The International Energy Agency is forecasting that global biofuel output will double from 2006 levels to 1.75 million barrels a day in 2012.
According to a Dow Jones newswire report, the agency included its second annual report on biofuels in its medium-term oil market report through to 2012, released on Monday.
IEA also raised its 2006 biofuel supply baseline by 79,000 barrels a day to 863,000 barrels a day due to stronger-than-expected growth and more detailed capture of projects. Still the agency warned while the forecasts showed a “considerable rate of growth” for global biofuel production they were significantly below capacity planned for 2012. IEA says it maintained a cautious biofuels stance because high feedstock prices raised doubts over economic viability.
“Many projects…will not see the light of day,” says IEA, adding current economics mostly favors use of feedstocks such as corn, sugar, soybeans, wheat and palm oil for food over fuel. Technology for significant production of biofuels from other feedstocks isn’t expected by the IEA to come into play by end of the 2012 outlook period.