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Biofuels are
using as energy source from the last 15 years as gaseous, solid and liquid
form. Liquid biofuels included pyrolysis bio oil, bioethanol and biodiesel, but
bio oil is under processing. Wood charcoal, fire wood and wood chips was used
as solid biofuels.

Bioethanol is
obtained from agricultural products including starchy and cereal crops such as
sugarcane, corn, beets, wheat, and sorghum. Biodiesel is prepared from oil- or
tree-seeds such as rapeseed, sunflower, soya, palm, coconut or jatropha. The
expected benefits of biofuels are reflected in the increasing number of
countries introducing or planning to introduce policies to increase the
proportion of biofuels within their energy portfolio. If this goal is obtained,
a lot of increases in production is required to fulfill worldwide demand. For
instance, the European Union’s goal of 5.75 per cent biofuel content in the
fuel transport blend by 2010 will

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a fivefold increase in European Union production. World biofuel production will
increase four time in upcoming 20 years, which will account for ten percent of
global vehicle gasoline. Bioethanol is by far the most widely used biofuel for
transportation worldwide. Now a day, bioethanol is the mostly used biofuel for
transport globally.  In 2004 worldwide
production of biofuels reached thirty-three million liters, with an average
annual growth of 12 per cent over the last five years. Almost 60 % of worldwide
bioethanol yield is obtained from sugarcane and 40 per cent from other crops.
Brazil leads world production with 15 billion liters distilled from sugarcane,
equivalent to 38 percent of global production. The United State is the 2nd
largest producer and consumer, accounting for 32 % of world bioethanol
production in 2004. Bioethanol production was started from corn in the 1970s,
but its use increased recently. Bioethanol production capacity increased from 4
billion liters in 1996 to 14 billion liters in 2004 and currently accounts for
over 2 percent of national petroleum use. Biodiesel production started in the
1990s and since then production has been increasing. Worldwide biodiesel
production reached a record of 1.8 billion liters in 2003. Compared to
bioethanol, however, total biodiesel production is fairly small. The European
Union is the main producer of biodiesel, which accounts for about 95 per cent
of worldwide production. Biofuels currently account for about 1.4 percent of EU
fuel consumption, and biodiesel represents about 82 per cent of the European
Union biofuel market. Between 80 and 85 per cent of European Union production
comes from rapeseed oil, which is equal to 20 % of the total European Union
rapeseed production. In 2011, global production of bioethanol, mainly from corn
and sugar bean, reached about 10 billion liters, and the expected volume of
production in 2020 is 281.5 billion liters.

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