Biofuels

Today’s world is increasingly defined by two inter-related trends: Growing global energy demand and heightened concerns over carbon emissions. By 2050, global crude oil consumption is projected to more than double and oil from proven conventional sources will be insufficient to meet projected global demand.

The rise in standards of living in China and India, in addition to continued high fuel consumption in the US and EU, underscores the need for additional fuel energy sources to satisfy ever-growing demand. Concerns about carbon emissions and their potential contribution to global climate change heightens the need for renewable and low-emission sources of fuel. The largest use of oil, transportation, is also one of the most significant sources of carbon emissions.

Traditional energy solutions have relied on conventional fuels to satisfy the energy needs of modern society. Conventional fuels, primarily fossil fuels comprised of oil and gas, has been primary energy sources for more than a century, generating trillions of dollars of market value. Current conventional fuel consumption is approximately 85 million barrels per day and is projected to grow to more than 140 million barrels per day over the next twenty years.

The vast majority of conventional oil is concentrated in areas with geo-political instability. Yet our energy needs continue to grow.

The world needs a fuel source that is renewable, compatible with existing energy and transportation infrastructure, is scalable to meet future demand and has low net emissions, and is not dependant on unstable geo-political regions.

Renewable fuels offer a unique opportunity to meet the increasing demand for fuel energy. Renewable fuels are all bio-fuels, including ethanol and biodiesel, that can be produced from renewable sources. Both ethanol and biodiesel are produced through a variety of feed-stocks, with new cellulosic ethanol technology enabling the use of inexpensive, non-food energy sources.

The current production of Biofuels is about one million barrels per day and constitutes approximately 1% of global petroleum based oil production. The Renewable fuels industry is one of the fastest growth sectors across all industry segments.

A combination of factors is driving the Renewable fuels industry, including: increasing demand for oil, constraints on oil supply, greenhouse gas emissions concerns and increasing air quality standards. The projected growth of Renewable fuels to 20 million barrels per day worldwide would result in the creation of annual revenues in excess of $600 billion and a combined market value in excess of $1 trillion.

The Biofuels market is in a period of explosive growth. This growth is driven by sustained high price of oil, government incentives, energy security and a global desire for cleaner and renewable fuels. AE Biofuels is uniquely positioned to address these challenges.