Global prospects for the biofuels industry

The rapidly rising cost of oil and growing concern about global warming have dramatically increased the prospects for significant commercial biofuel production. Optimistically, biofuels could replace petroleum as the major transportation fuel within the next 2 decades. However, technical advances must be made to make bioethanol and biodiesel economically viable and sustainable replacements for petroleum. As a consequence, large investments are being made in research and development of bioethanol and biodiesel as alternative fuels by governments and the major oil companies.