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Biofuel Production for Transport, Electricity, and Renewable Heat on the Rise, but Facing Challenges

According to the Medium Term Market Report put out by IEA (International Energy Agency), Biofuel production for the global market is expected to rise to 104 billion liters by the year 2020. However, the expectation is that the policy challenges affecting biofuel production and costs in the United States and Brazil will cause biofuel production in those countries to plateau in comparison to the rest of the global market. The report estimates that the gap in development in the highest biofuel producing nations will be made up by new production in non-OECD regions of Asia.

The brightest places in the industry are in the heating sector. Biofuel is seen as a promising piece of a diversified energy strategy for many power generation companies, and government policy in many countries supports the use of biofuels for heating as a part of a variety of renewable energy sources. Modern renewable energy sources are expected to 17.9 EJ in 2010, with 8.3 EJ represented by heating in buildings.

With the UN Global Climate Summit resolving in New York, there is hope that a renewed interest in policy that favors renewable energy sources will spur more growth and development in the renewable energy and biofuels sector. A shift in policy would also encourage development of more efficient production technologies that might create a new boom in the industry.

For more information on the challenges of biofuel production in Brazil, read the InduSoft whitepaper: Supervisory Software is Critical Component in Sugar Cane Processing Efficiency

Or read more about how one sugar processing plant in India is using InduSoft web Studio to power the plant and provide local energy.

Or see the InduSoft Web Studio Sugar Cane sample application in action:

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