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GSR 2015

44 02 MARKET AND INDUSTRY TRENDS half of this capacity (almost 3.9 GW) and for annual electricity generation from biogas of around 29 TWh, followed by Italy (1,391 plants), Switzerland (620), and France (610).53 Brazil’s bio-power sector has seen continuous market growth. An estimated 1.49 GW of new capacity brought Brazil’s total to 12.3 GW in 2014.54 Electricity production from biomass—primarily sugarcane bagasse and black liquor—in thermoelectric plants remained stable at 7.6% of Brazil’s total electricity generation.55 In addition, 22 grid-connected biogas plants (mostly at landfills) generated electricity in 2014.56 Policies that require local utility service providers to obtain at least 2 GW of new renewable capacity through auctions annually between 2007 and 2017 have not been favourable to biomass because most providers have opted instead for wind power installations that receive government incentives.57 There is also some modest bio-power production in Africa. All sugarcane mills produce electricity from bagasse in co- generation facilities for their own use, while some—including mills in Ethiopia, Kenya, Mauritius, Sierra Leone, Sudan, and Uganda—sell excess electricity into the national grid.58 Some pilot installations were installed in 2014, including a waste-to- energy plant in Nigeria.59 Transport Biofuel Markets Global biofuel production increased 9% in 2014, to a total of 127.7 billion litres, with each type of biofuel reaching its highest level to date. Fuel ethanol accounted for 74% of the total, biodiesel largely from fatty acid methyl ester (FAME) for 23%, and hydrotreated vegetable oil (HVO) for limited but increasing quantities.60 (pSee Figure 9.) The top countries for total production of biofuels were the United States, Brazil, Germany, China, and Argentina.61 (RSee Reference Table R4.) Global fuel ethanol production was up 7% to 94 billion litres.62 The increase was due largely to good corn and sugarcane harvests and low crude oil prices, all of which kept production costs low. The United States accounted for 58% of ethanol production, followed by Brazil (28%), China (3%), Canada (2%), and Thailand (1%); the European Union accounted for 6% of global production, led by France and Germany.63 US fuel ethanol production increased 8% to 54 billion litres, following two years of decline.64 By the end 2014, nearly 100 fuel stations in 16 states sold the blend E15 (15% fuel ethanol and 85% petrol), and vehicle manufacturers were specifying increasingly that their vehicles were compatible with ethanol blends up to 15%.65 To the north, Canada saw marginal increases in production that have been attributed to improved operational efficiency because domestic production capacity was not expanded.66 Production in Brazil was up 4% to 27 billion litres, nearly 88% of which was consumed domestically.67 Brazil’s 25% blend mandate was increased to E27 in early 2015.68 (RSee Reference Table R18.) China’s production increased 5% in 2014, for a total of almost 3 billion litres.69 Ethanol blending in China ranges from 8% to 12%.70 In Thailand, production of fuel ethanol is being driven by government subsidies that make ethanol blends (of 12–40%) cheaper than other petrol, as well as an increasing number of fuel stations that sell E20 and E85 blends.71 Some other Asian countries experienced rapid growth during 2014, although from low levels: for example, production increased 67% in the Philippines and 46% in India.72 Europe also saw a significant expansion in 2014, with ethanol production up 13% over 2013 to 5.2 billion litres.73 Most of the increase occurred in Belgium (up 22%) and the Netherlands (35%).74 Australia was one of the few countries to see a decrease in fuel ethanol production in 2014. Production declined 16% relative to 2013 as motorists shifted from E10 to higher octane grades of petrol.75 Although production levels remain small, several countries in Africa support blends of roughly 10%, including Ethiopia (E10), Kenya (10%), Malawi (varying between 10% and 20%), and Zimbabwe (varying between 5% and 15%).76 Global production of biodiesel (most of which is FAME) increased 13% to 30 billion litres.77 The top producers were the United States, which accounted for 16% of the global total, Brazil and Germany (both with 11%), Indonesia (10%), and Argentina (9.7%). Europe accounted for 39% of global biodiesel production in 2014.78 Europe produced 11.5 billion litres of biodiesel, up 9% relative to 2013.79 US production (FAME) fell 5% relative to 2013, to 4.7 billion litres, due to policy uncertainty.80 US production and consumption of HVO also were up, although still at very low volumes.81

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