Next Generation Feedstock Driving US Biofuel Industry

Delhi, India (PressExposure) February 26, 2009 -- The US is the biggest players in the global biofuel industry. Ethanol production currently dominates the US biofuel industry but it established the strong base at the end of 2006, said, “US Biofuel Market Analysis”, a new research report from RNCOS.

The US biofuel industry primarily depends on corn and soybean oil for the production of biofuel, but the usage structure of both the feedstock is indicating to the feedstock shortage in future. Thus, the rising concerns for food and fuel shortage will boost up the cellulosic ethanol production in the US.

According to a Senior Research Analyst at RNCOS, most of the ethanol in the US is produced from corn. But this crop is a poor feedstock due to low yield and high fertilizer requirements which are linked to water pollution. High amount of greenhouse gases emission and expanded “dead zone” in the Gulf of Mexico are other environmental concerns arising from the cultivation of corn.

Considering the shortcomings of using corn for energy production, RNCOS Analyst believes that the “next generation“ biofuels will be produced from cellulose in woody grass, trees and agriculture waste, but they will also pose environmental concerns.

Giving the current market scenario, the US government is increasingly allocating funds and enacting legislation to boost up the feedstock diversification and production. In 2008, the government passed a bill to provide US$ One Billion fund for new feedstock production and renewable energy programs. We believe that the cellulosic ethanol will grow at a CAGR of nearly 87% by the end of crop year 2017.

“US Biofuel Market Analysis” provides detailed information on the prevailing market trends in the US biodiesel industry. The report thoroughly evaluates the overall biodiesel industry, with segment-wise discussion on biodiesel and ethanol. It also studies the major driving forces of the US biofuel industry and highlights high growth areas to enable clients understand the leading opportunities existing in the industry.

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About RNCOS:

RNCOS, incorporated in the year 2002, is an industry research firm. We are a team of industry experts who analyze data collected from credible sources. We provide industry insights and analysis that helps corporations to take timely and accurate business decision in today's globally competitive environment.

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Press Release Submitted On: February 26, 2009 at 2:40 am
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