Biofuel Additive Market Not So Cliche, Sustainable Growth Expected

Biofuels are obtained from biomass-derived feedstock in the form of ethanol. These are an alternative to traditional petroleum fuels, only much cleaner due to lower greenhouse emissions. However, auxiliary disadvantages of high fuel foaming, injector clogging and corrosion, and low oxidation stability are associated with the use of biofuels. To add usability and enhance their performance, certain specialty chemicals are used as additives. These additives ensure extended stability during storage and transportation, under different temperature conditions and inhibits corrosion of engine parts during flow. The keynote is that the growth of both biofuel and biofuel additive market are closely aligned. The world Biofuel Additive Market is expected to reach $12,560 million by the end of 2022.

Drivers of the market

Increase in global demand for fuel has spiraled from the heavy manufacturing volumes in the automotive industry. Dense consumption patterns of conventional gasoline and renewable alternatives have further led to realizing need for using biofuel additive as an assist to their choice of fuel to make them suitable for use within government standards. Products of the segment in conjunction with fuels help vehicles achieve greater power with higher compression ratios. Consequentially, automakers strongly suggest its use and are even considering introducing slight modifications to their engines so that they can achieve optimized performance levels. Regulatory frameworks from governmental organizations further necessitate their use and drives the market. The depleting quality of fuel available at consumers’ end makes the additives inevitable for usage, further adding to the net demand for market. 

Segmented overview

Analysts at Allied Market Research segment the industry based on type, application and geography to provide a detailed understating of the industry structure. Based on the types offered, the biofuel additive market products can be viewed as antioxidants, corrosion inhibitors, cold flow improvers, detergents & dispersants, octane & cetane improvers, and dyes & markers. The range of detergents and dispersants singularly captured one-third of overall production volumes in 2015, mainly because they ‘cleanse’ the fuel supply system and are mandated in use by the governmental authorities. 
Two types of biofuels call for the implementing additives – biodiesel and bioethanol. Out of these applications, bioethanol accounted for more than 50% of demand owing to rising popularity of bioethanol-blended gasoline in the North America region. North America also leads when it comes to geographical segregation of market, with two-fifths of the market captured in terms of volume. Next to it, Asia-Pacific poses as the fastest developing region in the global scenario. 

Current market stance

The U.S. market is quite familiar with the trend of adding ethanol derived from fermented corn feedstock to gasoline. During the early stages, protests did surface from environmental critics, who raised concerns such as using food crop for fuel generation and health of farm soil. However, Later reports rendered all issues baseless through deep situational analysis. Fuel experts, on the contrary, found the ethanol addition quite environment-friendly. Carbon footprint of corn-derived ethanol was observed to be lower than ever and power in vehicle engine doubled. Vehicle manufacturers approve greatly of high-octane mid-level ethanol fuel for engines and suggest little modifications that could help attain better fuel economy. Moreover, they were better octane suppliers than the distilled aromatics alternative. 
While organizations such as the EPA remain to review the advantages and signal green for further testing, researchers continue variable approaches to develop natural additives. The commendable work of a Wicklow student, De Barra, would be worth mentioning at this point, who presented the idea of using pine needles extract as a biofuel additive. While the idea proved unsuitable for producing biodiesels, it revealed future promises of deriving biofuel additives or aviation fuel. 

The picture with homegrown fuels is deeper than one does imagine. Added to all the green benefits, biofuels are a great way to protect regional economies. Analysts suggest that the growth of the industry shall reinvent agricultural segment and in due course of development create immense job opportunities, employing a huge multitude. Then there are additional benefits of securing energy dependencies within the boundaries rather than foreign gasoline imports. The U.S. market currently thrives on the idea with a multi-fold increase in domestic production of ethanol as a biofuel additive.

Challenges and prospects

There has a been newfound opposition from Organization of the Petroleum Exporting Countries (OPEC), with them controlling the oil prices and at times blocking the market for others. This has invited multiple billion dollar investments for felicitating expanded research and development as well as manufacturing facilities. Corporate monopoly in the fuel segment by gasoline suppliers at various points discourage the additives supply channel. Distorting availability and spreading misconceptions is a part of their strategy. In such a background, it is compulsory for vendors to track product flow in main sales avenue to retain profits and increase them. Moreover, awareness programs must be conducted to educate the user population by appropriate agencies to eliminate all misconceptions. 

As per industry experts, the global biofuel additive market is bound to experience sustainable growth in the upcoming decade. Low investment interests due to high costs of producing biofuels leading to its standing demand will be backed by future demands of high-end fuel with minimal harmful environmental impact. By the end of the forecast period, i.e. 2015 to 2022, the market is set to achieve its revenue and production targets.

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