A scarcity of fossil resources, energy security, climate change, environmental protection are the issues faced by the energy sector at present. Alternative sources of energy that are environment friendly, renewable, and sustainable, have been found to be reducing our dependence on fossil fuels such as oil. Among all renewable energy sources, 40% of the total energy consumption in the world is fulfilled by the liquid biofuels. The use of liquid biofuels contributes to the reduction of greenhouse gases emission, regional development, and energy supply security. The governments of major economies such as the United States, Europe, and other developing regions have established the basic policies to promote the use of ecofriendly biofuels.

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Synthesis of Ethanol takes place by the fermentation of sugars derived either naturally by yeast or via petrochemical process i.e. hydration of petroleum based Ethylene. Ethanol produced by Biomass is known as Bioethanol. It is a colorless and flammable liquid also known as Ethyl Alcohol, grain alcohol, and EtOH. Ethanol has a wide range of applications as a fuel additive, industrial solvent, beverage, disinfectant, and in personal care, and among others. Majority of the Ethanol produced is either used as an engine fuel, in the form of pure Ethanol or as a fuel additive to reduce the emission of exhaust gases.

BIOETHANOL PROPERTIES AND ITS SOURCES OF PRODUCTION

Bioethanol is easily biodegradable, less toxic, and produces lesser air-borne pollutants in comparison to petroleum fuel and has been identified as the mostly used biofuel owing to these properties. A variety of biobased feedstocks from the first, second and third generation are used for the production of Bioethanol. Feedstocks rich in sucrose (sugar beet, sugarcane, sweet sorghum, and fruits) and starch (corn, sweet potato, wheat, rice, potato, cassava, and barley) are used to make first-generation Bioethanol. Second-generation Bioethanol is derived from lignocellulosic biomass such as wood, straw, and grasses. Algal biomass including microalgae and macroalgae are utilized as feedstocks to produce the third-generation Bioethanol.

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Ethanol has emerged as an alternative fuel in many countries that instigate the demand for Bioethanol in the market. The United States is the largest Ethanol producer with the production of nearly 16.1 billion gallons of Ethanol in 2018 due to the abundance of raw material (mostly corn). In the United States, more than 98% Gasoline contains Ethanol and in order to reduce air pollution, E10 (10% Ethanol, 90% Gasoline) is typically used. The United States and Brazil produce 85% of the world’s total Ethanol. Europe is the third largest Ethanol producer and Germany, and France holds the major share for Bioethanol production in the region followed by Spain.

INTERNATIONAL APPROACHES TOWARDS USE OF BIOETHANOL AS BIOFUEL

The Ethanol fuel industry in the United States is mostly based on ‘corn’ as feedstock. According to the Renewable Fuels Association, it is believed that in the coming years, a material portion of the ≈150-billion-US-gallon (570,000,000 m3) per year market for gasoline will be replaced with fuel Ethanol.

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Growth Energy is one of the prominent biofuel trade association in the United States. It is the base for majority of all Ethanol plants as well as for the major fuel retailers and leading industrialists in the United States, whose businesses support the Bio-ethanol industry. Recently, new innovative business members: Frazenburg, Brown Tank and Bioleap have joined Growth energy. Amongst all of them, Frazenburg has a solid footprint in the biofuels industry.

“RenovaBio”, a long-term policy for Ethanol has been launched by Brazil, to accomplish the environmental commitments under the Paris Agreement. To achieve that goal by 2030, Brazil must increase the Ethanol production from the current 33.2 billion liters to around 50 billion liters. Moreover, there are more than sixty countries with Ethanol blending policies. Thus, the demand for Ethanol to produce biofuel is continuously rising, hence leading to the expansion and growth of Bioethanol market across the globe.

Asia Pacific regions like China, India, Thailand, and Japan are also focusing on more sustainable and reliable energy sources. Therefore, there is an upsurge in the demand for Ethanol specially as an alternative fuel in the region. Several approaches and policies have been made by governments of the emerging countries to increase the adoption of biofuels to reduce greenhouse emissions, like the Chinese government has planned that by the end of 2022, the nationwide coverage of vehicle-use E10 Ethanol gasoline should be achieved. Till now, 15 provinces have fully or partially implemented the use of Ethanol gasoline out of 31 provinces in mainland China. In 2021, China has imported around 200 million gallons of Ethanol from the United States to fulfill its domestic demand. Moreover, on 7th January 2020, Clariant had signed a license agreement with Anhui Guozhen and Chemtex for its sunliquid cellulosic Ethanol technology. The joint venture is planning to realize a full-scale commercial cellulosic Ethanol plant, which is expected to be a major push for the Bioethanol industry.

Indian government has signed an MoU on Bioenergy Cooperation with the Brazilian government and on 5th June 2021, Indian govt. released the report on “Roadmap for Ethanol blending in India 2020-25”. It includes an annual guideline for the production and supply of Ethanol till 2025-26, and to achieve the goal some of the following approaches have been made:

From April 2023 onwards, oil marketing companies such as Indian Oil Corp (IOC), Hindustan Petroleum Corp Ltd (HPCL) will be expected to provide 20% Ethanol-blended fuel, with the full transition expected in two years.
Additionally, SAIL with the help of the Indian government is going to set up India's first gas to Ethanol plant worth around USD 54 million at its existing plant in Maharashtra. Under the National Policy on Biofuels 2018, Twenty percent "viable gas funding" or aid will be provided by the government. In India, this would be the first such plant and fourth in the world in the steel sector. Formerly, two plants in China and one at ArcelorMittal's plant in Belgium is using the bio-ethanol fuel generation technology.
TATA Projects Ltd. has received an order for the Ethanol plant of capacity, 100,000 liters Ethanol per day from Bharat Petroleum Corporation Limited (BPCL). This project is of considerable national significance.
ETHANOL DEMAND AND ITS MARKET OUTLOOK

Surging demand for Ethanol as biofuel coupled with the increasing consumption of Ethanol as disinfectant or as sanitizer is likely to drive the Ethanol market. North America dominates the global Ethanol market and holds the largest market share due to its early adoption and technological advancements. Moreover, increasing demand for green fuels is also a factor propelling the demand in North America during the forecast period. Asia’s Ethanol market is anticipated to grow owing to growing automotive sector in the economies like China, India, and Japan and increasing awareness about the harmful effects of petrochemicals-based products on human health and environment. Thus, encouraging the manufacturers to shift focus on natural alternatives like Bioethanol, that is expected to drive the growth of the Ethanol market in the forecast period.

LEADING PLAYERS

Major players operating global Ethanol market are Aventine Renewable Energy, Green Plains Inc., Archer Daniels Midland Company, Pure Energy Inc., British Petroleum, Cargill Corporation, and Others, while some of the key players in Bioethanol market are Archer Daniels Midland company, POET LLC, Tereos, Green Plains, Sekab Biofuels & Chemicals AB, Raizen, Valero Energy Corporation, Abengoa Bioenergy Corporation, and Cargill Corporation.

CONCLUSION

Ethanol is a versatile chemical having wide range of applications in fuel and as fuel additive, industrial solvent, beverage, disinfectant, personal care products, and others. Fuel and fuel additives share the major segment of global Ethanol market. Volatility in the prices of oil and petrol impacts the petroleum derived Ethanol prices, consequently, giving a push to derive Ethanol from biobased sources. Additionally, escalating consumption of biofuels like Bioethanol in the automobile and the aviation industry is likely to create opportunities for the Bioethanol market in the coming years. Hence, adoption of eco-friendly products is supposed to provide new growth chances for the market players, and it is extremely important to keep a track of which region offers the best opportunities for the Bioethanol industry in the forthcoming years.

Frequently Asked Questions:

Who is the largest producer of Ethanol?

United States is the leading producer of Ethanol due to the availability of raw materials in abundance, technological advancement and rising demand for green fuel from the automotive industry. Around 85% of the world’s Ethanol is produced by the United States and Brazil.

Who are the major players in the Bioethanol market?

Aventine Renewable Energy, Archer Daniels Midland Company, Abengoa Bioenergy Corporation, POET LLC, Tereos, Archer Daniels Midland company, Green Plains, Sekab Biofuels & Chemicals AB, Raizen, Valero Energy Corporation, Cargill Corporation and Flint Hills Resources are some of the major players in the Bioethanol market.

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