The outlook for the biofuels market remains very positive in the 10 to 15 year time frame according to a report released by Pike Research today (15th June). The report, 'Biofuels Markets and Technologies' suggests that, despite significant current challenges, the combined biodiesel and ethanol markets will reach $247 billion in sales by 2020, up from just $76 billion in 2010.

"In the near term, the biofuels market looks like a train wreck," says Pike's managing director Clint Wheelock.  "The economics of ethanol and biodiesel are not yet competitive with petro fuels, and governments have pulled back some of their support.  However, in the 10 to 15 year timeframe, the outlook remains very positive.  The long-term commitment of national governments to foster robust biofuels markets remains solid, and technological advances and economies of scale will dramatically improve the economics of biofuels versus petroleum."

The report forecasts three key waves of next generation biodiesel over the next several years.  Fuels based on waste greases will hit the market first in 2010.  Jatropha-based fuels will begin having a significant impact on the market in 2014.  The third big wave will be algae-based biodiesel, which will achieve commercial availability in 2012 and will have a deeper effect on the market beginning in 2016.