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Lignofuels Market is Growing at a CAGR of 7.75% (2023-2032): BIS Research

Dec 15, 2023 6:00 PM ET

Lignofuels Market is Growing at a CAGR of 7.75% (2023-2032): BIS Research

With a heightened awareness of climate change and environmental degradation, lignofuels emerge as a sustainable solution. They are derived from lignocellulosic feedstocks such as non-food crops, agricultural waste, and forest residue, providing a carbon-neutral or even carbon-negative alternative to conventional fossil fuels. The growing interest in lignofuels is evident in the expanding market, particularly the increased use of wood-based lignocellulosic feedstocks in biofuel production, as seen with Finland’s UPM company.  

The global lignofuels market is projected to reach $3.34 billion by 2032 from $1.58 billion in 2022, growing at a CAGR of 7.75% during the forecast period 2022-2032. 



Market Analysis: Trends, Data, and Growth Projections  

Ongoing research and development efforts have advanced the production processes of lignofuels, enhancing cost efficiency and effectiveness and driving market expansion. Leading-edge technologies in integrated biorefineries, exemplified by the Neste Porvoo Refinery in Finland, showcase the use of lignocellulosic sources for biofuel production. Global supportive policies, such as the U.S. Renewable Fuel Standard (RFS) mandating renewable fuel integration, ensure a stable market for lignofuels. The European Union’s Renewable Energy Directive (RED II) sets renewable energy targets, promoting the adoption of biofuels and lignofuels.

Increasing private and public investments in lignofuel projects spur innovation, with aviation and shipping sectors recognizing lignofuels as a viable and sustainable fuel source. Initiatives like biofuel testing in commercial aircraft by Boeing and Airbus signal a significant move towards sustainable aviation, which is expected to boost lignofuel growth. 

BIS Research, a leading market research firm, has released a report titled- Lignofuels Market, which discusses the challenges, growth factors, and future opportunities driving the remarkable growth of the lignofuels market. The detailed study is a compilation of 6 market data tables and 163 figures spread across 202 pages.   



Key Players and Market Segments

Some of the prominent producers of lignofuels are: 

  • Gevo, Inc.
  • Aemetis Inc
  • BlueFire Renewables
  • Axens
  • New Energy Blue, LLC
  • Enerkem
  • Praj Industries
  • Clariant AG
  • Raizen
  • Gevo, Inc.
  • Lessaffre
  • Ensyn Corporation
  • Red Rock Biofuels LLC
  • BlueFire Renewables
  • American Process
  • Axens
  • Enerkem
  • LanzaTech Global
  • BlueFire Renewables



The lignofuels market is segmented by end-user, source, processing technology, and region. In 2022, the automotive segment led the market based on end users. The agricultural residue segment is expected to dominate the market during the forecast period (2023-2032) in terms of source. Thermochemical processing technology held the leading position in 2022. Geographically, Europe and China are projected to witness increased traction in the production of lignofuels due to heightened mandates related to ethanol blending in these regions.   



Market Drivers, Challenges, and Opportunities 

Regulatory advancements, ongoing research, and collaboration between industry leaders contribute to the growth of the lignofuels market. Government policies, particularly in the U.S., categorize biofuels, fostering the development of cellulosic ethanol with price premiums and support from venture capital. Global collaborations, such as the Global Bioenergy Partnership, ensure sustainability criteria, promoting transparency and consistency in the industry. Abundant feedstock from waste and residues contributes to the eco-friendly appeal of lignofuels, emphasizing responsible utilization for both cost benefits and reduced environmental impact. 

However, challenges include the slower commercialization of lignofuels due to difficulties demonstrating cost-competitive high-yield production and the gradual upscaling of conversion technology. Managing the daily influx of often contaminated biomass proves intricate, hindering long-term industry growth. Feedstock price variations globally, with feedstock accounting for a substantial portion of production costs, pose additional challenges to the stability of lignofuels. 

On the positive side, trade opportunities emerge in advanced biofuel markets, driven by European restrictions on conventional biofuels. Mandates for bioethanol blending, supported by regulatory measures and fiscal incentives globally, create a promising avenue for lignofuels, especially in the transportation sector. The industry faces a dynamic landscape shaped by regulatory support, technological challenges, and evolving market dynamics. 



Analyst Note  

BIS principal analyst suggests: “Lignofuels, also called 2G ethanol or cellulosic ethanol, is gaining traction in the aerospace industry owing to its increased consumption in sustainable aviation fuel (SAF). The lignofuels market is expected to grow at a higher rate with decreasing costs. Currently, the production cost of lignofuels is high compared to ethanol or first-generation ethanol; however, the cost is expected to decrease with increasing technological advancements.” 



Related Reports 

Green Hydrogen Market 

Green Methanol Market 

Green Ammonia Market 

Transportation Grade Bioethanol Market 



About BIS Research 

BIS Research is a global B2B market intelligence and advisory firm focusing on deep technology and related emerging trends, which can disrupt the market dynamics in the near future. We publish over 200 market intelligence studies annually, focusing on several deep technology verticals.    

Our strategic market analysis emphasizes market estimations, technology analysis, emerging high-growth applications, deeply segmented granular country-level market data, and other important market parameters useful in the strategic decision-making for senior management.    

BIS Research offers syndicate and custom studies and expert consultations to firms, providing them with specific and actionable insights on novel technology markets, business models, and competitive landscapes.    




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