BNEF report outlines Bioenergy Leadership Forum
Bloomberg New Energy Finance recently published a report outlining the results of its Bioenergy Leadership Forum, an invitation-only executive think tank of 50 bioenergy sector thought leaders.
According to the report, these leaders noted that the future of next-generation biofuels is closely tied to biochemical production. They said biochemicals are not a means to getting to transportation fuel production, however, as higher margins associated with biochemicals are not likely to help the transition to fuels. Rather, they said it would be easier to prove biofuel processes first, before moving into the chemical markets. The report also specifies that the future of the industry is likely in large, integrated biorefineries that produce fuels and chemicals simultaneously.
Panel participants also agreed that biochemicals will not require subsidies to compete with their fossil-based counterparts. Diversification, however, will be a crucial component of risk management.