SINGAPORE, June 22 /PRNewswire/ -- Globally, the largest market for bio-diesel is the European Union. The EU's commitment to achieve a reduction in CO2 emissions by 8.0 percent between 2008 and 2012 has resulted in the setting of a target of 5.75 percent bio-fuels of all transportation fuel by December 2010 and 10 percent by 2020. Though the United States is a smaller market, it is witnessing rapid growth in terms of both new bio-diesel capacities coming on-stream as well as increased consumption of bio-diesel. Markets in Latin America, especially Argentina and Brazil, are also developing strongly.
While the SEA region is still a nascent market for bio-diesel, there are several strong drivers of growth for both increased supply as well as demand. Although targeting export markets is a primary objective for producers in some countries, especially Malaysia and Singapore, some SEA countries are developing domestic markets.
According to Frost & Sullivan's Asia Pacific Research Analyst of Chemicals, Material & Food Practice, Ratneswary Balasingam, bio-diesel is clearly viewed by most governments in the region as a way of reducing air pollution and contributing to the reduction of greenhouse gas emissions; to stimulate domestic agriculture; and most importantly, in many cases, to reduce oil imports and improve fuel security. For the latter two reasons, most countries aim to be self-sufficient in both feedstock and production.
"Despite these drivers, there is generally a low level of consumer awareness regarding bio-diesel and its benefits. In many cases, oil companies remain hesitant about offering bio-diesel blends. Also, unimaginable feedstock prices and lack of government initiatives in some countries, in terms of establi
|SOURCE Frost & Sullivan|
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