Study Goal and Objectives
BCC Research has recently completed a study on the demand for biorefinery products. The United States, the European Commission’s Lead Market Initiative and numerous Asian economies aim to facilitate an early adoption of biorefinery products innovation in various markets by 2022. By removing barriers and introducing new mechanisms, including mandates to facilitate market entry, it will be possible to build early markets of sufficient scale, which will help justify costly investments, bring down unit production costs, generate higher returns on investment and reduce risks for investors and entrepreneurs.
The objectives of this BCC Research report are to:
- Understand the various biorefinery products.
- Understand the importance of biorefinery products and where they fit in the economy.
- Appreciate biomass resource availability.
- Understanding the biomass transformation process for various bio-products.
- Understand the basic concepts and principles of operation of equipment used for biorefinery conversion.
- Understand the value chain of basic products and the structure of the biorefinery industry and its interaction with the fossil-based industry.
- Understand the typical operations and requirements for the establishment of biorefinery platforms.
- Evaluate the results of geographical diversification in biorefinery products and feedstocks.
- Quantify the market and end-use of biorefinery products.
Provide a critical evaluation of the current status of commercial biorefinery products markets and how recent environmental legislation and breakthroughs in technology will make the use of bio-based products competitive with established fossil-based platforms.
Reasons for doing the study
Conventional resources, mainly fossil fuels, are becoming limited because of the rapid increase in energy demand. This imbalance in energy demand and supply has placed immense pressure not only on consumer prices but also on the environment, prompting mankind to look for sustainable energy resources. Biomass is one such environmentally friendly renewable resource from which various useful chemicals and fuels can be produced. A system similar to a petroleum refinery is required to produce fuels and useful chemicals from biomass and is known as a biorefinery.
Unlike other studies dealing with this subject, this research report quantifies the two categories of energetic and non-energetic bioproducts into seven major product segments: bio-derived chemicals, biofuels, pharmaceuticals (biodrugs and herbal/botanicals), biocomposite materials, biopolymers/bioplastics, biogas and biopower. More importantly, the report examines the different drivers shaping each of these segments and discusses these differences so as to eliminate any confusion in the debate on bioproducts and help companies choose the correct strategic investment path. This biorefinery products report is therefore designed to provide the information required by anyone concerned with the development of agriculture, chemicals, pharmaceuticals, energy and fuels.
Edward Gobina is an innovator, inventor and pioneer in membrane reactor-separator technology. He is a full U.K. Professor of Chemical and Processing Engineering with 32 years of research and teaching experience in environmental engineering, petrochemical reaction engineering and catalysis and membrane technology. His scientific achievements number more than 150 articles, 20 granted patents, 30 patent applications, and over 100 invited/guest speaker presentations and contributed presentations as well as participation in prestigious refereed scientific journals, newsletters, proceedings and reviews. He has been a project analyst for BCC Research since 1998 and has authored over 22 BCC Research reports, providing critical links in the entire chemical and energy infrastructure chain from hydrogen to advanced oil and gas exploitation, sensors/monitoring, and LNG infrastructure. Professor Gobina is a member of the European Membrane Society (EMS), the North American Membrane Society (NAMS) and the New York Academy of Sciences (NYAS). He is the current director of the Centre for Process Integration and Membrane Technology (CPIMT) within the School of Engineering at the Robert Gordon University in the U.K.
Methodology and data sources
Both historic and current data were used in the demand analysis of this report. The results of the calculations presented are based on three components: a historic analysis of demand from 2010-2013, estimated data for 2013 and forecasted demand for 2013-2018. Secondary research information was used to derive market numbers for each segment of the report and further validated our analysis with C-level executive information of major companies operating in the bioproducts market. The report contains data obtained from government sources, trade associations and publications, business journals, scientific papers, company literature, investment reports and interviews with industry professionals.
Statistics on U.S. production, imports and exports are taken from the U.S. Census Bureau and the U.S. International Trade Commission. Europe production and trade data are primarily taken from Eurostat, and trade data for other nations is taken from the respective customs office for each country and the United Nations Comtrade database. Other sources include the International Council of Chemistry Associations (ICCA), the American Chemistry Council (ACC), the European Chemical Industry Association (CEFIC), and CropLife International as well as reports from intergovernmental agencies including the United Nations Environment Programme (UNEP), the United Nations Industrial Development Organization (UNIDO), the United Nations Food and Agriculture Organization (FAO) among others. Additional data sources are the United States Geological Survey (USGS), United States Department of Energy (USDOE) and the United States Department of Agriculture (USDA) as well as articles in industry journals and peer-reviewed academic journals. Proprietary data sources used for this report include the Chemical Economics Handbook and the Specialty Chemicals Update Report series, both published by SRI International, the American Chemistry Council’s Guide to the Business of Chemistry and data from the International Lead and Zinc Study Group. Sources for the health and environmental impact sections include peer-reviewed journal articles as well as reports and statistics from governmental and intergovernmental agencies, including the World Health Organization (WHO) and the World Bank.
Scope of the report
The report begins with an overview that defines and quantifies biorefinery products and assesses market trends and categories/segments. This section also indicates the importance of the bioproducts industry and where it fits in the economy.
The next section presents the demand for bioproducts by type and analyzes the market for chemicals, biofuels, pharmaceuticals, energy generation and biomaterials. These are quantified by type with regional breakdowns.
The following section quantifies the demand by application for transportation fuels, heat and power generation, and chemicals.
The technology section presents demand by type of technology used for the conversion of biomass to bioproducts, including the technology generation and platform. Technology development for biobased products and patent evaluation is also assessed.
The next section discusses product development in the chemical, pharmaceutical, materials, power and fuel sectors, which will enable utilization of the 170 billion tons of biomass that Earth’s biology produces every year.
The following section outlines the industry structure, identifies the various segments in the biorefinery industry and shows how each market segment will grow over the next five years to 2018. A number of influencing factors are considered, including macro factors that affect the global bioeconomy and industry-specific factors such as new product development and the public acceptance of biorefinery products.
The international section presents the baseline economic forecast and shows historical yearly foreign currency exchange rates.
The market shares of the major companies involved in the manufacture of biobased products are then presented and discussed.
The next section analyzes and discusses future regulation of the biorefinery industry. It discusses the major legislation, policies and regulations and their effects on biorefinery products.
The final section presents profiles of bioproducts and identifies the various companies involved in the manufacture of these products.