Fast-pyrolysis bio-oil (FBPO) Market Size (2023 – 2030)

In 2022, the Global Fast-pyrolysis bio-oil Market was valued at USD 329.89 million and is projected to reach a market size of USD 469.14 million by 2030. Over the forecast period of 2023-2030, the market is projected to grow at a CAGR of 4.5%. 

Market Overview

Fast-pyrolysis bio-oil (FBPO) is a liquid biofuel made from biomass using the fast-pyrolysis technique. In this process, biomass is heated to high temperatures (usually 400–600 degrees Celsius) in the absence of oxygen. This causes the biomass to degrade into a liquid bio-oil as well as some solid char and fumes. The market for Fast Pyrolysis Bio-Oil (FBPO) is predicted to expand in the next few years, driven by the rising demand for low-carbon and sustainable energy sources.

Fast pyrolysis bio-oil is a dark, viscous liquid that contains a variety of organic molecules, such as acids, aldehydes, ketones, and sugars. It typically consists of 75–80% organic compounds, with the remaining parts being water and inorganic elements. Market expansion is anticipated to be fuelled by rising public awareness of the environmental advantages of biofuels and rising demand for renewable energy sources. FBPO is used for numerous applications which include power generation and heating. One of FBPO's key benefits is that it can be made from a variety of biomass feedstocks, such as wood chips, agricultural waste, and even algae.

Fast-pyrolysis bio-oil (FBPO) Market Driver

Growing demand for renewable, low-carbon energy sources will boost the market growth:

The demand for renewable energy sources and growing environmental awareness are driving the growth of the FBPO market. Several governments and organisations are investing in low-carbon, long-term energy sources due to worries about environmental issues like climate change and pollution as well as a desire to lessen reliance on depleting fossil fuels. FBPO is a sustainable biofuel that offers a low-carbon substitute for fossil fuels because it is produced from biomass feedstocks.

FBPO as a feedstock for the manufacture of chemicals and materials will drive the market growth:

Another use that is propelling market growth is the use of FBPO as a feedstock in the manufacture of chemicals and materials. The use of FBPO as a feedstock is anticipated to rise in the next years due to increased demand for bio-based chemicals and materials. This is due to the fact that FBPO may be converted into bio-based chemicals such as acetic acid, formic acid, and levulinic acid, as well as used to create bio-based polymers and other goods and are considered more sustainable and environmentally friendly than fossil-based equivalents. Furthermore, employing FBPO as a feedstock can generate additional money for biofuel producers while also improving the overall economics of the FBPO manufacturing process.

Fast-pyrolysis bio-oil (FBPO) Market Challenges

The high acidity of FBPO will restrain the market growth:

The high acidity of the bio-oil is one of the most significant challenges the FBPO business is facing. Fast pyrolysis produces a black, viscous liquid rich in organic molecules such as acids, aldehydes, ketones, and sugars. These acids can cause corrosion in engines and boilers, making it impossible to use FBPO as a fuel without first completing pre-treatment and upgrading operations. These procedures include acid neutralisation and esterification, and catalytic upgrading, all of which can enhance the quality of the bio-oil and make it more suitable for use as a fuel. However, these upgrading methods might raise the cost of generating FBPO, making it less cost-effective in comparison to other biofuel sources.

Competition from other biofuel  sources will impede the market growth:

Another significant difficulty for the FBPO industry is competition from alternative biofuel sources. Ethanol and biodiesel are already well-established in the market and have a better-developed infrastructure. These biofuels may be more cost-effective to manufacture, making it more difficult for FBPO to acquire market share. Furthermore, because these biofuels have been more extensively embraced and sold on a larger scale, FBPO has become less appealing to investors and corporations wishing to invest in biofuels. Furthermore, the absence of infrastructure and technology to handle, transport, and store FBPO makes its commercial applications less viable.

Impact of COVID-19 on the Fast-pyrolysis bio-oil (FBPO) Market:

The COVID-19 pandemic's influence on the Fast Pyrolysis Bio-Oil (FBPO) industry has been mixed. On the one hand, the pandemic has lowered demand for biofuels due to the economic crisis and less travel. This has resulted in lower biofuel prices and less investment in biofuel production. On the other hand, the pandemic has heightened awareness of the importance of sustainability and the need for cleaner, low-carbon energy sources. As a result, both the public and commercial sectors have increased their investment in biofuels, including FBPO. Furthermore, the pandemic has highlighted the need for more robust and self-sufficient supply networks, leading to a surge in interest in locally derived biofuels.

FAST-PYROLYSIS BIO-OIL MARKET REPORT COVERAGE:

Fast-pyrolysis bio-oil (FBPO) Market Segmentation - By Application

• Electricity generation

• Fuel

• Chemical

• Agriculture and Forestry

• Others

It is anticipated that the use of FBPO as a biofuel in cars and trucks will help the market in this area expand. Additionally, it is predicted that FBPO will be used significantly more in the industrial sector, including in the generation of heating and electricity. It is a fuel that can be used to generate electricity and heat in a variety of settings, including residential, commercial, and industrial ones. It is a desirable fuel source alternative and has a high energy content and can be used in various applications in today’s existing industry infrastructure. The production of chemicals and other goods may also use FBPO as a raw material. It can also be used to produce bio-based chemicals like acetic, formic, and levulinic acids as well as bio-based polymers and other goods.

Fast-pyrolysis bio-oil (FBPO) Market Segmentation - By Upgrading Technology

• Acid Neutralization

• Esterification

• Catalytic Upgrading

The Fast Pyrolysis Bio-Oil (FBPO) market may be classified into the following segments based on upgrading technology - acid neutralization, esterification, and catalytic upgrading. The most significant growth is anticipated in catalytic upgrade technology.

Acid Neutralisation technology is the process of neutralising the acidity of the bio-oil by adding a base to the bio-oil, such as sodium hydroxide. This increases the biostability and manageability of the oil, making it more appropriate for use as a fuel. The method of neutralisation and esterification entails neutralising the acidity of the bio-oil and turning the carboxylic acids into esters. This enhances the biostability and manageability of the oil while simultaneously increasing its energy content, making it more appropriate for use as a biofuel.

Fast-pyrolysis bio-oil (FBPO) Market Segmentation – By Region

• North America

• Europe

• Asia Pacific

• Rest of the World

The rising need for biofuels in the transportation sector and government support for bioenergy are anticipated to drive growth in the FBPO market in North America. Major markets in this region include the US and Canada. Moreover, the raising demand for biofuels in the transportation sector and government support for bioenergy are driving the FBPO market in Europe. Major markets in this region include France, Germany, and the UK. Additionally, due to rising transportation sector demand for biofuels and government support for bioenergy, the FBPO market in the Asia Pacific region is anticipated to expand. Important markets in this area include China, India, and Japan.

Fast-pyrolysis bio-oil (FBPO) Market Segmentation – Key players

Some of the key players in the Fast Pyrolysis Bio-Oil (FBPO) Market are:

1. Ensyn Technologies

2. Velocys

3. Pyrovac

4. BiofuelNet Canada

5. Bioenergy Europe

6. Bio-Oil Research

7. Bio-Therm Energy

8. Enerkem

9. KiOR

10. Rentech