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| Countries covered: Chile Over the last decade and half, the escalating concerns over global warming along with the measures to reduce dependence on foreign fuel as well as reduction in emission levels has led to the development of sources other than oil for transportation. A wide range of alternatives have been developed from hydrogen based vehicles to natural gas vehicle. However, none of them have been as effective as biofuels ethanol and biodiesel both from commercial as well as environmental perspective. Use of biofuels for transportation have a great potential to replace a substantial amount of petroleum worldwide in coming decades and a clear trend in that direction has already begun. In last couple of years, the production and consumption of biofuels have entered a new era of global growth, experiencing expansion both in the scale of the industry and the number of countries involved. Rising prices of oil across the globe, development of more efficient conversion technologies and introduction of stronger government policies have resulted in huge investments in biofuel production. The production of fuel ethanol has more than doubled since 2000, while production of biodiesel has expanded nearly four-folds. This is in comparison to the 7% growth in production of world oil during the same period. Compared to petroleum, the use of biofuels for transport is still quite low in all the countries. By far the largest production and use of ethanol is in Brazil and the United States, with almost similar volumes, but much higher than any other country. Currently, ethanol is blended with gasoline and biodiesel is blended with petroleum-based diesel for use in conventional diesel-fueled vehicles. Ethanol accounts for about 90% of total biofuel production, with biodiesel making up the rest. The Biofuels Market in Chile explores the current developments and market potential of biofuels and the impact these fuels are having on the overall economy of the country. The report focuses on the market trends, the benefits derived and the environmental impacts of the biofuels in the country. The report further describes the government policies, current and future R&D in the sector and the competition that exists within the biofuels market of Chile. Highlights of the report:
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