Global Fuel Ethanol Market: The rising requirements for minimizing carbon emissions from gasoline in the automotive & transportation industry is likely to boost the fuel ethanol market.

The global fuel ethanol market size was estimated at USD 89.6 billion in 2020 and is expected to reach USD 128.4 billion by 2027 at a CAGR of 5.3%. The rising requirements for minimizing carbon emissions from gasoline in the automotive & transportation industry, is likely to boost the usage of ethanol as a bio based additive over the next couple of years.

North America, Europe, and Central & South America have been the major consumers of the product since the past few years. Numerous developing countries in Asia Pacific such as China, India, and South Korea are major crude oil importers. Use of ethyl alcohol as a blending additive can be considered to benefit these countries in terms of improving energy security and efficiency of motor vehicles.

In February 2017, Pacific Ethanol, Inc. formed a technology and licensing agreement with Edeniq, Inc. a key developer of ethyl alcohol processing technologies. This strategy enabled the company to utilize Edeniq’s Pathway and Cellunator technologies for manufacturing cellulose-based ethyl alcohol in Madera, California.

Starch-based ethyl alcohol is considerably consumed as a gasoline additive in the U.S. This product type is manufactured by dry milling technology using corn kernel feedstock. In 2015, the country’s automotive producers approved use of E15 and E85 product blends regulated by the U.S. E.P.A. Some of the key automotive players approving the use E15 blend include AUDI, FCA Group, and Ford Motor Company.