Surging oil prices have shifted the world’s attention towards biofuel development says a new report.

In a few countries, aggressive promotion of biofuels have begun to pay dividends. Brazil, the world’s leading producer of ethanol, continues to promote expansion of production. By 2012 the government estimates that its total export could reach 12 billion litres a year, including exports to the U.S.

The US is the largest oil importing country, and the recent rise in oil prices at global level has driven the country to look seriously for development of the biofuel industry. Apart from oil security, the government’s strong stand for enhancing the use of renewable energy has been a motivating factor in the country.

US was ranked as the largest producer of ethanol (Biofuel) in 2006, capturing a market share of around 36% in the global production.

However, the rising concern for the biofuel feedstock prices has opened a smooth growth path for the cellulosic ethanol in the US. In terms of production, biodiesel need more attention in the country.