Ethanol Market Size, Share & Industry Analysis, By Type (Synthetic Ethanol, Bioethanol), By Raw Material (1st Generation Feedstock (kernels and starchy crops biomass), 2nd Generation Feedstock (lignocellulosic biomass), 3rd Generation Feedstock (Algal biomass),4th Generation Feedstock (Industrial waste CO2), Petroleum derived chemicals), By Application (Transportation, Energy, Chemical, Others) and Regional Forecast, 2023-2030

Sustainable Development Goals (SDG) is one of the primary goals of the United Nations. Sustainable development slows down climate change and reduces global warming. Use of alternative fuels is mandatory for our fight against climate change. Biofuels like bioethanol play an important in the overall scenario.

Ethanol can be produced by myriad methods. Bioethanol, an eco-friendly and renewable variant of ethanol, can be produced from biomass by the hydrolysis and sugar fermentation processes. Bioethanol is entirely comprised of biological products, and hence, the combustion of bioethanol results in cleaner emissions (carbon dioxide, steam, and heat).

This cycle of creation and energy combustion means bioethanol could potentially be a carbon-neutral fuel source. Bioethanol acts as a substitute for petroleum products. Bioethanol blended gasoline is used in several countries. Synthetic ethanol is also produced from petroleum derived ethylene. Both bioethanol and synthetic ethanol are chemically indistinguishable and have same the same chemical formula.     

Key Market Driver -

Key Market Driver –Regulatory push towards production of bioethanol.

Key Market Restraint -

Key Market Restraint – Unavailability of high-end technology and lack of technology transfer

On the basis of type, ethanol is categorized in synthetic ethanol and bioethanol, Based on raw material, ethanol is segmented in 1st Generation Feedstock (kernels and starchy crops biomass), 2nd Generation Feedstock (lignocellulosic biomass), 3rd Generation Feedstock (Algal biomass), 4th Generation Feedstock (Industrial waste CO2) and Petroleum derived chemicals. First-generation bioethanol feedstock is mainly edible food crops such as rice, wheat, barley, potato, corn, sugarcane, and vegetable oil, for example, soybean oil, sunflower oil, olive oil, canola oil, mustard oil, etc.

Although first-generation bioethanol has gained attention in several countries, the feasibility of production is still questionable due to competition with the food supply and land utilization, which increases the food cost. Although second-generation bioethanol feedstocks have addressed some of the issues associated with first-generation feedstocks, they still have some drawbacks.

Third-generation bioethanol feedstocks represent a promising feedstock due to the number of remarkable advantages over first- and second-generation feedstocks. For instance, microalgae can be cultivated on marginal land with a water environment, a low cost of cultivation, a high conversion efficiency, and a high energy density. Production of bioethanol from fourth-generation feedstock is still in the embryonic stage. Bioethanol is used in automobiles, energy production, chemical industry, etc. 

The primary market driver for the global ethanol market is the regulatory push towards the production of bioethanol. Increasing awareness about decrease the carbon footprints and use of alternative fuels is also driving the market growth of the bioethanol market. Key market restraint for the global ethanol market is unavailability of high-end technology for ethanol production in developing economies. Countries are reducing dependency on petroleum-derived ethanol and shifting towards bioethanol.  

Key Players Covered

Some of the notable companies in the global ethanol market are Pacific Ethanol, Inc. Cremer Oleo GmbH & Co. KG, AGRANA Group, Archer Daniels Midland Company, Raízen Energia S.A, POET, SEKAB, Nordzucker AG, Abengoa Bioenergía, Petrobras Biocombustíveis, Tereos, Soufflet Group, Attis Biofuels, ENVIRA, Ensus, Green Future Innovations Inc., Cargill, Bioethanol Japan Kansai Co Ltd, Vivergo, and DONG Energy.

Regional Analysis

The global ethanol market has been segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The USA is the largest producer, and Brazil is the second-largest producer of bioethanol in the world. The Paris Agreement of 2015 promotes the use of alternative technology and fuels to reduce global emissions and mitigate climate change in the coming years. Use of bioethanol blended gasoline-like E5, E15, E20, etc. will increase on account of Paris Agreement.

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With the “Renewable Energies Directive,” which came into effect in 2009, the EU prescribed mandatory blending rates for renewable energies in the transport sector. Their proportion is required to increase to 10 percent of the energy content in the transport sector in all member states by 2020. Government initiatives in China and India are expected to increase bioethanol use and production in the coming years. The principal suppliers of petroleum-derived ethanol are Saudi Arabia and South Africa. There are also large plants of synthetic ethanol in Europe, USA, and Japan.

Segmentation

Key Industry Developments

• In February 2019, Albioma announced the industrial commissioning of the first peak-load combustion turbine (CT) operating primarily on bioethanol in Saint-Pierre, Réunion Island. The CT works with two types of fuel: bioethanol (80%) from the distillation of sugarcane molasses, produced locally at the Rivière du Mât distillery, and diesel fuel (20%), which is needed to start the turbine.


• In August 2019, Maharashtra state government has asked permission from the Indian Central government to allow sugar factories in Maharashtra to convert the sugar stock in ethanol.