Is LATAM A Potential Glycerin Source in Future?


By: Bhavya S R --

12 November, 2014

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Is LATAM A Potential Glycerin Source in Future?

Robust growth in Biodiesel industry which witnessed 37% CAGR during 20072011 has led to the increased importance for the by-product Glycerin. The surge in biodiesel production is attributed to the strict mandates implemented across the globe which aim to reduce Green House Gas emissions and limit the dependency on conventional petroleum-based fuel imports to meet ever-growing domestic demand. Brazil is the second nation after the European Union to display such tremendous growth in biodiesel industry. The country initiated its biofuel policies with 2% mandates for biodiesel blending during 2008. After successful implementation of B5 mandate till 2013, it has increased the mandate to 7%. Similarly, Argentina started with biodiesel mandate of 5% witnessing CAGR of 13% in biodiesel production during 2009-2013. Differential tax on soybean oil and biodiesel exports coupled with higher exports to Europe added on to the domestic biofuel production. The Country has increased the mandate to 10% in November 2013 which is a remarkable leap as far as policy penetration is concerned. Global biodiesel industry growth has stabilized at 6% CAGR and projected to ease further to 4% owing to saturated domestic biodiesel industry in EU and US. However, the future growth is seen to be driven by the Asian and LATAM biodiesel industries. While Malaysia and Indonesia face hindrances due to poor infrastructure facility, LATAM is likely to emerge as the major contributor to global biodiesel and in-turn glycerin supply backed by the faster implementation of biodiesel mandates.   Author: Bhavya S R


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