rising share of modern renewable was 10.9% in 2021 and the change in trend between 2000 and 2021 was 101%, whereas the biofuels and waste share was 5.3% of the final consumption in 2022. The overall power end-use growth was 3% higher in 2022 than in 2021. Furthermore, retail electricity sales to the residential end use sector were roughly 4% more in 2022 than the earlier year, while retail sector sales to the commercial end user was up 3% than in 2021. 

2023 Total Electric Industry- Customers

Source: EIA

APAC Market Insights

The APAC second-generation biofuels market is projected to garner a prominent revenue share during the anticipated timeline. Lignocellulose is the most abundant biomass on Earth, derived from various sources including crop residues such as rice straw, corn stover, wheat straw, sugar cane bagasse, municipal solid waste, and forestry residues. Statistical estimates indicate that global annual crop residue production reaches approximately 2,445.2 million tons. Notably, China contributes over 1,039.5 million tons of this total, accounting for more than 42.5% of the global figure. Additionally, Bacillus licheniformis, isolated from Himalayan soil, can produce thermostable cellulase, which demonstrates optimal activity at 60 °C. Several thermophilic cellulase-producing bacteria, such as Bacillus velezensis strain MRC 5958 and Geobacillus sp. KP43, have been characterized after being isolated from hot springs. Another strain, isolated from the Yunnan-Tibet hot springs, Clostridium SYSU GA15002T, can utilize cellobiose, cellulose, xylan, and untreated straw powder for bioethanol production.

Current projections estimate that China’s fuel ethanol capacity and consumption will reach 3.9 billion liters. Production is expected to remain slightly below 2022 levels due to less blending in certain areas, high feedstock prices, and limited imports restricted by high tariffs. Fuel ethanol production is forecasted to rise by 96 million liters, driven by a persistent profitability over the past few years. In 2023, biomass-based diesel (BBD) imports increased by 40% compared to 2022, with over 90% of these imports coming from palm oil biodiesel sourced from Indonesia and Malaysia. Additionally, China exports surged due to demand from the EU, as the country overtook Argentina to become the primary exporter of fatty acid methyl ester (FAME) to the EU in the fourth quarter of 2022.