It is only Blue Sky ahead for Biofuels (at least that is what we wish were the case).  The combined global biodiesel and ethanol markets will reach $247 billion in sales by 2020, up from $76 billion in 2010, Pike Research of Boulder said Monday. That's despite recent challenges to the biofuels market -- including a limited supply of cheap feedstocks, ethical issues surrounding the use of food for fuel, energy price volatility, the recession and overcapacity of production -- the market research and consulting company said.

"In the near term, the biofuels market looks like a train wreck," Pike Research managing director Clint Wheelock said in a statement.

"The economics of ethanol and biodiesel are not yet competitive with petro fuels, and governments have pulled back some of their support. However, in the 10- to 15-year timeframe, the outlook remains very positive," Wheelock said.

"The longterm commitment of national overnments to foster robust biofuels markets remains solid, and technological advances and economies of scale will dramatically
improve the economics of biofuels versus petroleum."

Pike Research said it anticipates three key waves of biodiesel development over the next several years:
-- Fuels based on waste greases will reach market in 2010.
-- Jatropha-based fuels will begin having a significant impact on the market in 2014. Jatropha are plants native to Latin America that produced oil used to make biofuels in other countries.
-- Algae-based biodiesel will achieve commercial availability in 2012, Pike Research predicts, and will have a larger market impact beginning in 2016.

Pike Research is a market research and consulting firm that provides in-depth analysis of global clean technology markets.  The company’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Renewable Energy, Clean Transportation, Clean Industry, Green Consumers, and Environmental Management sectors.  For more information, visit www.pikeresearch.com or call +1.303.997.7609.