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Renewable Naphtha Market: Introduction

After the commercialization of oil, it not only provided the world with new forms of usable energy, but also delivered feedstock, which helped the modern chemicals industry to become profitable in the global market. Naphtha is a flammable liquid made from a petroleum hydrocarbon mixture. The use of conventional naphtha has enabled improve combustion, and has its application in various end-use application. However, with the advancements in technology, conventional naphtha was considered to be one of the main reasons for air pollution around the globe. Thus, other forms of efficient fuels such as gasoline, natural gas, renewable naphtha, etc., have replaced the use of naphtha in end-use industries.

Renewable naphtha is a co-product of renewable diesel, and is 100% hydrocarbon gasoline blend stock. Renewable naphtha is derived from oils and fats, which reduces harmful emissions as compared to petroleum-based naphtha. The properties of renewable naphtha such as sulfur-free, virtually aromatics-free, and highly pure makes it suitable for several applications in all the end-use industries in the global market. Renewable naphtha has a higher energy density as compared to ethanol, making it more suitable for application as a bio-based fuel component in mixing, even in racing and specialty fuels. Renewable naphtha can be also be used as a feedstock for the production of renewable chemicals and bio-plastics.

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Renewable Naphtha Market Dynamics

Strategic positioning in regional as well as national markets and business lines is the key to succeed for renewable naphtha manufacturers. By establishing a strong position in the regional markets and businesses, prominent market participants could decrease the price pressure created by regional players, which, in turn, would help them increase their profitability and also growth opportunities in the global renewable naphtha market. The growth in the automotive and transportation sectors has severely depleted non-renewable petroleum reserves, causing fuel prices to increase. This rise is expected to be exponential in the coming years, as crude oil reserves will become less, leading to higher demand and paving the way for the growth of vehicles running on alternate sources of energy such as renewable naphtha. Renewable Naptha’s prominent benefits such as reusability, virtually aromatics-free, colorless, and odorless are projected to create lucrative growth opportunities for the global renewable naphtha market over the forecast period.

The renewable naphtha market is estimated to grow, since regulatory authorities in charge of pollution norms and regulations are putting out strict rules on the manufacturing and use of these conventional fuels so as to reduce the amount of air pollutants in the environment. This factor is estimated to boost the demand for renewable naphtha over the coming years. The renewable naphtha market has a lot of scope in the research and development division, since researchers and the scientists are coming up with new chemicals and by-products made from renewable naphtha that are more efficient and economical. The market for renewable naphtha is anticipated to grow at a healthy CAGR in the coming future. Furthermore, the growing applications of steam produced by boilers in commercial and industrial sectors is expected to propel the growth of the renewable naphtha market in the near future.

Renewable Naphtha Market Segmentation

The renewable naphtha market can be segmented on the basis of chemical type and application.

By Grade, the Renewable Naphtha Market can be segmented into:

  • Fuel Grade
  • Industrial Grade

By Application, the Renewable Naphtha Market can be segmented into:

  • Chemical
  • Energy & Fuel
  • Bio-plastics

Renewable Naphtha: Regional Outlook

The renewable naphtha market can be divided into seven different geographical regions/divisions — North America, Latin America, Western and Eastern Europe, China, South East Asia & Pacific, and Middle East and Africa. North Americas and European countries have the presence of all industrial and commercial sectors alongside the existence of globally prominent players, which is a boon for the renewable naphtha market in these regions. Rapid industrialization in the Asia Pacific region, especially in China and India, is estimated to fuel the growth of the renewable naphtha market. The use of renewable naphtha in industrial applications is becoming easier and more economical, owing to new inventions and advances being made in technology. Therefore, it is expected that, the renewable naphtha market will see rapid growth in all the developed and developing countries in the future.

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Renewable Naphtha: Market Participants

Some of the market participants in the renewable naphtha market areNeste, Renewable Energy Group, Inc., UPM Biofuels, Honeywell UOP andSunshine Biofuels, among others.

The research report on renewable naphtha presents a comprehensive assessment of the market, and contains thoughtful insights, facts, historical data, and statistically supported and industry-validated market data. The renewable naphtha report also contains projections using a suitable set of assumptions and methodologies. The renewable naphtha research report provides analysis and information according to market segments such as geography, application, and chemical type.