Environmental Regulations Kindle the Southeast Asian Automotive Biofuels Market, Finds Frost & Sullivan
(Frost & Sullivan/Sacramento Bee) Removing subsidies for conventional fuels and providing incentives for biofuels will bolster market growth
New analysis from Frost & Sullivan (http://www.chemicals.frost.com), Strategic Analysis of Southeast Asian Automotive Biofuels Market, finds that the market earned revenues of more than $1.78 billion in 2011 and estimates this to reach $ 4.3 billion in 2017.
Following the signing of the Kyoto Protocol, Southeast Asian governments introduced different blending mandates for biofuels to curb emissions, boost agriculture and protect against fluctuations in the crude oil market.
“Importantly, most Southeast Asian countries are importers of crude oil,” said Frost & Sullivan Research Analyst Shree Vidhyaa Karunanidhi. “To reduce their dependence on imports and still meet energy requirements, governments in the region are actively promoting biofuels as a healthy and potentially more sustainable alternative to petroleum-based oils.”
…The market has also been pegged back by government subsidies for petroleum-based fuels, which restrains the consumption of blended fuels.
“The governments can aid the market by enforcing blending legislation, removing subsides for petroleum-based fuels and providing incentives for consumers and tax breaks for biofuel companies,” noted Karunanidhi. “Meanwhile, biofuel companies should work on improving extraction efficiency and securing raw materials either by backward integration or signing deals with farmers and distributors.” READ MORE