RenewableS 2013 GlObal STaTUS RePORT - REN21

data. About 230 co-firing plants were operational or planned
by year’s end, located mainly in northern Europe, the United
States, Asia, and Australia. 52
Most sugarcane-producing countries, such as Brazil, generate
combined heat and power using bagasse. 53 Grid-connected
bagasse CHP plants also exist in Mauritius, Tanzania, Uganda,
and Zimbabwe, where a community-scale biogas plant is also
being constructed in Harare to convert organic waste to heat
and electricity. 54 Several other African countries, including
Kenya, plan similar installations. 55
■■Transport Biofuel Markets
Liquid biofuels continue to make a small but growing contribution
to transport fuel demand worldwide, currently
providing about 3% of global road transport fuels. They also
are seeing small but increasing use in the aviation and marine
sectors. 56 Growth in biofuels markets, investment, and new
plant construction has slowed in several countries in response
to a number of factors: lower margins, spiking of commodity
prices, policy uncertainty, increased competition for feedstock,
impacts of drought conditions on crop productivity, concerns
about competition with food production for land and water
resources, and concerns about the sustainability of production
more broadly. 57 Even so, biofuel blend mandates continue to
drive demand. (See Policy Landscape section).
Global production of fuel ethanol in 2012 was an estimated
83.1 billion litres, down about 1.3% by volume from 2011. This
was offset partly by a small increase in biodiesel production. 58
(See Figure 8.) Outside of the United States, global ethanol
production was up more than 4%, but U.S. ethanol production
dropped more than 4% to 50.4 billion litres, due partly to high
corn prices resulting from the mid-year drought. By contrast,
Brazil’s production increased 3% to 21.6 billion litres, although
investment in new sugarcane ethanol plants was very low compared
with recent years. 59 Overall, the United States accounted
for 61% (63% in 2011) of global ethanol production and Brazil
for 26% (25% in 2011). 60
The other leading producers included China, Canada, and
France, as in 2011, although at much lower production volumes
than the two leaders. Demand continued to rise in Sweden,
where around 200,000 flex-fuel vehicles are using high blends
(up to E85) of locally produced and imported ethanol. 61
The average world ethanol price in 2012 was approximately
USD 0.85/litre (USD 1.20/litre gasoline equivalent), having
increased steadily from around USD 0. 41/litre in 2006; the
U.S. domestic price fell from about USD 0.60/litre in 2011 to
USD 0.55/litre in 2012, until the mid-year drought pushed it
back to 2011 levels. 62 The average world price for biodiesel was
around USD 1.55/litre of gasoline equivalent, higher than in the
previous five years, when prices ranged between USD 0.90 and
USD 1.50 per litre. 63
Global biodiesel production continued to increase, but at
a much slower rate relative to the previous several years,
reaching 22.5 billion litres in 2012, compared with 22.4 billion
litres in 2011. 64 The United States was again the world’s
leading producer, followed by Argentina, Germany, Brazil, and
France—with German and Brazilian production being approximately
equal. 65
U.S. biodiesel plants produced 3.6 billion litres in 2012, up
only slightly over 2011 levels, but approaching the target set by
the Environmental Protection Agency (EPA) under the federal
Renewable Fuels Standard, or RFS. This standard requires 4.8
billion litres (1.28 billion gallons) of biodiesel to be included in
diesel fuel markets in 2013. 66
Europe accounted for 41% of total global biodiesel production,
led by Germany, which produced an estimated 2.7 billion litres
in 2012 (down 14% relative to 2011). 67 Production declined 7%
across the region and in most European countries—including
Spain (-32%), Portugal (-14%), and Italy (-44%)—but it was
up in France (18%), Poland (63%), and the United Kingdom
(53%). 68
Brazil’s total annual biodiesel production from soybean oil
(77–82%), beef tallow (13–17%), and cottonseed oil (2%)
increased slightly to at 2.7 billion litres. 69 Argentina passed
Germany to rank second for total biodiesel production, at
2.8 billion litres. 70 Elsewhere in Latin America, three jatropha
plantations were certified in Mexico by the Roundtable on
Sustainable Biofuels, and a small biodiesel plant using jatropha
oil was established in Cuba. 71
China’s biofuel production remained unchanged at around
2.1 billion litres of ethanol and 0.2 billion litres of biodiesel. 72
Thailand increased both its ethanol and biodiesel production
to a total of 1.6 billion litres, 40% higher than in 2011. 73 India
overtook Italy in total biofuel production in 2012, increasing its
ethanol production by 25% to 0.5 billion litres. 74
On a regional basis, North America continued to lead in
ethanol production, and Europe in the production of biodiesel.
However, production of both ethanol and biodiesel is increasing
rapidly in Asia. 75 Biofuels production in Africa is still very limited,
but markets are slowly expanding, and ethanol production rose
from 270 million litres in 2011 to an estimated 300 million litres
in 2012. 76 In Zambia, for example, the 200,000 litres of jatropha
biodiesel produced in 2011 was expected to triple in 2012 as
more feedstock became available. 77
In 2012, U.S. production of advanced biofuels from lignocellulosic
feedstocks reached 2 million litres; it was anticipated
that 36 million litres would be produced in 2013, driven partly
by demand from the military. 78 These volumes, however, remain
only a small proportion of the original U.S. mandate under the
RFS that was subsequently waived. 79 China also made progress
on advanced biofuels in 2012, with around 3 million litres of
ethanol produced from corn cobs and used in blends with gasoline.
80 Europe has several demonstration plants in operation but
each has produced only small volumes to date. 81
Biomethane (biogas after removal of carbon dioxide and
hydrogen sulphide) is now used widely as a vehicle fuel in
Europe. During 2012 in Germany, for example, the share of
biomethane in natural gas increased from 6% to more than
15%, and the number of fueling stations selling 100% biomethane
more than tripled, from 35 to 119. 82 Further, 10% of the
natural gas vehicles in Germany used compressed biomethane
fuel rather than compressed natural gas methane. 83 In Sweden,
50% of Stockholm city council’s car fleet of 800 vehicles ran on
biomethane as of October 2012. 84
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