Second generation biofuels or advanced biofuels are the way forward from the first generation biofuels, which is made from vegetable oils and sugar. The only differentiating factor between first generation biofuels and second generation biofuels is the feedstock. Second generation biofuels are manufactured from various types of biomass. Biomass is mainly derived from plant sources. However, second generation biofuels can also be manufactured from animal derived biomass. First generation biofuels were dependent on food crops and production of adequate bio fuel was a challenge, as it competed with food supply. Moreover, greenhouse emissions of first generation biofuels were nominally less than that of fossil fuels. Dependence on food crops also rendered it a costly alternative to conventional petroleum leading to limited acceptance. Second generation biofuels are capable of overcoming these handicaps and produce significantly higher quantities of biofuels with higher environmental benefits and lower cost. The different thermo-chemical technologies currently in use or under development are gasification, pyrolysis and torrefaction.
 
The market for second generation bio fuel is driven by the need to produce clean and sustainable energy, with minimal environmental impact. Second generation bio fuel manufacturing technology enables production of commercially acceptable fuel from inedible biomass and avoid the “food vs fuel” dilemma. The main feedstocks used for second generation biofuels are agricultural and non food crop residues, wastes procured from forestry industry, energy crops, jatropha and algae. Feedstock cost accounts for over 50% of the product cost, and cheap availability of the feedstocks lead to cheaper product. Second generation biofuels are yet to achieve large scale commercialization and is expected to become cheaper over time with the development of technology. Some types of second generation biofuels are in production as of today. However, large scale commercialization is not expected to come in force until 2020, without government support. Second generation biofuels have tremendous future opportunities as automotive and aviation fuel. In recent years, biofuels have established their importance among various other fuels. With rising oil prices and mounting concerns over energy security, focus has shifted to renewable sources of energy. Biofuels, with ability to fuel transport sector with low carbon emission as compared to conventional fuels, have attracted investments from various large market players. Production of second generation biofuels is attractive for countries with no petroleum reserves as it helps to reduce foreign exchange spending towards import of petroleum.
 
There are no apparent restraints to the market apart from technology development and feedstock procurement. However, the highly volatile crude oil prices in the global market might reduce the market attractiveness for the second generation biofuels market. With crude oil prices plunging by more than 50% in a year, cost competitiveness is a factor for the market.
 
North America is the largest producer of second generation biofuels, with high investments in research and development. Europe is the second most attractive market in terms of demand for biofuels. However, Asia Pacific with its enormous resource is gradually catching up with a few Chinese companies investing in the futuristic market. Global laws regarding recution of greenhouse gasses and production of clean energy is expected to drive the market with governments in North America and Europe providing incentive to the second generation biofuels manufacturers. 
 
Some of the major companies producing second generation biofuels are Blue Marble Biomaterials LLC, Algenol, Chemrec, DuPont Danisco Cellulosic Ethanol LLC, Fujian Zhongde Energy Co., Ltd, Gevo,Inc., Gushan Environmental Energy Ltd., PetroSun, Inc., Sapphire Energy and Solazyme, Inc.

This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.

Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:

  • Customer Experience Maps
  • Insights and Tools based on data-driven research
  • Actionable Results to meet all the business priorities
  • Strategic Frameworks to boost the growth journey

The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.

The following regional segments are covered comprehensively:

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • The Middle East and Africa

The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.

Below is a snapshot of these quadrants.

1. Customer Experience Map

The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.

2. Insights and Tools

The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.

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The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.

4. Strategic Frameworks

The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.

The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:

1. What can be the best investment choices for venturing into new product and service lines?

2. What value propositions should businesses aim at while making new research and development funding?

3. Which regulations will be most helpful for stakeholders to boost their supply chain network?

4. Which regions might see the demand maturing in certain segments in near future?

5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?

6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?

7. Which government regulations might challenge the status of key regional markets?

8. How will the emerging political and economic scenario affect opportunities in key growth areas?

9. What are some of the value-grab opportunities in various segments?

10. What will be the barrier to entry for new players in the market?

Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.

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Second Generation Biofuels Market

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