Increasing demand for alternatives to conventional fuels is expected to propel growth of the bio-butanol market. Bio-butanol can be utilized as alternative fuel in a traditional internal combustion engine. It is produced from corn grain and other biomass. Bio-butanol helps in significant reduction of greenhouse gas emission. It offers various advantages such as higher energy content, lower Reid vapor pressure, increased energy security, fewer emissions, and more transport options. Moreover, increasing production of transport biofuel is also expected to aid in growth of the market. For instance, according to International Energy Agency, transport biofuel production expanded 6% year-on-year in 2019.
Increasing adoption of biofuels is expected to offer lucrative growth opportunities for players in the bio-butanol market. For instance, in December 2019, a Danish passenger car became the first in the world to drive around 50 miles on a mixture of biofuel from seaweed. Moreover, depleting fossil fuels and ban of their use is also expected to aid in growth of the market. For instance, The Netherlands (by 2030), Norway (by 2035), and France & Great Britain (by 2040) are focused on applying bans on the sales of passenger cars with internal combustion engines.
Initiatives to boost adoption of sustainable energy is expected to boost growth of the global bio-butanol market. For instance, in July 2019, Lisbon’s public transportation company Carris collaborated with Prio, a leading advanced fuels and biofuels operator in Portugal, for “Powered by Biodiesel” project to boost sustainable mobility in the country’s capital through the use of 100% used cooking oils. Moreover, partnerships to convert fibers into bio-based feedstock is also expected to aid in growth of the market. For instance, in March 2020, Koninklijke DSM N.V partnered with UPM Biofuels, a producer of sustainable raw materials, to reduce the environmental footprint of Dyneema, a fiber, by converting Dyneema into bio-based feedstock.
COVID-19 relief for biofuels is expected to offer lucrative growth opportunities for players in the global bio-butanol market. For instance, in October 2020, The U.S. House of Representatives passed an updated version of the Heroes Act. The US$ 2.2 billion COVID-19 stimulus package includes direct support for certain processed commodities, including biofuels.
However, absence of major market players is expected to hinder growth of bio-butanol market.
Competitive Analysis
Major players operating in the bio-butanol market include, Butalco GmBH and Arbor Biofuels.
In-depth Report on Bio-butanol Market by Coherent Market Insights:
https://www.coherentmarketinsights.com/ongoing-insight/bio-butanol-market-696
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