World biofuel production will boom - consultant

27 June 2007 16:44 [Source: ICIS news]

BEIJING (ICIS news)--Global ethanol production will rise to 90bn litres in 2010 from last year’s 50bn litres and biodiesel production will increase six times to 60 bn litres in 2020 from 10bn litres in 2006, a senior economist at a UK consultant said on Wednesday.

“Global production kept growing rapidly, around 10% a year, in resent years. Brazil, the EU and the US account for 80% of global output of ethanol and biodiesel,” said Simon Bentley, senior economist and head of starch and sweetener at LMC, at the China Biofuels & Ethanol Outlook Conference in Beijing.

Use of gasoline and diesel is the key driver of biofuel demand, which is growing fastest in the EU and US.

“Ethanol trade was growing, but will remain limited, due to high levels of government support for domestic producers. Hence, principal trade flows would be between large producers and countries with limited production potential, like Japan,” he said, adding that there may be important flows based on trade agreements.

EU demand for biofuels in fuel would be at 5.57% by 2010 and increase to 10% by 2020, he said.

The China Biofuels & Ethanol Outlook 07 Conference, which started on Wednesday and ends on Thursday, is organised by IBC Asia.

By: Rena Gu
+65 6780 4356

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