Biofuel may drive growth in renewable chemicals

Development of biofuel could be among the driving forces behind growth in the renewable chemicals sector in the coming five years.

Global Industry Analysts expects to see the total value of the renewable chemicals market reach almost $57 billion (£37 billion) by that time.

Next-generation biofuel and its derivatives could be among the innovations helping to shore up this increase in market value.

Renewable chemicals can be derived from biomass, forestry waste and agricultural waste products, the analyst says.

In recent years, interest in such products has been buoyed by the narrowing price gap between them and conventional, petrochemically produced alternatives.

A desire for reduced greenhouse gas emissions and lowered dependency on fossil fuels is also helping to drive the market forwards.

Global Industry Analysts profiled 122 different companies in the sector while compiling its report, with forecasts based on those businesses' expected earnings in each year from 2009 until 2015.