The Biofuels Industry is Growing at a Rate of 25 to 50 percent Each Year

DUBLIN, Ireland--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/reports/c43907) has announced the addition of the First Research report: Biofuels Production - Industry Profile to their offering.

The biofuels industry in the US includes about 200 companies with combined annual revenue of about $3 billion. Major companies include Archer Daniels Midland, Cargill, BP, and Chevron. Most companies in the industry are small (under $10 million in revenue). Biofuels is a young industry growing at a rate of 25 to 50 percent each year. New entrants enter the field constantly and new technology breakthroughs are frequent. Federal and state government subsidies and loan guanrantees keep barriers to entry relatively low.

COMPETITIVE LANDSCAPE

Demand is driven by federal legislation and regulations that establish a government-mandated market for biofuels. The profitability of biofuel production facilities depends on prices of gas and diesel, which fluctuate based on world petroleum demand and domestic refinery utilization. Economies of scale in ethanol production are limited due to the transportation costs associated with gathering feedstocks (corn and other biomasses) and transporting the ethanol to blending sites. As a result, large companies operate multiple production facilities. Small companies can compete effectively by developing business relations with distributors and being able to assure delivery consistently. Revenue per employee in ethanol production facilities is about $1 million per year.

PRODUCTS, OPERATIONS & TECHNOLOGY

The major products of the biofuels industry are ethanol and biodiesel. Ethanol makes up over 90 percent of current US biofuels production of about 4 billion gallons per year.

Ethanol production requires corn or other high-starch grains, water, chemicals, enzymes and yeast, and denaturants such as unleaded gas. In the dry milling process (used for about ...

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Topics Covered

Industry Overview

Quarterly Industry Update

Business Challenges

Trends and Opportunities

Call Preparation Questions

Financial Information

Website and Media Links

Glossary of Acronyms

Companies Mentioned

-- Archer Daniels Midland

-- Cargill

-- BP

-- Chevron

For more information visit http://www.researchandmarkets.com/reports/c43907