The biofuels market is expecting consumption levels to reach 135 billion gallons by 2018 as the industry is set to double in value over the next decade, rising from a valuation of $82.7 billion in 2011 to be worth a market value of $185.3 billion in 2021.
Biofuels are fast growing to become a prominent alternative energy resource, with the market being predominantly driven by the increasing in environmental concerns regarding the usage of fossil fuels. Furthermore, limited fossil fuel resources, the complete dependence on oil exporting countries for supply, and the increase in energy prices are additional factors expected to fuel growth within the biofuels market.
Even with this rapid growth, however, significant hurdles remain which could prevent the biofuel industry from meeting government mandates.
Though biofuels hold a very small share of the overall energy source industry, these alternative fuels are expected to hold much better position over the coming years in the form of clean alternatives to fossil fuels. Development of biofuel projects is underway in many countries across the globe owing to several benefits offered by these alternative fuels over fossil fuels.
In particular, a trio of biofuel technologies are set to storm the market. Biofuels derived from waste grease collected at restaurants and boiled down from animal wastes, among other places, were set to start hitting the market in 2010. Biofuels extracted from jatropha, a prolific weed that has far better production economics than sugar cane or corn (the two prevalent fuel stocks for ethanol at present), will enter the market in 2014. But the biggest part of the new comers could come from the entry of algae-based biofuels, which can closely mimic traditional petroleum products.
A number of heavy hitters are betting on these technologies, including genetics genius Craig Venter and oil giants Exxon Mobil and Royal Dutch Shell.
The United States represents the largest biofuel consumer worldwide. The emerging market for advanced biofuels in the US continues to attract policy makers and investors. Leading players in the industry continue to make investments towards technological developments and setting up of production facilities.
For more information on the biofuels market, see the latest research:Biofuels Market
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