Cellulosic Ethanol Market Overview
A second-generation biofuel, cellulosic ethanol is produced through thermochemical or biochemical conversion of feedstock (which are often not food crops). Used and unfit for human consumption vegetable oil, for instance, is an example of a second-generation biofuel.
It is possible that cellulosic ethanol will one day replace both gasoline and ethanol made from grains as a transportation fuel. Employment and economic growth in rural areas are two additional benefits of the expanding cellulosic ethanol business. Only a select few developed nations and some of the world’s largest economies, including Brazil, India, and China, have actively pursued cellulosic ethanol R&D thus far.
Even though cellulosic ethanol has not yet entered widespread commercial production, many pilot plants have been up and running in recent years. Even while second-generation biofuels are unique and innovative, they present their own set of sustainability challenges. However, because manufacturing facilities for cellulosic biofuels are situated in rural areas where feedstocks are plentiful, the rural economy has benefited from this trend.
As a result of several countries’ dedications and the availability of natural resources, the cellulosic ethanol market is predicted to expand significantly over the next few years.
Cellulosic Ethanol Market Size Growth Analysis:
Valued at about $650.0 mn in 2021, the global cellulosic ethanol market is expected to reach $11953.20 mn by 2030, expanding at a CAGR (compound annual growth rate) of roughly 38.2% between 2022 and 2030.
It is expected that global cellulosic ethanol use will expand as a result of a number of factors. Not only is the carbon footprint of bioethanol smaller than that of conventional fuels, but it also has government support in the form of policy and taxes, which is predicted to increase its use as a transportation fuel worldwide. The Clean Air Act and other laws aimed at reducing greenhouse gas emissions are two examples of the types of legislation that are projected to have a major impact on the development of the sector.
Liquid fuels for transportation are predicted to have a significant uptick in demand over the next few years. As a result of the scale of their respective markets, the United States and Europe have lately implemented aggressive policies to promote the use of cellulosic ethanol. We anticipate that the global cellulosic ethanol market will be directed by mandates in these nations.
The government is pushing cellulosic ethanol as a way to cut down on oil imports. One of the most important factors impacting the cellulosic ethanol market is the rapid expansion of the agricultural sector in many emerging economies. Therefore, it is expected that the global market would strengthen in the coming years as more and more large-scale commercial plants are installed to manufacture cellulosic ethanol.
The price of cellulosic ethanol is affected by the market value of corn. Because of this, the market for cellulosic ethanol may not expand as quickly as expected. The expansion of the cellulosic ethanol industry is hindered by a lack of research and development activities as well as insufficient infrastructure in Middle Eastern countries.
Cellulosic Ethanol Market Regional Analysis
Production of cellulosic ethanol is highest in Brazil and the United States. To reduce strategic risk associated with petroleum product availability, the cellulosic ethanol market in India is predicted to expand rapidly over the next few years.
Due to declining crude oil prices, rising feedstock costs, and looser government mandates, Australia’s cellulosic ethanol industry has shrunk dramatically in recent years, making it one of the most economically stagnant in the Asia-Pacific region. But in other areas, the government has backed an advanced biofuels factory to make jet and military fuel. When it comes to the production of cellulosic ethanol, China is a major player. Pilot programs have already begun in a number of jurisdictions.
Furthermore, with the help of local and provincial governments, cellulosic ethanol production in China is expected to continue growing dramatically. Due to the excess of sugarcane wastes, the cellulosic ethanol market in Latin America is poised for explosive growth. However, there are a lot of players in the cellulosic ethanol market, with over a hundred different firms from dozens of different nations.
Cellulosic Ethanol Market: Key Players
- Aemetis Inc.
- Enerkem Inc.
- Iogen Corporation
- Praj Industries
- Beta Renewables
- Abengoa
- Raízen Energia
- E.I. du Pont de Nemours and Company
- GranBio Group
- Novozymes A/S
- POET – DSM Advanced Biofuels LLC
- Alliance Bio-Products Inc.
Global Cellulosic Ethanol Market Segmentation
- The global market is segmented into several categories based on product type, including agriculture residue, forest residue, energy crops, municipal solid waste (MSW), and others.
- Based on the application, the global Cellulosic Ethanol Market is segmented into gasoline and detergent.
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