Monday, February 22, 2010, 10:35am PST | Modified: July 23, 2010, 11:25 AM

Biodiesel market on the rise

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Despite some high-profile hiccups in the alternative fuel business, Pike Research is assuring us that biofuels have a future.

The clean-tech research firm anticipates that, spurred by innovations in feedstocks such as waste grease, algae and others, biodiesel revenues will increase to $71.0 billion worldwide by 2020, up from $18.4 billion in 2010.

In addition, Pike Research’s analysis finds that biodiesel has some powerful backers. “Biogenetics is becoming a huge factor in the evolution of the market,” said Clint Wheelock, Pike Research managing director in a statement. “And biofuels companies are really leveraging the scientific knowledge base of genetic engineering. Biotech companies will be some of the big beneficiaries as the new breed of biofuels matures.” Other key players, according to the report, include the big oil companies, which have started to bankrol biodiesel R&D and commercialization.

Oregon's biofuel industry experienced a strong reversal of fortune, going from multiple companies vying to build plants on the Columbia River to last year's bankruptcy of Cascade Grain Products and the sale of its Clatskanie ethanol plant for $15 million.

In January, Energy Secretary Steven Chu announced $80 million for biofuel research.

Access the report (fee required) via Pike Research's website. A free executive summary is available with registration.