Coherent Market Insights

Bio-Butanol Market Poised to Achieve Significant Growth in the Years to Come


Seattle, WA -- (SBWIRE) -- 03/11/2020 -- Bio-butanol is an alcohol that is used as a fuel or organic solvent. This solvent is prepared by fermenting sugar, starch or cellulosic feedstock such as wheat, sugar beet, corn, straw, and wood. Bio-butanol is used as a substitute to crude oil. They have higher octane number, larger flammability limits, higher flash point, and higher heat of vaporization, which makes it a good fuel option. Bio-butanol easily blends with gasoline due to its low vapor pressure. It has the potential to generate energy equivalent to gasoline and is non-corrosive in nature, owing to which it is considered to be of greater advantage compared to bio-ethanol.

Bio-butanol has applications in cleaner, adhesives, jet fuel, synthetic rubber, solvent in paints, bio-based plastics, and fibers. They are also expected to meet 20% of the demand for fuel, globally. Growing demand for clean energy, is the major factor that is expected to boost demand for bio-butanol. Bio-butanol exhibit polymer chain formation and blending properties, owing to which it finds its application in products such as acrylates, acetates, glycol ethers, solvents, and plasticizers.

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Bio-butanol Market Taxonomy

On the basis of raw material, the bio-butanol market is segmented into:
- Wheat
- Sugar beet
- Corn
- Straw
- Wood
- Others

On the basis of application, the bio-butanol market is segmented into:
- Acrylates
- Acetates
- Glycol Ethers
- Solvents
- Plasticizers
- Others

On the basis of end users, the bio-butanol market is segmented into:
- Petrochemical Industry
- Automobile Industry
- Aviation Industry
- Consumer Goods
- Textile Industry
- Others

Lack of availability of raw material is a major concern associated with bio-butanol preparation, which, in turn, increases the cost of the product, and this is expected to restrain the market growth. Bio butanol is used as a fuel for internal combustion engines in the petrochemical and automotive industry. Bio-butanol has the potential to reduce carbon emissions by 85% as compared to gasoline.

Bio-butanol Market Outlook

North America is expected to hold the largest market share, owing to low temperature weather in most of the countries of the region. Europe is the second-largest market, globally. Significant investment in R&D in these regions has resulted in alternatives for petroleum derived fuels.

Asia Pacific is expected to be the fastest growing market over the forecast period due to the rising population in the region, which in turn, is increasing the demand for cleaner fuel for transportation as well as greener paints and coatings to support the growing construction industry in the region. India and China are expected to be major growth engines due to growing aviation and transportation industries in the countries.

Key Developments

- In July 2018, SilicoLife (designs optimized microorganisms and novel pathways for industrial biotechnology applications) was awarded with SME instrument phase 1 grant for commercial evaluation of its BUTANOVA technology, a biological process for production of butanol. SME Instrument is a grant provided by the European Commission under the European Innovation Council pilot. The major objective of the new grant is to evaluate the new technology and a marketing strategy for the new cost competitive alternative for production of bio-butanol.

- In June 2018, Kreussler Inc. (a manufacturer of textile care products) entered into a partnership with Green Biologics Ltd. (a bio-based chemicals manufacturer) to launch new bio-based dry cleaning solvent SYSTEMK4. Green Biologics used its patented fermentation process to convert corn into bio-butanol used to produce SOLVONK4, main solvent in the SYSTEMK4 dry cleaning solvent.

- In 2017, Butamax Advanced Biofules LLC (JV between BP and DuPont) acquired Nesika Energy, LLC (manufacturer of bio-ethanol). Butamax started production of bio-butanol at Nesika's manufacturing facility located in Kansas (U.S.). The new facility helped Butamax to expand its production capacity of bio-butanol.

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Some of the key companies operating in the market include Bioenergy International, Butalco GmBH, Cobalt Biofuels, and Arbor Biofuels, backed by oil manufacturers such as TetraVitae Biosciences, and Metabolic Explorers.