Production of bioethanol in the UE

Bioethanol is the most produced biofuel worldwide with almost 74 billion litres in 2009. This figure is mainly due to the United States (54%) and Brazil (34%). In the United States, the RFA (Renewable Fuel Association) estimated bioethanol production to over 40 billion litres in 2009, mostly from corn. According to Unica (União da Agroindústria Canavieira), Brazil reached an output of almost 25 billion litres (including more than 4 billion litres for exports) in 2009, obtained mainly from sugarcane. With a production of 3.7 billion litres in 2009, 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 2009, the production of fuel-ethanol in China exceeded 2 billion litres, 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 2009.

Table : Production of fuel-bioethanol in the EU-27 and Switzerland in 2009

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 2009, the production of fuel-bioethanol amounted to 3'703 Ml, i.e. an increase of 30% compared to 2009.

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 (2003-2009)

Ces chiffres traduisent notamment l'engagment de la France d'atteindre une part des biocarburants de 7% (selon le contenu énergétique) en 2010 et 10% en 2015. A noter que l'objectif national français dépasse celui de l'UE pour 2010 (soit 5,75%) et anticipe celui pour 2020. France confirms in 2009 its position at the forefront of fuel-bioethanol production in the EU. Like biodiesel, bioethanol in France is partially exempted from the tax on domestic consumption (TIC) in order to compensate the higher production cost of biofuels with respect to fossil fuels. The tax reduction is granted to biofuels from production units having received a production agreement upon Community tender (French only), i.e. the equivalent in 2009 and 2010 of 1'092 Ml for bioethanol, divided between direct incorporation to gasoline (867 Ml) and ETBE (225 Ml). 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 and 10% in 2015. It is worth noting that these national targets exceed that of the EU for 2010 (i.e. 5.75%) and anticipates the one for 2020.

In a press release of 28 July 2010, 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 strong growth in 2008 (almost 60%) European fuel ethanol production continued to increase considerably in 2009 by 31%. This gives a clear signal to all doubters that European bioethanol is here to stay and to fulfil its increasingly important role in curbing greenhouse gas emissions and in contributing to energy security.

Total EU production in 2009 was an estimated 3.7 billion litres, up from 2.8 billion litres the previous year. This represents a significant increase of 31%. Several countries increased their ethanol fuel production considerably in 2009. The biggest producer however is still France with an annual output in 2009 of 1'250 Ml. This represents an increase of 25% compared to 2008 (1'000 Ml). Second largest producing country is Germany, which constantly increased its production by 32% to 750 Ml (568 Ml in 2008). Third biggest producer remained Spain with 465 Ml (+46% compared to 2008). In 6 out of 18 producing Member States, the production declined while the rest could either increase their production (10) or keep it steady.

In 2009, two countries more than doubled their fuel ethanol output, namely Austria (+102%) and Sweden (+124%), which are now ranking as fourth and fifth largest producer respectively.

Substantial growth can be noticed also on the consumption side. Total EU consumption of fuel ethanol in 2009 amounted to an estimated 4.3 billion litres (up from 3.5 billion litres in 2008). This constitutes a considerable increase of 23%. Biggest consuming country was Germany (1'143 Ml) followed by France (798 Ml) and Sweden (377 Ml). Compared to the overall size of its fuel sector, Sweden thus still is spearheading the relative ethanol fuel consumption.

Brazil is still the most important third country supplier of ethanol for fuel purposes. Due to lower ethanol production, exports from Brazil in 2009 were reduced by around 200 Ml compared to 800 Ml of fuel ethanol exported to the EU in 2008. However, 2009 showed a strong increase in ethanol imports from Nicaragua, Costa Rica and for the first time, the United States. As EU trade statistics do not distinguish between ethanol imports by end-use, it is not possible to tell how much precisely of all imported ethanol was used in the fuel stream.

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 3'703 Ml in 2009, i.e. an average increase of +30% per annum over the period 1992-2009. The figures presented here are those of eBio. Other sources include UEPA and the Biofuels Barometer, published by EurObserv'ER.