By Erin Voegele | October 08, 2018
The International Energy Agency released its Renewables 2018 market analysis on Oct. 8, predicting that fuel ethanol will account for two-thirds of the worldwide growth in conventional biofuels between 2018 and 2023.
The IEA’s report focuses on the share of renewables within the global power, heat and transportation sectors, with a particular focus on bioenergy.
According to the report, of the three sectors, transportation currently has the lowest penetration of renewables. While renewable energy in the sector is expected to grow 19 percent over the next five years, the overall share is expected to remain relatively small.
The report predicts that renewables used in the transportations sector will grow from 3.4 percent in 2017 to 3.8 percent in 2023. Despite this modest growth, the report indicates renewables will account for 12 percent of transportation fuel demand growth.
The IEA’s forecast shows biofuels production is expected to increase 15 percent over the next five years, reaching 165 billion liters (43.59 billion gallons). By 2023, biofuels are expected to account for nearly 90 percent of the renewables used in transport. Fuel ethanol accounts for two-thirds of biofuel production growth, while biodiesel and hydrotreated vegetable oil (HVO) account for the remainder.