Bio-butanol Market – Global Industry Insight, Trends, Outlook, and Opportunity Analysis 2017-2025

Bio-butanol easily blends with gasoline due to its low vapor pressure. It contains as much as energy as gasoline and its non-corrosive nature gives it advantage over bioethanol.

Bio-butanol is an alcohol, which is used as a fuel or organic solvent. It is prepared by fermentation of sugar, starch or cellulosic feedstock such as wheat, sugar beet, corn, straw, and wood. The purpose of using bio-butanol is to reduce consumption of crude oil. They have higher octane number, larger flammability limits, higher flash point and higher heat of vaporization. Bio-butanol easily blends with gasoline due to its low vapor pressure. It contains as much as energy as gasoline and its non-corrosive nature gives it advantage over bioethanol.

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Bio-butanol is also used as cleaner, adhesives, jet fuel, synthetic rubber, as a solvent in paints, bio-based plastics and fibers. They are also expected to meet 20% of the world’s fuel demands. The requirement for clean energy is the main driver for the use of bio-butanol.

Bio-butanol fuel Market Taxonomy

On the basis of raw material, the bio-butanol market is classified into:

    • Wheat

    • Sugar beet

    • Corn

    • Straw

    • Wood

    • Others

On the basis of application, the bio-butanol market is classified into:

    • Acrylates

    • Acetates

    • Glycol ethers

    • Solvents

    • Plasticizers

    • Others

On the basis of end users, the bio-butanol market is classified into:

    • Petrochemical industry

    • Automobile industry

    • Aviation industry

    • Consumer goods

    • Textile industry

    • Others

The raw materials used in process of bio-butanol are wheat, sugar beet, corn, straw and wood. The availability of raw material is a major concern with the bio-butanol preparation process. The properties like polymer chain formation, blending, paint and cleaner makes it applicable for the products such as acrylates, acetates, glycol ethers, solvent and plasticizer. Bio butanol is used as a fuel in internal combustion engines in petrochemical and automotive industry. Bio-butanol has the potential to reduce carbon emissions by 85% compared to gasoline. It is a possible large scale alternative to gasoline.

Bio-butanol Market Outlook

North America is the largest bio-jet fuel market due to the presence of low temperature weather in most of the countries followed by Western Europe which is second largest. Bio-butanol used in automobile sectors are the main reason for these largest market industry. Significant investment in R&D in these regions has resulted in alternatives for petroleum derived fuels.

Asia Pacific is estimated to be the fastest growing market in the forecast period due to the population increase and demand for greener paints and coatings. India and China are expected to have the most demand in the bio-jet fuel market in the forecast period due to rise in the aviation and transportation segments.

In Europe, demand for bio-butanol is increasing due to the government initiatives and stringent environmental regulations to shift away from petroleum products. These regulations are result of meeting the aims set out in Kyoto Protocol.

In Middle East, the crude oil derived fuels such as gasoline, diesel, and kerosene and jet fuel are very cheap due to proximity to the resource. This makes it very difficult for bio-based alternatives to enter the market, as they are easily out priced.

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Bio-butanol Market Challenges

The variation in availability and cost of raw materials is a major problem as it increases the production cost of bio-butanol. Currently, bio-butanol costs more than bio ethanol. Also the government regulations against the use of raw material are the challenges for the bio butanol market.

Some of the key companies dominating the market are Biobutanol include Bioenergy International, Butalco GmBH, Cobalt Biofuels and Arbor Biofuels backed by oil manufacturers like TetraVitae Biosciences and Metabolic Explorers.

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