According to Technavio, a prominent market research and advisory firm, the global biodiesel market is poised for substantial growth, with an estimated increase of USD 16.71 billion from 2024 to 2028. The market is expected to exhibit a Compound Annual Growth Rate (CAGR) of approximately 7.38% during this forecast period.
Geographically, the market analysis conducted by Technavio covers major regions including North America, South America, Europe, Asia Pacific (APAC), and the Middle East and Africa (MEA). Among these, South America emerges with the highest share, indicating a notable presence and potential growth in the region.
What is Biodiesel?
It is an alternative fuel used in automotive engines. The process of manufacturing biodiesel involves the chemical reaction of raw materials, such as vegetable oil or animal fat, and alcohol, such as methanol or ethanol. The chemical reaction is known as transesterification. Biodiesel meets both the biomass-based diesel and overall advanced biofuel requirements.
Biodiesel in India
The Ministry of Petroleum and Natural Gas announced a Biodiesel Purchase Policy which became effective 1st January 2006. On 10.08.2015, the Government allowed direct sale of Biodiesel (B100) for blending with diesel to Bulk Consumers such as Railways, State Road Transport Corporations. On 29.06.2017 Government allowed sale of biodiesel to all consumers for blending with diesel.
The Biodiesel procurement by OMCs increased from 1.1 crore litres during 2015-16 to 10.56 crore litres during 2019-20. Presently, bio-diesel is being produced in the country primarily from imported palm stearin oil.
As per the National Policy on Biofuels – 2018. biofuels were categorised as “Basic Biofuels” viz. First Generation (1G) bioethanol & biodiesel and “Advanced Biofuels” – Second Generation (2G) ethanol, Municipal Solid Waste (MSW) to drop-in fuels, Third Generation (3G) biofuels, bio-CNG etc. to enable the extension of appropriate financial and fiscal incentives under each category. The Policy encourages the setting up of supply chain mechanisms for biodiesel production from non-edible oilseeds, used Cooking Oil, short gestation crops.
As the global focus on renewable energy intensifies, the biodiesel market’s growth trajectory presents significant opportunities for stakeholders across the value chain. With supportive policies and increasing awareness of environmental sustainability, biodiesel is poised to play a crucial role in addressing energy security and climate change concerns worldwide.
