Frost: Expect Spectacular Growth of Green Energy Market
August 10, 2007 // Published as a news service by IHS
Over the last few years, eco-industries in the European Union (EU) have grown to such an extent that they are now a prominent force across the entire European economy, representing about 2.1% of its gross domestic product (GDP) and 3.5 million jobs.
According to analysts, this market is expanding at an extraordinary rate, both in Europe and globally, with revenues set to double, triple or increase even more over the next few years.
Biodiesel
Biodiesel is one of the fastest-growing areas in the chemical industry and in the green energy sector. Last year in Europe, 3.89 million tonnes of biodiesel were consumed, generating revenues of €2.93 billion.
Analysts said by 2013, the total EU biodiesel market is expected to reach 9.75 million tonnes in terms of unit shipments, while revenues are forecast to be €7.46 billion, based on current biodiesel market prices. The average growth over the forecast period will be 14%.
Renewable Energy
Analysts found the European renewable energy market earned €8.89 billion in 2005, with estimates to reach €14.54 billion in 2010. In China, the government feels there is an urgent need to take action and is stepping up efforts to accelerate the development of clean energy.
According to Frost & Sullivan, Chinese renewable energy markets earned revenues of $6.9 billion in 2006, with estimates to reach $17.9 billion by 2013. Within the market, solar photovoltaic (PV) will be one of the fastest growing renewable energy sources in China until 2013, with its growth exceeding wind power. The biomass power industry has great revenue potential, not only because of sufficient government funding, but also due to adequate availability of feedstock fuels.
Green Buildings
Buildings are responsible for 40% of Europe's total carbon dioxide (CO2) emissions. Climate change is the EU's top priority, according to the European Commission (EC), and member states are committed to cutting down on CO2 emissions to meet the Kyoto Protocol targets.
Despite all their efforts, a significant proportion of member states' energy is wasted by inefficiency. Analysts said if the EU is to achieve its targets, reducing energy use in all buildings is essential.
If more stringent standards are applied to new buildings and renovations, the EU will achieve a significant cut in greenhouse gas (GHG) emissions. Unfortunately, any efforts will be in vain if they are not accompanied by a change in consumer behavior.
Hybrid Vehicles
Reducing emissions below 140 grams per kilometer (g/km) of CO2 will be possible mainly with the help of alternative fuels and hybrids (micro, mild and full). While original equipment manufacturers (OEMs) are aware of this fact, further development and market acceptance of these alternative fuels and hybrids is restrained by the distribution network, availability and high implementation costs.
Analysts said while advancements in engine technology helped reduce emissions to an average of 160 g/km, hybrids, ethanol, biofuels, compressed natural gas (CNG), hydrogen and fuel cells are necessary to reduce them further. The main priority of OEMs today is to reduce emissions, which will require the help of local governments and fuel suppliers to promote alternative fuels and hybrids in a cost-effective manner.
Waste Management and Recycling
Analysts said an estimated 1.3 billion tonnes of waste is generated annually in the EU, and this continues to rise. The overall volume of waste is growing at rates proportional to the economic growth rate of the EU's 25 member states (EU-25). Among the various streams of waste generated, management of hazardous and municipal waste alone costs the EU an estimated €75 billion annually, translating into huge revenues for the waste management and recycling industry.
Source: Frost & Sullivan.