Biofuel has become one of the most talked off renewable energy source worldwide. There has been a dramatic growth in the production & use of biofuels across the globe. Surge in investments in biofuel production has, primarily, been driven by various factors. A few of these factors include development of efficient conversion technologies, introduction of strong new government policies and most importantly rising prices of oil. Current surge in oil prices and concern about effects of greenhouse gas emissions have prompted both developed and developing countries to look for commercializing biofuel avenues. Also, developing countries find biofuel as a means to stimulate rural development, save foreign exchange and create jobs. Today, Brazil and US are the two largest biofuel markets in the world. After the decline in the demand for ethanol, new flex-fuel vehicles are now revitalizing its sale in Brazil. Despite growing continuously, global biodiesel market is much smaller in size. High cost of biodiesel production makes ethanol a better choice from commercial viability's point of view. Especially in a country like Brazil, where the cost of ethanol is lower & already competitive with petroleum motor fuels. To conclude, the cost of biofuels production is higher compared to fossil fuels, even with high barrel price reducing this gap. Besides providing a better choice to petroleum fuels for the transport sector, biofuels also make up a better and environment friendly option. To get further information on world biofuel market you can read the report "Biofuel Market Worldwide (2006)" available at http://www.rncos.com/Report/IM043.htm. RNCOS is a leader in the field of online business research and specializes in industry research on various business verticals. To read our other reports, please visit us at http://www.rncos.com/Report.htm or email us at info@rncos.com
Source: http://www.ArticlePros.com/author.php?James Marriot
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