The leading market research consulting services company RNCOS has recently released an exhaustive report “Biofuel Market Worldwide (2007-2010)” to present a rational analysis of the global Biofuel market. The report expects the biofuel market to grow at a CAGR of 13% by the end of the year 2010.

According to the report, the primary reason for the increased global attention towards the renewable energy sources is the declining oil production from nearly all the oil reserves. Besides, environmental issues and increasing energy utilization has further raised the focus towards the utilization of biofuel.

The demand for biofuel is more in the countries that emits toxic gases in a much higher percentage, thus adding to global warming. For instance, in USA, the transportation sector is accountable for more than 70% of the petroleum consumed and one-third of carbon dioxide emissions, with similar statistics in Europe.

The study identifies other factors also that are stimulating the global biofuel market to grow. Biofuel offers security to ecosystem and soil, provides air benefits, reduces waste, aids in rural economic development, cuts down the greenhouse gas emissions and also helps in preserving the supply-security of energy consuming nations. All these factors have led to increased acceptance of biofuel worldwide.

 

However, the worldwide biofuel boom has been met with certain apprehensions by the critics who are expressing their concern regarding the environmental sustainability and commercial applicability of this technology. The concerns indicate towards the prospective environmental and social costs of biofuels and its effect on the increased food prices on the global poor. Though some of these fears might be mitigated by the development of cellulosic ethanol, but these have made further investment and research on biofuels obligatory.