Report: World Biofuel Demand Will Continue to Skyrocket

John Davis

freedonia.jpgA study by the Freedonia Group Inc. says that demand for biofuels throughout the world will grow by 20 percent a year to 92 million metric tons in 2011.

This article from the International Business Times says the Cleveland-based industry research firm says the demand will increase despite the current food-versus-fuel and environmental debates:

Market expansion will come from a more than doubling of the world market for bioethanol, and even faster increases in global biodiesel demand, the study said.

Other biofuels will also experience strong growth, though much slower than either biodiesel or bioethanol.

The world market for biofuels has expanded rapidly in recent years as combination of domestic politics, rising oil prices, increasing concerns about global warming, and potential economic opportunity have spurred a broad range of countries to pass laws that support biofuel industries.

World biofuel production will track increases in demand as most countries seek to foster domestic biofuel industries, both to reduce reliance upon imported oil and to spur domestic economic development.

This will continue to favor the development of cereal based (maize and wheat) bioethanol capacity in North America and Western Europe, as well as sugarcane based bioethanol production in Latin America.

The article goes on to say in America, biodiesel production will center on soybean oil, while rapeseed oil will be the feedstock of choice in Europe. Asia and the Pacific region will feature palm oil with jatropha increasing in popularity. In addition, ethanol from cellulose and algae-based biodiesel will gain commercial significance in the long term.

Biodiesel, Ethanol, News