In fact, the biodiesel movement may serve more to simply balance the competitive
landscape than to tip the scales in favor of biofuels, and a newly proposed
study by Kline & Company is set to determine exactly what impact biodiesels
will have on the world stage.
According to preliminary research for Kline`s study, GLOBAL BUSINESS
OPPORTUNITIES IN BIODIESEL FUELS, 2006-2016, the supply of raw materials
required for biodiesel to replace petroleum-based diesel is simply not
available, even on a worldwide scale.
"Even if all of the corn and soy being grown in the U.S. right now were
used to make biodiesel in its 100% vegetable oil form, it would only
satisfy about 15% of the current demand for diesel fuel," says Geeta
Agashe, director of the Petroleum and Energy practice for Kline`s research
division. "And if we were to use all that corn and soy for fuel, that takes
away from our supply for food, as well as the many other non-food products
that rely on corn and soy as a base component."
Still, Agashe notes that while biodiesel might never become dominant,
it is certainly a trend that the major oil companies should be watching --
and one that potential biodiesel producers could use to their advantage.
"Biodiesel may not be the ultimate solution to the world`s fuel
problem, but it is an important part of the solution set," Agashe says. "It
produces lower emissions when burned and it expands the competitive
landscape, giving the consumer a viable alternative to petroleum-based
fuel. Having a choice is always better, not only for the consumer, but for
the economy as well."
Kline`s research indicates that, even as a niche play, biodiesel is
still a tremendous opportunity for both raw material suppliers and
producers. It provides farmers with a new market for their crops and holds
the promise of high profits for food conglomerates and other members in the
value chain.
"The most likely scenario is public opinion will drive more legislation
aimed at increasing the bio-crude blend for diesel fuels around the world,"
says Bill Downey, vice president and head of Kline`s Petroleum & Energy
consulting practice. "For the oil companies, this should be an incentive to
invest in biodiesel technology or forge a partnership with a biodiesel
producer in order to protect -- and even gain -- market share. They may
even consider alliances with Cargill, ADM, or the other world
agri-conglomerates for raw material supplies. Either way, they will want to
make sure they are well aligned so that if biodiesel becomes 15% or 20% of
the total demand, they are in position to take advantage of the
opportunity."
GLOBAL BUSINESS OPPORTUNITIES IN BIODIESEL FUELS, 2006-2016 will
provide a comprehensive assessment of the global market for biodiesel,
including supply and demand and economic viability analyses. In addition to
offering valuable market insights for producers of feedstock, additives,
and manufacturing technologies, the study will examine both the
opportunities and threats facing petroleum diesel and additive suppliers.
It will also include profiles of the major feedstock, additive, and
finished product suppliers, as well as the leading consumers in both the
private and public sector.
For more information on this study, go to
http://www.klinegroup.com/Y626.htm
or contact Geeta Agashe at +1-973-435-3484 or
geeta_agashe@klinegroup.com.
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