Global biofuel production growth to decline

Global biofuel output is expected to grow during the period up until 2023, fuelled by a surge in demand, increased crude oil prices and government policies.

The rise however, is expected to be lower than in the past decade.

In a joint report, the UN Food and Agriculture Organisation (FAO) and the Organisation for Economic Cooperation and Development (OECD) expect ethanol and biodiesel output to reach 158 billion litres and 40 billion litres by 2023.

'Biofuel production will expand substantially, with both ethanol and biodiesel production increasing by more than 50 percent through the next decade,' the report states. 'This represents a significant slowdown relative to the past decade, when production more than doubled through the ten year period from 2004 to 2013.'

OECD and FAO believe this trend will continue with 12% world coarse grains, 28% sugarcane and 14% vegetable oil, expected to be used to make biofuels by 2023.