Energy is an essential input for social development and economic growth. The role of energy as an essential catalyst to economic growth and an enhanced standard of living is a reality that policymakers should factor into their decisions and when evaluating environmental, economic, and social goals. The International Energy Agency estimates that world energy demand will increase by half again between now and 2030, with more than two thirds of this increase coming from developing and emerging countries. The population of developing countries is estimated to dou­ble by 2055, while the population of the industrial countries will increase by only 15% over the same period. New conventional fuel explorations, energy wars, and political maneuvers will not prevent the production of nonconventional fuels and the continuing evolution of a truly global energy market.

There are several reasons why biofuels are considered relevant technologies by both developing and industrialized countries. They include energy security reasons, environmental concerns, foreign exchange savings, and socioeconomic issues re­lated to the rural sectors of all countries in the world. Biofuels could be peaceful energy carriers for all countries.

Bioenergy offers opportunities for additional value to be derived from products already in the economy. The dispersed nature of most biomass resources lends it­self to smaller-scale operations of up to 50 MW. These are within the capability of communities to feed and operate, creating and retaining wealth within the local economy.

New employment opportunities arise in growing and harvesting biomass, trans­port and handling, and plant operation. They also extend to equipment manufactur­ers and maintenance crews. Farmers may improve returns as marginal crops become viable, giving an additional source of income from energy byproducts. Degraded forests may be rejuvenated and waste streams diverted to produce energy.

Bioenergy can also contribute to local and national energy security, which may be required to establish new industries. Bioenergy contributes to all important ele­ments of national/regional development: economic growth through business earn­ings and employment, import substitution with direct and indirect effects on GDP and trade balance, and security and diversification of energy supply. Other bene­fits include support of traditional industries, rural diversification, and the economic development of rural societies. These are all important elements of sustainable de­velopment.

At the same time, global population and affluence growth have caused upward pressure on food prices, which has led to food insecurity in the developing world. Conversion of corn into ethanol, or the use of arable land and fresh water for biofuel crops like corn, sugar cane, or jatropha, has exacerbated this situation and linked food and energy in a dangerous way.

To satisfy energy needs and avoid putting pressure on foodstocks, an alternative biofuel is needed. Water algae’s superior yields, combined with its ability to grow without arable land or fresh water, mean that algae is a far better biofuel candidate to replace oil than any land crop. An algaecentric energy-independence strategy would provide greater energy security while promoting poor-country development and without threatening food security.