Global Biofuel Boom in 2010 with Output up 17% 01 September 2011
The global production of biofuel increased to 105 billion litres in 2010, up 17% from the 90 billion litres achieved in 2009, according to Vital Signs, a report from Worldwatch Institute. Production was primarily of ethanol, which accounted for 86 billion litres while biodiesel accounted for 19 billion litres, up 18% and 12% respectively.
The world's top ethanol producer was the US, turning out 49 billion litres or 57% of the world's total. Brazil took second place with 28 billion litres. US output increased by 8.4 billion litres last year principally from corn. Because of some production problems in Brazil, the US became a net ethanol exporter in 2010 sending 1.3 billion litres abroad.
Brazil, which used sugarcane as its ethanol feedstock, increased output by 2 billion litres, an improvement over 2009 when production fell. Ethanol increases were driven by pureplay refiners in the US such as Valero Energy and Sunoco, which invested strongly in the resource. Worldwatch's report, issued on 30 August, predicted ethanol demand for corn would lead the sector to become the top consumer of the crop in 2011, which s likely to draw attention to continued subsidies for the fuel. The US Environmental Protection Agency (EPA) cut its targets for cellulosic biofuel for 2011 from 950 million litres, set in 2007 under the Energy and Independence Security Act, to 25 million litres.
Biodiesel:
While the Americas dominated ethanol production, the European Union was the world's centre for biodiesel output, accounting for 53% of the global total. However, growth slowed in 2010 to 2% down from 19% in 2009. The world's top biodiesel producer is Germany, accounting for 2.9 billion litres in 2010, a 12% increase. Competition in the biodiesel sector led the level of imports to the EU to increase, with local capacity accounting for only 40% of demand.
The Worldwatch report suggested, though, that Europe might prove to be a growth market for ethanol consumption as a result of European Commission concerns on the indirect land use impact of biodiesel. Ethanol may also have lower greenhouse gas emissions than biodiesel.