Global biofuels production expected to double by 2019
Two growth areas, food production and the rapidly rising demand for biofuels, are moving fast ahead in global economy, despite many new challenges that keep appearing regularly.
Global biofuels production is expected to grow from 24 billion gallons in 2012 to 51 billion gallons by 2019 evidencing an impressive compound annual growth rate (CAGR) of 9.6% from 2013 to 2019.
Experts say the worldwide increased demand for phosphorus will in turn drive biofuels production forward.
Phosphorus, derived from phosphate rock, is the essential nutrient that crops –those used for food and biofuels production both – need to thrive and to increase yields.
While global demand for phosphate is growing rapidly, of particular note is the largest demand/supply disparity, found in South America.
Through 2018, phosphate demand growth on the continent is forecast to be one quarter of the total global growth in demand, while only 1.6% of world reserves are on the continent, which is a very real problem for a continent that is crop rich, but critically phosphate poor.
Companies such as Focus Ventures, which has acquired and drilled out a large new phosphate resource in Peru, are moving in to supply the phosphate-hungry markets.
Ralph Rushton, VP of corporate development at Focus, says: ‘The largest demand for phosphates in the foreseeable future is South America, putting Focus in an enviable position as it moves toward production. Focus anticipates selling its natural product into Latin America, focusing initially on local markets in Peru and Argentina and Brazil.’
South America is also investing heavily in biofuels and bioenergy, with Brazil at the forefront of new developments.