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Strategic Assessment of Alternative Fuels for Gensets in EuropePublished by: Frost & Sullivan Published: Jun. 18, 2009 - 60 Pages Table of Contents
AbstractThis Frost & Sullivan research service titled Strategic Assessment of Alternative Fuels for Gensets in Europe provides both, a geographic as well as a competitive analysis of the market. This research service reviews the most favourable technology in current use, provides a snapshot of select market participants and geographic trends across select member states. It also identifies the challenges in the industry along with the growth drivers and restraints. In this research, Frost & Sullivan's expert analysts thoroughly examine the following alternative fuels: biodiesel, biogas and fuel cells. The following application segments are covered in this research: agriculture, standby, and prime power.Market Overview Volatile Oil Prices Drive Demand for Alternative Fuels to Power Gensets in Europe Unpredictable oil prices and concerns over security of oil supply have made renewable sources of energy a more viable option globally, including Europe. Governments are now looking to alternative fuels - those derived from renewable or non-fossil sources - for their energy and power needs. Alternative fuels such as landfill gas, biogas, methane, mine gas, and bio-diesel are already being used in generator sets in the European Union (EU). The next novel alternative fuel will be fuel cell-based backup power that is likely to be commercialised by 2013. “The market for alternative fuels is dependent on oil prices,” says the analyst of this research. “The market grew at about 20 per cent during the oil price boom from 2006 to 2008, but has been on a decline since then because of volatile oil prices.” Over the last few years, the price of oil reached a high of about $147/barrel, plummeting to about $35/barrel in early 2009. However, this volatility in oil prices has proved to be a driver for alternative fuels, promoting growth in 2006, 2007 and early 2009. The price of oil is projected to rise in the future, which will create demand for alternatively fuelled products. In the face of unstable oil prices and at a time when the EU imports nearly 56 per cent of its energy, member states have taken a stance on adopting and promoting green electricity. In this context, gensets running on alternative fuels represent one of the many promising solutions; not only will the use of polluting fossil fuels be reduced to provide power, but waste can also be recycled through the use of biomass as a fuel to run gensets. R&D to Focus on Innovative Solutions and Less-polluting Fuels However, alternative fuels have slightly higher sulphur content than fossil-based fuels. Moreover, they contain aggressive particles, which cause internal parts of engines to deteriorate at a much faster rate. Extra filters are employed to help combat this issue and, in some cases, engines need to be derated. For instance, given a particular fuel, a 550kW engine may be derated to 450kW, which also increases the cost. “Since alternative fuel gensets are still in the early stages of commercial use, challenges are bound to arise,” states the analyst. “However, with prolonged use and greater market exposure, these problems are set to be successfully addressed.” R&D that helps prolong the life of the engine as well as keeps costs under control will facilitate greater penetration of alternative fuel gensets. This could lead to partnerships and collaborations between engine manufacturers, chemical companies and genset packagers. “To ensure a steady revenue flow and improved reliability while cutting down on costs, market participants should continue with R&D initiatives to find innovative solutions and less polluting fuels,” concludes the analyst. ”They should also focus on enhancing after-sales servicing, boosting process efficiency, and curbing production costs.” Get Full Details About This Report >> |
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