FAME is derived from oils and fats such as used cooking oils, soya oil, palm oil, rapeseed oil, sunflower oil, and animal fats. It is increasingly being used for the production of biodiesel. Some other applications of fatty acid methyl ester include paints and coatings, lubricants, agricultural products, and personal care products, among others.
FAME is manufactured from vegetable oils, animal fats, and cooking oils by the process of transesterification. In this process, a glyceride reacts with an alcohol in the presence of a catalyst to form a mixture of fatty acids esters and alcohol.
In terms of FAME demand by type, rapeseed methyl ester holds the largest share in the FAME market. The demand for rapeseed oil is increasing because it has 30-40% better oil content. Rapeseed oil produces high cetane number biodiesel which allows complete combustion and helps in lowering the emissions. This is due to the increasing use of rapeseed as the primary raw material for oil methyl ester production, as rapeseed has better oil content (30-37%) than other types of raw material used in manufacturing. Low profitability and weather conditions are expected to weigh on rapeseed planting and hence the rapeseed oil methyl ester. It can be used in pure form or may be mixed with petroleum diesel in most injection pump diesel engines.
In terms of the FAME market, the biodiesel segment is the major application of FAME. FAME is used as an alternative to diesel and gas oil for various automobiles and static engines. 7% FAME is used in the manufacture of pump diesel. The rise in the sale of passenger vehicles, modernization of vehicles, and greater demand for commercial vehicles to address demand from e-commerce and logistics support the growth of the industry.
The global FAME market is driven by the rising awareness for environmental concerns and an increasing shift toward sustainable solutions.
Initiatives taken by public and private organizations in the world to decrease dependency on fossil fuels will boost the FAME market in the forecast period. Efforts are being taken to adopt sustainable fuel sources such as biodiesel to meet energy demand while reducing carbon emissions.
Restriction on carbon emissions from vehicles and the adoption of cleaner fuels has increased the demand for FAME. Reducing oil supplies and the ability to ensure greater fuel security has increased the popularity of FAME.
Greater demand from developing nations, rise in industrialization, and growth in penetration of automobiles further boost the demand for FAME.
There has been increasing demand for fatty acid methyl ester for applications such as lubricants, paints & coatings, detergents & surfactants, agrochemicals, personal care & cosmetics, and others. Technological advancements and investments in research and development would encourage market players to develop new products and explore novel technologies.
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