This year's world biodiesel output was around 5 million metric tons. According to Nancy DeVore, a senior analyst with Bunge Ltd., that figure will triple over the next three years.
Speaking at the Terrapinn Biofuels Finance & Investment World conference in London, DeVore said that world biodiesel production will be nearly 16 million tons in 2009.
"It will be a big challenge for the world to meet biodiesel demand," she says in a Dow Jones news wire.
DeVore says her prediction accounts for projects expected to be built, not just those currently being planned.
The large amount of soybean meal left as a byproduct of soy-based biodiesel - only 20% of crushed soybeans is oil - will limit the use of soybeans in biodiesel production, DeVore says. Other oilseeds, such as rapeseed, could fill the demand with less byproduct, she adds, and another Bunge official says that more rapeseed will be sourced from Eastern Europe in the coming years.