An investments analyst has outlined the future prospects for companies that specialise in biofuels, socially-responsible investments specialists may be interested to learn.

Karina Litvack, head of governance and sustainable investment at financial services provider FC Investments, has acknowledged that the first wave of biofuels encountered criticism for pushing up food prices and encouraging farmers to destroy forests to increase planting space.

However, he pointed out that the sector could experience a turnaround as a result of scientific developments.

In particular, the honing of chemical processes designed to break down waste from agricultural sources into usable energy could be significant for investments brokers , he said.

From an investment perspective, the upwards pressure on crop prices as a result of competing demand for food and biofuels is likely [to] pressure the margins of companies using only human food crops, he concluded.

Recently, Cuban president Fidel Castro circulated a news article to various Cuban newspapers criticising perceived collaboration between Brazil and the US over biofuels.

In particular, Mr Castro argued that Brazil should have refused to increase biofuels production until the US agreed to lift restrictive trade tariffs.