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Biofuel Production Expected to Rise

While biofuel production in 2005 has been 5.5 million tons, industry leader`s such a Mark Zenuk, vice president of Archer Daniels Midland Co., believe that production levels should reach 16 million tones in 2010. Zenuk`s company has a lot to gain from such a rise in production as the company is currently the no. 1 producer of biodiesel in Europe and ethanol in the US.

US government estimates predict that by the year 2050 world consumption of food will have doubled and that traditional sources of energy will no longer meet the demands of the population. For this reason the government is taking steps to insure that the demand for energy will be met by encouraging the development of alternative fuels such as biofuels.

Lately the Republican administration begun taking steps in the direction of a solution to the world`s future energy problems, traders at the New York Stock Exchange seem to feel that the Democratic Party is better equipped or inclined to deal with these problems. After the elections November 7th giving the Democrats the control of House of Representatives, alternative energy stocks rose. Archer Daniels Midland Co. rose 5.7% November 8th revealing investors belief in the likeliness of future tax incentives of funding for alternative energy sources due to heightened concern over the environment.