The biodiesel market is projected to reach USD 41.18 Billion by 2021, at a CAGR of 3.8% from 2016 to 2021. Biodiesel is a fatty methyl/ethyl ester used as a substitute for fossil-based fuels. It is a largely preferred fuel, as it is environment-friendly and derived from vegetable oils, animal fats, and greases. In addition to this, biodiesel reduces greenhouse gas emissions and ensures complete burning. There has been a growing demand of biodiesel from end-use industries, such as automotive, electricity & power generation, marine, railway, agriculture, and mining.
Expansion was a key strategy adopted by major players to achieve growth in the global biodiesel market between 2013 and 2016. Some of the major players in the biodiesel market include Archer Daniels Midland Company (U.S.), Wilmar International Limited (Malaysia), Bunge Limited (U.S.), Neste Corporation (Finland), Renewable Energy Group Inc. (U.S.), Louis Dreyfus Company (Netherlands), Cargill Inc. (U.S.), BIOX Corporation (Canada), Munzer Bioindustrie (Austria), and TerraVia Holdings Inc. (U.S.). Besides expansions, companies also adopted acquisitions, agreements & joint ventures, and new product developments as strategies to expand their product portfolio, strengthen their distribution network, and easily extend their reach to their customers.
In November 2016, Renewable Energy Group started the expansion of its Ralston, IA bio-refinery. This expansion will increase the company’s annual production capacity from 12 million gallons to 30 million gallons and will help company to serve the increasing demand of biodiesel in the U.S. Renewable Energy Group acquired Sanimax Energy's biodiesel refinery plant located in Wisconsin (U.S.) in 2016. The plant is now called REG Madison, LLC and has a production capacity of 20 million gallons. With this acquisition, the company expanded its presence in the U.S. Between 2014–2016, REG used acquisition as a major strategy to increase its regional reach.
Cargill Inc. used expansion as its major strategy to increase its market share in the biodiesel market. In August 2016, Cargill Inc. expanded its canola research facility in Aberdeen (Canada). The expansion included new pathology lab, new state-of-the-art Quality Assurance lab, ventilated seed prep room, and high efficiency LED lighting throughout the facility, with UV repelling windows. This expansion covered an area of 14,000 sq. ft. and will allow the company to conduct research and innovations in the specialty canola business. In 2015, Cargill Inc. invested USD 100 million to double the capacity of its soybean oil crush operation in Borg El Arab and constructed an additional 42,000 MT of storage capacity within Cargill’s existing premises at the port of Dekheila in Alexandria. This helped the company meet the increasing demand for soybean oil and vegetable oil in Egypt.
Biodiesel Market by Feedstock Type (Vegetable Oils (Soybean, Rapeseed, Palm), Animal Fats (Lard/White Grease, Poultry, Tallow), Brown Grease/ Trap Grease), Application (Fuel, Power Generation), and Region - Global Forecast to 2021
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