Global biofuel production is forecast to rise by 25% by 2024, with China leading output growth for the first time, the International Energy Agency (IEA) said this week.
Total production, which includes ethanol, biodiesel and hydrotreated vegetable oil (HVO), grew at its fastest pace in the past five years in 2018, fueled by a surge in Brazil’s ethanol output.
But China is now set to lead growth, adding roughly 9.5 billion liters capacity to the market, Kallanish Energy reports. “China is set to have the largest biofuel production growth of any country. The rollout of 10% ethanol blending in a growing number of provinces and increasing investments in production capacity drive a tripling of ethanol production by 2024,” said the IEA.
Brazil’s total biofuel incremental capacity ranks second at roughly 8 billion liters and the U.S. ranks third at around 6 billion liters. The IEA noted, however, the U.S. and Brazil will still provide two-thirds of total biofuel production in 2024.
Asia accounts for half of the estimated growth, as its ambitious biofuel mandates aimed at reinforcing energy security boost demand for agricultural commodities and improve air quality. In addition to biofuels, renewable electricity provides around 10% of renewable energy in transport by 2024, most of which is in China, the IEA said.
