According to the US Energy Information Administration (EIA) fuel produced from sustainable sources such as crop waste, household trash, wood chips and other non-food organic substances will increase to 9.6 million gallons next year from the current sub-500,000 gallons.
Biofuel generation is projected to expand by 20% that transitions the experimental nature of the industry into a commercially viable one, reported Bloomberg.
Boost in production advances an energy regulation set by the US government that stipulates diesel and gasoline suppliers to blend conventional fuels with biofuels.
Renewable fuel producer Kior had opened a cellulosic biofuel plant earlier this year and plans to add another in 2013.
Kior spokeswoman Kate Perez told Bloomberg that the second facility is designed for an annual capacity of 40 million gallons a year.
"We believe that there will be ample opportunity in this space for many years to come," Perez said.
Several other companies also have refineries that are ready for production with increasing number of plants currently under-development and expected to be commissioned in the near future.
