Kline & Co. announced on Tuesday that it is launching a new study to examine the biodiesel boom and the ripple effect that it is having on the crude glycerin market. The study, Global Business Opportunities in Biodiesel Fuels, 2006-16, will provide a comprehensive analysis of the global market for biodiesel, including manufacturing cost economics such as the glycerin factor.
Manufacturers of synthetic glycerin have seen prices for their products plummet, driven down by an overabundance of glycerin on the market.
Glycerin prices have dropped by two-thirds in the last five years and are expected to drop even further, approaching zero, due to the biodiesel boom.
Glycerin is a key byproduct of the biodiesel production process and the growth in biodiesel production has flooded the market with natural glycerin. This surplus and the resulting low prices has left glycerin producers wondering just how low prices will go and how they will compete in the market.
Kline will launch the study next month, using 2006 as the base year for supply and demand data, with projections for 2011 and a forecast to the year 2016.