Production of bioethanol in the UE

Bioethanol is the most produced biofuel worldwide with over 65'000 Ml in 2008. This figure is mainly due to the United States (52%) and Brazil (37%). In the United States, the RFA (Renewable Fuel Association) estimated bioethanol production to over 34'000 Ml in 2008, mostly from corn. According to Unica (União da Agroindústria Canavieira), Brazil reached an output of more than 24'500 Ml (including more than 4'000 Ml for exports) in 2008, obtained mainly from sugarcane. With a production of 2'816 Ml in 2008, the EU ranks third behind the two majors. More recently, Asia (especially China, Thailand and India) has also embarked on large scale fuel-ethanol production and represents one of the largest production potential in the coming years. In 2008, the production of fuel-ethanol in China amounted to 1'900 Ml, thereby placing the country at rank 4 worldwide, just behind the EU.

The production of bioethanol in the EU and Switzerland is shown in the figure below. Figures are given in million litres (Ml) and refer to the year 2008.

Table : Production of fuel-bioethanol in the EU-27 and Switzerland in 2008

If the EU is today the third producer of fuel-bioethanol in the world behind the United States and Brazil, its production is however much lower than the first two (by a factor of about 10). In 2008, the production of fuel-bioethanol amounted to 2'816 Ml, i.e. an increase of 56% compared to 2007.

The table below shows the evolution of bioethanol production over the past 7 years in the 10 major producing countries in the EU.

Table : Evolution of fuel-bioethanol production in the EU (2002-2008)

France confirms in 2008 its position at the forefront of fuel-bioethanol production in the EU. Like biodiesel, bioethanol in France is exempted from the tax on domestic oil products, within existing production quotas, i.e. 563 Ml for bioethanol, divided between direct incorporation to gasoline (337 Ml) and ETBE (226 Ml). The government has already granted additional quotas with respect to 2007, of 380 Ml in 2008 and 530 Ml in 2009-2010, which is likely to significantly boost the production in the years to come. These figures are explained by the commitment of the French government to reach a share of 7% biofuels (according to the energy content) in 2010. It is worth noting that this target exceeds that of the EU (i.e. 5.75% in 2010).

In a press release of 2 April 2009, the association eBio (European Bioethanol Fuel Association) provides a complete summary of the bioethanol situation in the EU. The main points are listed below:

After a rather moderate growth in 2007 (+11% with respect to 2006), European fuel-ethanol production increased considerably in 2008. This strong growth came to a time where the EU legal framework for biofuels was under discussion and biofuels were under critique. Total EU production in 2008 was an estimated 2.8 billion litres, up from 1.8 billion litres in 2007, i.e. a significant increase of 56%.

Most of this increase is due to the growth in French production, which almost doubled to 1 billion litres in 2008 (up from 539 million litres in 2007). This makes France the biggest EU ethanol fuel producer in 2008, followed by Germany that also expanded its output to 568 million litres (i.e. +32% with respect to 2007). Third biggest producing country was Spain with 317 million litres. It is worth noting that the production declined in 5 out of 17 producing Member States. Fuel-ethanol production capacity came on stream in Belgium, although with limited production. Finland resumed its production, while in Austria fuel-ethanol was produced for the first complete year. The total number of fuel-ethanol producing Member States reached 17.

The year 2008 was also a record year in terms of imports. Total imports are estimated to have reached almost 1.9 billion litres in 2008, i.e. an increase of 400 million compared to 2007. About 75% of the ethanol came from Brazil only.

Tableau : Evolution of bioethanol production in the EU-27

The production of fuel-ethanol in the EU has grown significantly over the past 7 years, reaching a 2'816 Ml in 2008, i.e. an average increase of +30% per annum over the period 1992-2008. The figures presented here are those of eBio. Other sources include UEPA and the Biofuels Barometer, published by EurObserv'ER.