ExxonMobil and Renewable Energy Group Explore Potential to Manufacture Biodiesel using Microbial Fermentation

United States: ExxonMobil Research and Engineering Company, a research subsidiary of Exxon Mobil Corp., has entered into an agreement with a North America based biofuel manufacturer, that is, Renewable Energy Group, Inc. (REG) to conduct a research regarding biodiesel production from cellulosic sugars. The research by the two companies would focus on obtaining biodiesel from sugars using non-food sources, such as agricultural waste. REG already has a patented technology, which allows the conversion of sugars into biodiesel through a single step process, similar to that used to manufacture ethanol. Depending on the feasibility and advantages of the initial study, the two companies would expand the scale of this research accordingly. Both of the companies aim to commercialize the production process for obtaining low carbon and clean burning biofuels.

TechSci Research depicts that the research study conducted by ExxonMobil and Renewable Energy Group would lead to a breakthrough in reducing carbon emissions. This would even drive the demand for biodiesel, which could be used in its pure form or can also be blended with diesel as a fuel additive.

According to the recent report published by TechSci Research, “United States Fuel Additives Market Forecast and Opportunities, 2020”, US fuel additives market is expected to grow at the CAGR of 6% during 2015-20. The fuel additives market in the country is dominated by biofuels on account of rising demand for cleaner fuels and growing consumer preference towards fuel efficient vehicles. Diesel is the fastest growing application for biofuels in the US on account of stringent mandates on biofuel consumption issued by the EPA.