The United Kingdom-based World Economic Forum released The Future of Industrial Biorefineries, written by David King, on June 29, 2010. Biorefinery industry could supplement the worldwide demand for sustainable energy, chemicals and materials, aiding energy security. However, they first must overcome obstacles that stand in their way.
Biomass to Generate Revenue
"The emerging biomass value chain will create significant business opportunities and new winners, with technology and science-driven companies with access to key enzyme and microbial technologies being central to the development of the bio-based economy. The growth of the bio-based economy could create significant economic growth and job creation opportunities, particularly in rural areas, where incomes and economic prospects are currently moderate, and in advanced manufacturing," King said. King is director of the Smith School for Enterprise and the Environment at Oxford University.
A biomass value chain is expected to create billions of dollars in revenue by 2030. Here is the breakdown.
- $15 billion for agriculture
- $89 billion for biomass production
- $30 billion for biomass trading
- $10 billion for biorefining inputs
- $80 billion for biofuels
- $6 billion for bioplastics
- $65 billion for biomass power and heat
A number of technical, strategic and commercial obstacles must be addressed before any large-scale commercialization of the biorefining industry can succeed. For example, there must be significant advances in the development and deployment of bio-based technologies. Better infrastructure is necessary, and currently, the industry has high costs. In addition, there is an issue of restricted land and the availability of biomass, but biorefineries using plant or vegetable feedstock could transition more easily to more sustainable bio-based production, the World Economic Forum report said.
Although the development of the bio-based economy is at an early and high-risk stage, it has the potential to transform the future of the world and reduce risks associated with climate change. However, government must play a key role in providing support to make the biorefinery industry successful.
Biofuels Industry Needs Seed Money
Another report found the biorefining industry would suffer unless investors take a chance on biofuels. The report, Scaling Enterprise Finance: The Future of Biofuels, was released June 24, 2010, from the United States-based Milken Institute. Joel Kurtzman, executive director of the Center for a Sustainable Energy Future, wrote the report.
Even though global ethanol and biodiesel production revenues reached $34.8 billion in 2008, it paled in comparison to the $1.76 trillion in revenues the oil companies received. Improvements are being made in the industry, such as technological advances that increase the yield of corn-based ethanol. Finding capital is more of a challenge.
The Milken Institute report recommends feedback profit incentives, tolling arrangements, crop insurance and long-term forward markets to help spur investors' financing.
Two reports argue that biorefinery industry and biofuels have the potential for billions in revenues, but they have to overcome immediate challenges.
Louise Harris - Louise Harris has worked in the journalism field since she graduated in 1989 from the University of Maryland College of Journalism. She is ...
