Dynamic growth

Renewable ethanol as a growth market

Sustainably produced ethanol has long established itself as the world's No. 1 biofuel and the ethanol market has continued to grow rapidly in recent years. The increasing use of renewable ethanol as a replacement for fossil fuels has already been pushed for years in Brazil and the USA.
Against the background of the present regulations on biofuels in the EU and the objectives set by the Paris Climate Agreement, market researchers predict a dynamic growth of the European ethanol market.

Sustainable Ethanol - Biofuel No. 1 worldwide

Source: F.O.Licht
Thanks to its excellent positioning CropEnergies is well prepared for the strong growth of the ethanol market in Europe and will be one of the companies to take a major share in it. Together with its subsidiaries in Germany, Belgium, France and the UK CropEnergies AG has expanded its annual production capacities to approximately 1.3 million m³ of sustainable ethanol.

Global growth

Global ethanol production is expected to increase to 128 (127) million m³ in 2019. The fuel sector continued to account for 85% of it. World leader in the production of ethanol is the USA with 61.4 million m³, followed by Brazil with 35.2 million m³. Global ethanol production is expected to continue to rise in 2020.
In the USA, ethanol is mainly used as a 10% petrol additive. E10 is the standard petrol fuel there. E15 has been available at petrol stations since 2011.
In Brazil, it is offered both as a pure fuel (E100) and is also blended with conventional petrol with a content of 20 to 27 vol.-%. Roughly 90% of the new vehicle registrations in Brazil are Flexible Fuel Vehicles (FFVs) which can run on regular petrol, ethanol or a mixture of both.

Growth in the EU

Ethanol production in the EU is expected to reach 7.6 (7.8) million m3 in 2019. Fuel ethanol accounted for 5.2 (5.4) million m3 thereof. Domestic ethanol consumption was 8.2 (8.0) million m3 , of which 5.6 (5.5) million m3 was fuel ethanol.
With the implementation of the "Renewable Energy Directive", the consumption of ethanol in the EU is expected to rise: By 2020, the share of renewable energies in the transport sector should increase to 10%, and to at least 14% by 2030.
For example, E10 fuel has been available in Belgium since 2017 and has reached a market share of around 80% of the petrol market there. In 2019, E10 was introduced in Luxembourg and the Netherlands. Denmark, the Slovak Republic and Hungary followed on 1 January 2020.

Growth in Germany

In Germany, which still represents the largest market of ethanol in the EU, fuel ethanol consumption in 2019 is expected to be on a par with the previous year at 1.5 (1.5) million m³. This represents a saving of approx. 1 billion litres of petrol. With a market share of around 14 (13) %, its potential to make a decisive and cost-effective contribution to climate protection has not been fully exploited yet.

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