Why Are Governments Focusing on Developing New Bioethanol Production Methods?

According to the World Health Organization (WHO), the transportation sector is a major source of fossil-fuel carbon dioxide (CO2) emissions and the largest contributor to climate change. Further, the Environmental and Energy Study Institute (EESI) states that the combustion of fossil fuels accounted for 74% of greenhouse gas emissions in the U.S. in 2019. Likewise, the Report prepared by Climate Analytics for the Australian Conservation Foundation (ACF) states that Australia was responsible for around 1.4% of global fossil fuel combustion emissions in 2017.

The increasing pollution levels have, therefore, encouraged governments to mandate the usage of bioethanol as a transport fuel, owing to which the bioethanol market will grow during 2021–2030. According to P&S Intelligence, the market generated $38.0 billion revenue in 2020. Currently, bioethanol producers and government organizations are conducting research activities improve bioethanol production from plant residues, which are suitable to generate second-generation bioethanol (SGB). For example, the European Union (EU) initiated the Bioethanol for Sustainable Transportation (BEST) project to develop bioethanol vehicles.

In the recent past, the E10 bioethanol blend was consumed in the highest volume as it can be used in most of the new light-duty diesel vehicles and cars without modifying the engine or fuel system. In comparison to E5, E15 to E70, E75 to E85, and E86 to E100, E10 is a much reliable fuel. All these fuel blends are derived from solid, liquid, or gas feedstocks. In the past few years, bioethanol producers preferred solid feedstock over others as ethanol derived from solid feedstock such as sugarcane is a sustainable fuel and considered an ideal vehicle fuel since the advent of automobiles.

In the upcoming years, the transportation sector will consume the highest volume of bioethanol due to the increasing implementation of laws mandating biofuel blending. Besides, the cost-effectiveness and eco-friendly trait of this biofuel are also encouraging vehicle owners to use it as automobile fuel. Moreover, the booming vehicle sales, owing to the rising disposable income of people, will also fuel the consumption of bioethanol as a fuel globally. In addition to the transportation sector, cosmetics, alcoholic beverages, paint and coatings, pharmaceuticals, and chemical companies also use a considerable volume of bioethanol.

Nowadays, bioethanol producers, such as The Archer-Daniels-Midland Company, Flint Hills Resources LLC, Tereos, Green Plains Inc., Raizen SA, POET LLC, and Valero Energy Corporation, are focusing on geographical expansions to offer their products to a greater number of customers. For instance, in January 2020, TATA Projects Limited, an India-based infrastructure company, received the order for the second-generation bioethanol project of Bharat Petroleum Corporation Limited (BPCL). This project will be based in Odisha and will have a production capacity of 100,000 liters per day.

Geographically, the North American region dominated the bioethanol market in the preceding years, and it is also expected to retain its dominance in the forthcoming years as well. This can be primarily ascribed to the large-scale production of bioethanol and the presence of favorable biofuel policies in the region. Both Canada and the U.S. have mandated the usage of bioethanol blends in automobiles. Additionally, the rising crop yields and growing public and government focus on energy efficiency will also augment the usage of bioethanol in North America. 

Thus, the surging concerns regarding climate change and increasing research activities for developing new production methods of biofuels will encourage more people to shift from fossil fuels to bioethanol.