Demand for biofuels is expect to increase by an estimated 20% through 2011 according to Reportlinker.com’s new market research report. The report states that the global demand for the alternative fuel will hit about 90 million tons in the next three years with the market for bioethanol doubling. Biodiesel will also see a huge jump in growth.
Reportlinker.com’s report attributed the growth in the biofuels market to a combination of things including domestic politics, rising oil prices, increasing concerns about global warming, and potential economic opportunities. These factors have led to a rash of countries passing laws to support biofuel industries.
Despite the expected increase in demand for biofuels, the fuel does have some detractors as questions arise about the wisdom of using biofuels as an alternative energy source. Some analysts say that biofuels will have an impact on world food supplies in the short term. However, still under debate by the analytic community is the potential negative impacts of biofuels on the environment and longer term consequences.