World biofuels production will reach 42.6 billion gallons

PIRA Energy Group, which specialises in global energy market research and intelligence, has released the World Biofuels Forecast, an analysis of the world market.

The paper states that world biofuels production is forecast to reach 42.6 billion gallons per year by 2025, with ethanol accounting for approximately three quarters of the output.

Ethanol is projected to account for 7.8% of petrol consumption by 2025 as it gains market share, while biodiesel is projected to increase to 3.3% of diesel consumption.

Growth, however, will be slowed by lower petroleum prices, limits in motor fuels use, 'blendwall issues', food versus fuel debates, and difficulties in developing second generation technology.

It emphasises that the US Renewable Fuel Standard is unworkable and needs to be modified; motor fuel use did not and will not increase as much as anticipated when the law was originally enacted.