Bioethanol

Bioethanol

In the era where countries are working towards reducing greenhouse gas emission, bioethanol is playing a vital role. Bioethanol in large proportion when blended with gasoline lead to increase in engine efficiency. Biofuel is attractive alternative to conventional fuel as it is produced from cheap raw materials and by-products of sugarcane, molasse etc. Over the decades, conventional resources are depleting which would further drive the bioethanol market. Governments strict regulations to reduce carbon footprints and mandate use of ethanol in automobile industry would boost the bioethanol market. Rising globalization where pharmaceutics, beverages, cosmetics industry is expanding at a very influential rate would further propel the demand of bioethanol. However, requirement of large arable land for crop cultivation and modifications required in engines can hamper the growth of bioethanol market. Moreover, market players have ample of opportunities to grow in their business by increasing research and development in second and third generation bioethanol.

The Global Bioethanol Market is expected to grow at a strong CAGR of 5.5% during the forecast period (2023-2030). Government initiatives and laws supporting the use of renewable fuel sources are another driver of the bioethanol market. Many governments all over the globe are creating laws and incentives to encourage the production and use of bioethanol as part of their initiatives to lower greenhouse gas emissions and improve energy security. For instance, the Renewable Fuel Standard (RFS) in the United States mandates that a specific amount of transportation fuel sold in the country be derived from renewable sources, such as bioethanol. Similarly, the Renewable Energy Directive (RED) of the European Union establishes targets for the use of renewable energy in transportation, including biofuels.

• Based on feedstock, the market is segmented into starch based, sugar based, cellulose based, and others. Among them, sugar and starch based bioethanol hold a lucrative market share. This is mainly owing to government focuses on increasing crop cultivation which are extensively used in bioethanol production. In India, according to NITI Aayog report, government is encouraging use of water-sparing crops, such as maize, to produce ethanol by biological ways.
• On the basis of fuel blend, the market is divided into E5, E10, E15 to E70, E75 & E85, and other blends. Among these, E10 held a considerable market share in 2022. It is widely available and compatible with the existing infrastructure of fuel stations and vehicles. This makes it easily accessible and convenient for consumers without the need for significant modifications or adjustments to their vehicles. Further, countries are focusing to increase the blend bioethanol in gasoline which would result into lower carbon emissions, better air quality, self-reliance, use of damaged food grains, increased farmers' incomes, employment generation.
• For better understanding of the market, the report provides detail analysis for major region and country including North America (US, Canada, rest of North America); Europe (Germany, UK, France, Spain, rest of Europe); Asia-Pacific (China, Japan, India, Rest of Asia-Pacific) and Rest of World. Currently North America held prominent market share during the forecast period. Firstly, the region has a well-developed infrastructure for bioethanol production and distribution. North America has a significant number of bioethanol production facilities and a mature transportation network, which allows for efficient production and movement of bioethanol. This infrastructure advantage contributes to the region's prominence in the market. Additionally, there is a growing concern in North America regarding environmental sustainability and reducing greenhouse gas emissions. Bioethanol is seen as a cleaner and more sustainable alternative to fossil fuels, offering a potential solution to reduce carbon emissions in the transportation sector. This awareness and emphasis on sustainability have driven the adoption of bioethanol in North America and contributed to its prominent market share.
• Some of the major companies operating in the global bioethanol market includes Abengoa Bioenergy S.A., Archer Daniels Midland Company, British Petroleum PLC., Bluefire Ethanol Fuels Inc., Cropenergies AG, E. I. DU PONT DE NEMOURS AND COMPANY, Petróleo Brasileiro S.A., Poet LLC, Royal Dutch Shell PLC, Valero Renewable Fuels Company LLC