Cellulosic ethanol market to take off, U.S. leads

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Posted on: 5 Jan 2014

Global cellulosic ethanol is expected to increase from 14 million gallons in 2012 to 412 million gallons in 2020. Commercial production to take off on a large scale in 2014.

02 January 2014 Cellulosic ethanol market to take off, U.S. leads Global cellulosic ethanol is expected to increase from 14.2 million gallons in 2012 to 412 million gallons in 2020, with commercial production anticipated to take off on a large scale in 2014. The U.S. is expected to retain its market dominance, says a GlobalData report. The growing feedstock demand will create a Ineos Bio, a Swiss firm, is the first company that got a structured market. commercial-scale cellulosic ethanol plant up and running in the U.S. this year. Photo: Ineos Bio Cellulosic ethanol is the most widely acclaimed alternative or additive for gasoline used for running vehicles. This environmentally friendly, non-food biofuel is produced through the fermentation of cellulosic feedstock such as forest and agricultural waste. Global cellulosic ethanol market is expected to increase, thanks to major players adding substantial production capacity and new companies joining the market. According to the latest report from research and consulting firm GlobalData, the U.S. is the global leader in cellulosic ethanol production, manufacturing 5.42 million gallons in 2012. The key countries considered for this report inlude the United States, Canada, Italy, France, Brazil and China. The U.S. boasts an abundance of the biomass feedstock, and is the only country currently working to promote the cellulosic ethanol market, with the Department of Energy (DOE) providing grants to help companies establish a commercial-scale cellulosic ethanol plant. As a result, several companies have set up pilot and demonstration plants and a few commercial plants are expected to be commissioned. The U.S. have also mandated the addition of 10 percent ethanol in gasoline fuel, setting steady domestic demand for the industry, while certain recently released cars are able to run on a 85 percent ethanol, 15 percent gasoline mix. Feedstock demand to create structured market Corn stover and wheat straw are among the most freely available types of feedstock used in countries producing cellulosic ethanol, and growing ethanol demand may see these nations utilizing the residue of their corn crop for ethanol production, creating a sizable market for agricultural waste. GlobalData expects that the growing feedstock demand will create a structured market, in which biomass feedstock prices will be set based on their ethanol yield and the prevailing trading price of ethanol. Some EU countries such as France and Italy have cellulosic ethanol production infrastructure, but a limited supply of biomass feedstock. Growth of commercial production in these countries may fuel the need to import feedstock from nearby countries or expand production to other countries with ample feedstock availability. A few producers with upcoming commercial scale plants in the U.S. have already started signing agreements to procure agricultural residue and other kinds of cellulosic feedstock. Sources: GlobalData Related: Global fuel cell market to undergo massive growth
Posted: 05 January 2014

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