The leaders of the American government and the US industries are encouraging all the efforts that may lead to the discovery of a viable alternative energy source such as production of biofuels based on algae.
This has become essential due to the looming gloomy future of petroleum fuel shortage, its ever increasing price, instability in market and climatic changes due to greenhouse gas emissions. Some of the encouraging factors of algae, such as its increased yield capability of over 20 times when compared to other oil seeds plants and its quantifiable production are drawing attention of leading industries who are preparing to plunge and to use the growing demand productively. The other advantages of algae include its capability to grow in non-cultivable land utilizing waste water and saline water.
A new research report from Pike Research named ‘Algae-Based Biofuels’ indicates that the algae biofuel output will witness a tremendous growth in the next decade resulting in the manufacture of over 61 million gallons of fuel per year with an estimated market value of $1.3 billion by 2020 and a probable compound annual growth rate (CAGR) of 72%. According to Clint Wheelock, President of Pike Research, algae industry is still at its early stage and is yet to start full-fledged commercial production. He explained that the industry will achieve its quicker pace once it clears the initial hiccups such as getting private investment, getting the required algae substances and water availability for growing them. He has also mentioned about the current efforts of most of the companies involved in the production and their concentrated efforts in manufacturing low volume but costly by-products to generate income in the long run.
The report expects the US with the available pilot and demo scale facilities to lead the production earlier than other countries. It clarifies that most of the European Union algae activities are confined to researches in the universities due to the problems in reaching water, nutrients and land for large scale algae production. The report anticipates that the Asia pacific and Latin American countries which have already made significant attempts with limited number of projects will benefit in achieving considerable share of the algae biofuel market in the long run. The report offers details on comparative advantages and disadvantages of the technologies involved in algae production and its ultimate end-market t chances. The report also includes market forecasts for a 10 year period on various segments all over the world with details of important countries and industrial players who may play a role in influencing the biofuel business markets.