U.S. Will Have Largest Biodiesel Market by 2012, Respected Research Group Says

U.S. Will Have Largest Biodiesel Market by 2012, Respected Research Group Says

The United States is positioned to become the single largest biodiesel market with 19 percent of consumption by 2012, according to a report released Tuesday.

Menlo Park, California-based SRI Consulting said the industry grew 50 percent from 2002-2007 -- the highest growth in the chemical industry -- and is poised to grow at 30 percent between 2007 and 2012.

It will be followed by Germany and France. New and large markets for biodiesel are expected to emerge in China and India, since the governments of both countries have announced major biodiesel initiatives.

SRI projects a slower pace of growth for the global biodiesel industry due to market uncertainties such as the ongoing fuels-versus-food debate, rising raw material costs, changing regulatory environment, a slowing global economy and the current financial crisis.

"An important development over the last several years has been the shift in global biodiesel patterns. Only five years ago Europe was a dominant player, with 83 percent of capacity. By 2007 the European share had declined to about 46 percent as North America and Asia grew to 23 percent and 19 percent respectively," SRI said.

SRI is a business research service for the global chemical industry.

Scott Doggett:  is an AutoObserver.com Associate Editor.