Buoyed by public and private R&D, industry investment from the public and private sectors, fossil fuel prices, and general regulatory support, algae biofuels technologies are ripe for double-digit growth potential over the short term. According to a recent SBI Bulletin by heavy industry and energy research publisher SBI, algae biofuels will post a compound annual growth rate of 43.1% that will lead the market to $1.6 billion in 2015.
Investment into algae biofuels is shifting as government grants, which were a major funding source in 2009 when over $100 million in funding from the U.S. Department of Energy was distributed, is being replaced by strategic partnerships and slowly growing internal company revenues. According to the Bulletin, strategic partnerships include a range of industry sectors such as oil & gas, biofuels & agricultural processing, chemicals & plastics, biotechnology, power utility and wastewater management.
"Strategic partnerships from ExxonMobil, Chevron, BP, Dow Chemical, Desmet Ballestra and many others will drive the investment needed to successfully commercialize algae biofuels," said Shelley Carr, publisher of SBI. "Private investment and venture capital will also provide funding through 2015."
The primary factors that affect the size and growth of algae biofuels technology markets can be categorized as industry factors relating to investment, technological advancement and business development or market factors that spur demand for algae biofuels. The high yield per acre and minimum environmental impact of algae biofuels makes it one of the most viable and attractive biofuels.
"SBI Bulletin: Algae Biofuels Technologies - Global Market and Product Trends 2010-2015," provides market projections for algae biofuels and analyzes industry development trends in investments, research and development, project financing, biofuel production facility construction, biofuel crop and petroleum demand. In addition, it outlines pertinent trends affecting the real and prospective value of algae biofuels (along with the associated technologies) compared to alternative biofuels and petroleum.