According to a new report released by Report Buyer, by the year 2015, the biofuel market across the world will reach US$ 61.5 billion. The report, Biofuels - A Global Market Overview, projects that the market for biofuels will grow 12.9% CAGR from 2006 to 2015.
The demand for biofuels has grown significantly in the European Union and the United States. The European Union is planning to step up its annual biofuel production to approximately 10% of its liquid fuels by the year 2020. A challenging target has set by the United States to manufacture approximately 8 billion gallons per annum by 2012 and reach 40 billion gallons by the year 2022.
Many challenges are being faced by energy companies that are seeking to broaden their energy portfolios to include biofuels. Some of the challenges include regulatory approvals, regulations, fuel types to be used, increase in prices of food due to diversion of food crops for biofuel production, and increase in land usage for raising biofuel crops.