Market demand for ethanol and biodiesel

Estimates of global potential for biomass that can be converted into fuels vary widely. One recent study concluded that by 2050, biomass theoretically could supply 65% of the world’s current energy consumption, with sub-Saharan Africa, the Caribbean, and Latin America accounting for roughly half of this global potential. In tropical countries, high crop yields and lower costs for land and labor provide an economic advantage that is hard for countries in temperate regions to match.

The potential market demand for ethanol and biodiesel also varies widely. While gasoline commands a much larger share of the market in the U.S. than diesel, diesel dominates in Europe and is often the preferred fuel for vehicles in developing countries.

Liquid biofuels are renewable energy sources of biological origin. Biodiesel is a prominent liquid biofuel. Other liquid biofuels include bioethanol, biomethanol, and pyrolysis oil. All biofuels are extracted by chemical processing from agricultural stocks.

Liquid biofuel has been gaining economic and political influence in recent years. This is due to certain independent external factors. Conventional mineral oil supply is dependent upon a number of political factors. The factors were starkly pointed out by global mineral oil shortages during the Gulf War. The impetus towards biofuel research was further given a boost by agricultural product surplus in the same time-period.

Liquid biofuel is generally extracted from non-food agricultural produce. Rapeseed is the source material of choice. More than 80% of biofuel production is extracted from the rapeseed plant. Soybean is also another major source of the ecologically friendly fuel. It is the primary source for commercial biodiesel production. Sunflower is also used. The list of minor sources include linseed, palm and beef tallow.