Global biofuel production increased by 17% in 2010

World Outlook Research Institute released an analysis report on the implementation of climate and energy projects on August 31, 2011. In 2010, global biofuel production increased by 17% to a new high of 105 billion liters (28 billion US gallons), compared with 90 billion liters in 2009 ( United States 24 billion US gallons). Figure 1 shows the world ethanol and biodiesel production from 1975 to 2010.

High oil prices, a rebound in the global economy, and new laws were imposed in Argentina, Brazil, Canada, China, and the United States, all of which contributed to a surge in biofuel production. The report pointed out that biofuels provided 2.7% of all fuels used for road transport worldwide, an increase from 2% in 2009. The two types of biofuels used as substitutes for fossil fuels are ethanol and biodiesel. In 2010, the world produced 86 billion liters of ethanol (23 billion US gallons), which is 18% higher than in 2009. The world's biodiesel production rose to 19 billion liters (50 billion US gallons) in 2010, which is 12% higher than in 2009.

The United States and Brazil are still the two largest ethanol producers. In 2010, the United States produced 49 billion liters (13 billion US gallons), which accounted for 57% of the world's total production; Brazil produced 28 billion liters (7 billion US gallons), which accounted for 33% of global production. Cereals are the main raw material for ethanol in the United States. In Brazil, sugar cane is the main source of ethanol.

In the United States, record production of biofuels is partly attributable to high oil prices, which has encouraged several large fuel companies, including Sunoco, Valero, Flint Hills, and Murphy Oil, to enter the ethanol industry.

High oil prices have also become a factor in Brazil, with one in every three car owners using flexible fuel vehicles and flexible fuel vehicles using fossil or bio-based fuels.

Although the United States and Brazil are the world's leading countries in ethanol, the largest producer of biodiesel is still the European Union. In 2010, the EU produced 53% of all biodiesel.

However, some countries in Europe may switch from biodiesel to ethanol because a recent report from the European Commission pointed out that ethanol crops have a higher energy content than biodiesel crops, which makes it a more efficient fuel source.

In Argentina, the growth of the biodiesel industry is not only due to the favorable conditions for growing soybeans, but also to the new B7 blending directive, which requires that fuel should be 7% biodiesel and 93% diesel blended oil. As a result, Argentina’s biodiesel production facilities have invested heavily to increase production.

However, in the United States, the Environmental Protection Agency (EPA) has made a decision to significantly reduce the country's cellulosic ethanol production target. Cellulose ethanol is a biofuel produced from woody crops or crop waste, and is related to traditional ethanol. In contrast, converting to ethanol has a much higher efficiency, which can reduce related greenhouse gas emissions. The reduction in the EPA's goals reflects the technical challenges and costly difficulties of commercializing the so-called second-generation biofuels. According to the original requirements for the 2007 Energy Independence and Security Act of 950 million litres, it is now being replaced, and the ultimate goal will be a much smaller 25 million liters.