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Algae Biofuels Poised for 72% CAGR – Report

The Japanese nuclear disaster was an ill omen to many but not necessarily for the world of alternative energy. The disaster indeed has re-awoken the world to the possibilities of alternative energy. While natural gas (Liquefied Natural Gas) would receive an immediate boost, it is obvious that the green technologies would also re-emerge as favourites. When I say green technologies would come to the limelight, it obviously means that the green machine (algae) would certainly take the centre stage. Algae biofuels have already started hitting the headlines with all new and revised projections.

 A new due diligence report by Arrowhead Business and Investment Decisions, for the biofuel company Algae.Tec has some seriously motivating numbers for the algae fuel enthusiasts around the world.The global market for algae is poised for an explosive growth in the years to come with an annual production capacity of more than 60 million gallons by 2020 with a whopping 72% CAGR. Algae biodiesel would have a market value of roughly over $1.3 billion by 2020.

Obviously US, with all the caps and mandates driving the country, is all set to ramp up the production and would be one of the early movers among world market. The report points out that EU will contribute to 30% of the global market and industrial focus on research will be predominant in EU countries. EU, with all its research is expected to come up with disruptive breakthroughs that might transform the dynamics of the industry. Insufficient access to water and land might limit the actual contribution from EU countries and the USA. It is apparent that Pacific Northwest National Laboratory has echoed the same fact that water requirements would limit algal productivity and that wise management of water resources would boost the production capacity of algae biofuels. The report from Arrowhead Business has also pointed out that there are fewer projects in operation in the Asia Pacific and Latin America while it is anticipated that these countries will gain significant market share in years to come.

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