Profiting from the EU Biodiesel Market : The choice of raw materials and production locations.
Abstract
The rapid expansion in biodiesel production capacity is placing pressure upon the availability of vegetable oil and animal fat raw materials in those parts of Europe where the interest in biodiesel use is strongest. Looking ahead, it is to be expected that this demand will continue to bid up the prices of oils and oilseeds. The ways in which the various vegetable oil and oilseed markets unfold in response to this new outlet will have a major impact upon the profitability of biodiesel manufacture. Substantial expansion in the biodiesel sector could affect profitability in several ways. First, it may be difficult to stimulate oilseed supply without bidding prices up significantly. Second, if vegetable oil demand cannot be diverted from food to fuel uses, the potential profit from biodiesel manufacture could also be modest. Third, these developments are unlikely to be uniform across the EU, as vegetable oil availability and prices will tighten more in some regions than others. Moreover, the prospect of imports of vegetable oils - or, potentially, biodiesel methyl ester - for blending will bring another dimension to the decision regarding the best location for biodiesel manufacture and to its profitability. In this report, LMC assesses the implications of large scale biodiesel output in the EU and the outlook for the profitability of the sector. The study comprises two volumes: the Executive Summary and the Main Report. The rapid expansion in biodiesel production capacity is placing pressure upon the availability of vegetable oil and animal fat raw materials in those parts of Europe where the interest in biodiesel use is strongest. Looking ahead, it is to be expected that this demand will continue to bid up the prices of oils and oilseeds. The ways in which the various vegetable oil and oilseed markets unfold in response to this new outlet will have a major impact upon the profitability of biodiesel manufacture. Substantial expansion in the biodiesel sector could affect profitability in several ways. First, it may be difficult to stimulate oilseed supply without bidding prices up significantly. Second, if vegetable oil demand cannot be diverted from food to fuel uses, the potential profit from biodiesel manufacture could also be modest. Third, these developments are unlikely to be uniform across the EU, as vegetable oil availability and prices will tighten more in some regions than others. Moreover, the prospect of imports of vegetable oils - or, potentially, biodiesel methyl ester - for blending will bring another dimension to the decision regarding the best location for biodiesel manufacture and to its profitability. In this report, LMC assesses the implications of large scale biodiesel output in the EU and the outlook for the profitability of the sector. The study comprises two volumes: the Executive Summary and the Main Report.
The rapid expansion in biodiesel production capacity is placing pressure upon the availability of vegetable oil and animal fat raw materials in those parts of Europe where the interest in biodiesel use is strongest. Looking ahead, it is to be expected that this demand will continue to bid up the prices of oils and oilseeds. The ways in which the various vegetable oil and oilseed markets unfold in response to this new outlet will have a major impact upon the profitability of biodiesel manufacture. Substantial expansion in the biodiesel sector could affect profitability in several ways. First, it may be difficult to stimulate oilseed supply without bidding prices up significantly. Second, if vegetable oil demand cannot be diverted from food to fuel uses, the potential profit from biodiesel manufacture could also be modest. Third, these developments are unlikely to be uniform across the EU, as vegetable oil availability and prices will tighten more in some regions than others. Moreover, the prospect of imports of vegetable oils - or, potentially, biodiesel methyl ester - for blending will bring another dimension to the decision regarding the best location for biodiesel manufacture and to its profitability. In this report, LMC assesses the implications of large scale biodiesel output in the EU and the outlook for the profitability of the sector. The study comprises two volumes: the Executive Summary and the Main Report.
Palabras clave:
Consumo.
Materia prima
Mercados.
Producción.
Rentabilidad.
Consumo.
Materia prima
Mercados.
Producción.
Rentabilidad.