Despite Obstacles, Biofuels Continue Surge

World production of biofuels rose some 20 percent to an estimated 54 billion liters in 2007.¹ (See Figure 1.) These gains meant biofuels accounted for 1.5 percent of the global supply of liquid fuels, up just 0.25 percent from the previous year.²

Global production of fuel ethanol—derived primarily from sugar or starch crops—increased 18 percent to 46 billion liters in 2007, marking the sixth consecutive year of double-digit growth.³ Production of biodiesel—made from feedstock such as soy, rape and mustard seed, and palm and waste vegetable oils—rose an estimated 33 percent, to 8 billion liters.⁴

The United States, which produces ethanol primarily from corn, and Brazil, which primarily uses sugarcane, account for 95 percent of the world’s ethanol production.⁵ (See Figure 2.) Brazil increased its ethanol production by 21 per­cent in 2007, to 19 billion liters.⁶ But the United States continued to widen its lead over Brazil as the world’s leading producer by boosting output 33 percent to 24.5 billion liters in 2007.⁷