Biofuels – on the way up?
World fuel ethanol and biodiesel demand increased steadily from 2008 to 2011, with world ethanol demand being 3.8 x higher than biodiesel in 2010 and around 3 x higher at the end of 2011. The IEA forecast for 2016 is that biofuels production will increase by over 28% from the 2010 figures.
The IEA also forecast that by 2016:
- Ethanol will displace 5.3% of total gasoline demand
- Biodiesel will displace 1.5% of total diesel demand
- Ethanol production will be 3.8-3.9 x higher than biodiesel
But what impact will increased biofuel use have on food and feed prices and does biofuel crop production present a significant investment opportunity itself?
Find out what Claudiu Covrig, PhD, Biofuels Market Research Analyst at Kingsman thinks – download his presentation from the 2011 Agriculture Investment Summit Europe.
at 9:55 am
Lucrative plan! As we are already facing the trouble of natural resources then it’ll create more crucial situation in future so we have to think the alternate from now and adopting the ‘bio’ theme is very effective to do that. Thanks for an informative article!
at 2:40 pm
I agree, I think we’ll find that moving forward, resorting to using bio fuel is almost unavoidable. This article illustrates the impact of this change very clearly.
at 8:59 am
Agreed – peak oil theory is no longer a theory. It is a matter of when.
Investments into bio-diesel and ethanol production infrastructure now, will more than likely increase in value five fold over a 5 year horizon.
Mozambique – Zambezia province has the land, the water, the climate, farmers ready to move in and generous tax incentives (effective tax rate 6.5%), although the window of opportunity is limited.