Overview

Biofuel is a natural and renewable fuel alternative, produced from vegetable oils. It contains no petroleum, it is non-toxic and biodegradable. The term includes biodiesel and ethanol.

Biodiesel burns cleanly and therefore provides a significant reduction in the quantity of pollutants, which contribute to the formation of smog and global warming. Biodiesel fuels emit up to 85% less carcinogenic agents.

Diesel blends containing up to 20% biodiesel can be used in unmodified diesel engines, which presents the most viable solution for the immediate reduction of fossil fuel consumption.

In 2005, the European biodiesel market reached some €2.5 billion (approximately $3.7 billion). Based on the size of the existing market and blending ratio growth targets, the most conservative projections for the market size in 2015 are in the region of some €17 billion (approximately 25 billion USD).

The global biodiesel market, including among others, the USA, Brazil, China and India, is expected to reach some $55 billion by 2016.