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Summary
The global bioethanol market, valued at $83.4 billion in 2023, is anticipated to grow at a CAGR of 6.6% through 2028. Bioethanol, primarily used as a renewable fuel blended with gasoline, is seeing increased demand due to technological advancements and a push towards greener energy sources. The United States, Brazil, and Germany are the top producers, with France ranking fourth globally, contributing 5% to the world's production. In France, SP95-E10, which contains up to 10% bioethanol, became the most consumed petrol in 2022, representing 56% of total petrol consumption. Meanwhile, the use of "Flex Fuel" vehicles and bioethanol conversion kits is on the rise, with 85,000 kits sold in 2022, tripling the sales from the previous year. However, France faces challenges, as it heavily relies on imports mainly from European countries, with a negative export balance in 2021 when it imported 6.1 million hectoliters of undenatured ethyl alcohol, mostly from European ports, and exported 6.7 million hectoliters, marking a 23% decrease from 2020. The regulatory environment supports this growth through measures such as the Energy Transition Law for Green Growth, which aligns with the Paris Agreement by promoting renewable energies, including advanced biofuels, to reduce greenhouse emissions and dependence on fossil fuels.
The Growing Appetite for Bioethanol in France
In recent years, France has witnessed an upward trajectory in the demand for bioethanol, a renewable energy source that aligns with global sustainability ambitions and local legislative goals. As the fourth-largest producer in the world with over 2 million tons of production annually, France has made vigorous strides toward embedding bioethanol in its energy mix, especially within the transportation sector. The French market for bioethanol, while intricate, can be estimated to hold a valuation of approximately $4 billion. This estimate comes from France's 5% contribution to the global market, which hovers around the $83 billion mark.
With bioethanol accounting for a significant chunk of biofuels consumed in gasoline engines, its footprint in the French fuels landscape is quite notable. SP95-E10, the fuel comprising up to 10% bioethanol, has emerged as a crowd favorite in France. Its consumption shot up to account for over 55% of all petrol consumption by 2022, a leap from just over 50% in the previous year. This surge reflects a broader trend: the volume of bioethanol production in France has skyrocketed, with recent figures peaking at a record high and on a trajectory to surpass this further.
This burgeoning demand is being driven by numerous factors, including the burgeoning popularity of "Flex Fuel" vehicles and bioethanol kits. These kits, which are substantial for the market, allow even conventional vehicles to adapt to bioethanol fuels. By 2022, sales of these kits had tripled compared to the previous year, indicating a robust consumer inclination toward alternative fuels. Additionally, France has seen a considerable 67% year-on-year increase in the fleet of E85-compatible vehicles.
Notwithstanding the uptick in demand, France still grapples with the biochemical impacts of bioethanol. Concerns linger around potential vehicle degradation risks, loss of warranties, reduced performance, and a parallel environmental debate about the sustainable production of the raw materials required for bioethanol manufacture. Regulation-wise, France is actively shaping the bioethanol market. Legislation impels a steady increase in renewable energy use, and the country has a progressive biofuels plan that mandates a minimum incorporation of biofuels into traditional fuels. In line with European objectives, this plan advocates for an incorporation rate of between 9% and 10% by 2023, reflecting an incremental growth from about 7% in the previous years. In the sphere of international trade.
Key Market Players Shaping the Bioethanol Landscape
The bioethanol market is a dynamic and rapidly evolving space, with numerous players participating across various segments of the value chain. From raw material providers to end manufacturers, here's a closer look at some of the prominent companies leading the charge in the bioethanol industry:
Raw Material Powerhouses and Production Unit Innovators
- Maguin: A titan in the equipment manufacturing sector, Maguin is known for its advanced machinery and technology solutions that are critical for the initial stages of bioethanol production.
- TechnipFMC: This player has established itself as a leader in the design and construction of production units, contributing to the infrastructure that underpins the entire bioethanol market.
- Vinci Energies : With a global presence, Vinci Energies brings expertise in energy efficiency and project management, installing systems that support the sustainable production of bioethanol.
- AtkinsRealis : This company plays a vital role in setting up the production facilities where bioethanol is manufactured, ensuring that the process meets industry standards and sustainability criteria.
Bioethanol Giants and Agricultural Champions
- Tereos Groupe : As a major producer in the bioethanol industry, Tereos delivers biofuel that powers transportation and contributes significantly to reducing carbon emissions.
- Cristal Union : Another heavyweight in the production of bioethanol, Cristal Union utilizes agricultural crops like sugar beets to create eco-friendly fuel options.
- Bioénergie du Sud-Ouest (Vertex Bioenergy) : This regional producer highlights the importance of localized bioethanol production, showcasing the potential for sustainable energy within smaller markets.
Automotive Innovators Embracing Flex Fuel Technology
- Ford : Ford not only manufactures iconic vehicles but has also delved into producing Flex Fuel automobiles that can efficiently operate on varying ethanol blends. Renault : Known for its robust lineup of cars, Renault has taken significant strides towards Flex Fuel technology, offering consumers vehicles that are more eco-conscious.
- Volvo Group : Volvo has long been synonymous with safety and innovation, and their involvement in Flex Fuel vehicles further cements their commitment to sustainable automotive advancements.
- Stellantis (Peugeot, Citroën, Jeep, Opel) : The multi-brand conglomerate Stellantis has several of its marques producing vehicles that support bioethanol usage, leading to a more diversified and eco-friendly car market.
- Volkswagen Group : The Volkswagen Group's leap into Flex Fuel technology with models like Golf Multifuel illustrates
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Detailed content
Inforamtion
- Number of pages : 30 pages
- Format : Digital and PDF versions
- Last update : 16/10/2023
Summary and extracts
1 Market overview
1.1 Market overview and definition
Bioethanol is a renewable, liquid fuel for gasoline engines, produced from biomass, i.e. plant matter. There are different types of bioethanol, depending on the raw material used: corn, beet, rapeseed... There are also different generations of bioethanol, with the first generation using raw materials that are also used for human consumption, thus competing with our vital needs. The current challenge is to develop the 2ᵉ and 3ᵉ generations of bioethanol in order to resolve this conflict of use.
Bioethanol is overwhelmingly used as a fuel, blended into gasoline with fossil fuels. There are three types of fuel using bioethanol on the French market:
- sP98 and SP95 containing up to 5% bioethanol, for petrol and flex-fuel cars;
- sP95-E10 containing 10% bioethanol, for petrol and flex-fuel vehicles;
- superethanol-E85 (or simply E85), containing 65% to 85% bioethanol, for flexible-fuel cars only.
Global bioethanol production is on an upward trend, and the market is valued at $83.4 billion in 2023. It is expected to grow at a CAGR of 6.6% until 2028. The world's leading producers are the United States, Brazil and Germany. Global production is set to rise sharply over the next few years, as government regulators set ever-higher incorporation rates in fuels for sale on the market. At the same time, demand for ethanol is driven by technological advances and increased research. The lower production costs of these energy sources should lead to increased consumption.
France, a 4ᵉ world producer, is a major European player. It is the main supplier of the raw materials used in bioethanol production, but also relies heavily on imports, particularly from European countries. Most of its production is destined for domestic consumption, and bioethanol-based fuels are becoming increasingly popular, as in the case of SP95-E10, which accounted for 56% of petrol consumed in France in 2022.
The bioethanol sector is therefore set to expand significantly in the years ahead, and the growing popularity of "Flex Fuel" vehicles and bioethanol kits, making conventional vehicles compatible with new fuels such as E85, are further growth factors to be taken into account.
1.2 The global bioethanol market
The global bioethanol market is estimated at $**.* billion in ****, and is expected to grow at a CAGR of *.*% to ****.
Global bioethanol market size World, **** - ****, in $ billions Source: ****
Against a backdrop of depleting energy resources and the promotion of renewable energies, notably through the United Nations Sustainable Development Goals(***), the biofuels ...
1.3 The French bioethanol market
It's extremely difficult to calculate the size of the bioethanol market in France. This is because ethanol is incorporated into a variety of fuels sold at different prices, and is produced from many different raw materials, the most widely used of which is corn.
Breakdown of raw materials used in ethanol ...
1.4 Significant imports
France consumes most of the bioethanol it produces, and its export balance varies from year to year, being positive in **** but negative in ****.
Volume of bioethanol consumed and export balance France, **** - ****, in thousands of hL Source: ****
In ****, domestic consumption of bioethanol, whether produced locally or imported and sourced from local ...
2 Demand analysis
2.1 Bioethanol, increasingly present in French fuels
Bioethanol is used in France in blends with commercial gasolines, notably in SP**-E* (***).
Source: ****
ETBE (***) is a chemical compound produced from bioethanol and isobutene. It is designed to be incorporated into commercial gasolines up to a maximum :
Source: ****
ETBE (***) has historically been the preferred method for incorporating ethanol into gasoline, ...
2.2 Bioethanol-based gasolines, a fast-growing consumer segment
SP**-E**, also known as "E**" (***), accounted for **% of total gasoline consumption, up from **.*% in ****. By December ****, this figure had risen to **.*%, with SP**-E** recording a slight increase in fuel consumption of between *% and *% over SP**. However, its price per liter is a few euro cents lower[***].
Market share of ...
2.3 A conflict over the use of raw materials
The bioethanol industry systematically supplies two markets from its agricultural production: the food and feed markets (***) or beet, systematically generates animal feed. Indeed, each kilo of bioethanol produces an average of * kg of protein-rich feed. More precisely :
* kg of cereals yield * kg of ethanol, * kg of spent grain (***) and * kg ...
2.4 Demand driven by Flex Fuel engines and bioethanol kits
Many vehicles are not originally compatible with the use of bioethanol as a fuel. Today, however, there's a solution - the bioethanol kit- that makes these vehicles compatible with these new fuels.
Vehicles fitted with "Flex Fuel" engines are those that are directly compatible with bioethanol, so bioethanol kits are not ...
3 Market structure
3.1 Value chain
Source: ****
The value chain above summarizes the main methods used to produce bioethanol, right up to its incorporation into gasoline. Corn, wheat and beet are in fact the three main raw materials used in making bioethanol (***). There are other techniques for producing bioethanol, and there is a wide variety of players ...
3.2 How the biofuel industry works
As bioethanol is a product of the biofuels sector, we're going to detail the different segments of this sector and the professions encountered within it.
TheInterprofession des huiles et protéines végétales(***), founded in ****, represents the vegetable oil and protein sector. Its aim is to promote sustainable agriculture that ...
3.3 Overview of the bioethanol sector
The main mission of the Collective du bioéthanol, an organization represented by theAssociation Interprofessionnelle de la Betterave et du Sucre(***), is to disseminate information about the bioethanol industry. This mission is aimed not only at professionals in the sector, but also at the general public[***].
France is structured around large ...
3.4 The gasoline sector in France
In ****, sales of road fuels reached **.* million m*, an increase of *.*% on the previous year 's figure of **.* million m*.the share of petrol in this total increased from **.*% in **** to **.*% in ****. This increase of almost *% underlines a slight growth in the use of gasoline, to the detriment of diesel, in ...
4 Offer analysis
4.1 The different generations of bioethanol
Bioethanol is one of the biofuels produced from biomass, which includes raw materials of plant, animal or waste origin. Biofuels, derived from biomass, are used for energy in transport and heating. Mainly used as additives to fossil fuels, they are divided into three generations based on biomass origin and transformation processes. ...
4.2 Advantages and disadvantages of bioethanol
The use of biofuels blended with traditional fuels in the transport sector aims to meet several challenges:
reducing greenhouse gas emissions : the CO* emitted when bioethanol is burned in engines is of atmospheric origin, captured and absorbed by plants as they grow. Moreover, bioethanol does not emit particles during combustion[***]; anticipate ...
4.3 Bioethanol, an economical fuel
The bioethanol sector has certainly seen an increase in agricultural costs and energy prices, particularly gas. However, despite these increases, superethanol E** maintains its main advantage: its pump price remains competitive with other fuels. The table below illustrates this, with average prices for a full tank in October ****:
Source: ****
E** is ...
5 Regulations
5. Current regulations
France's Energy Transition Law for Green Growth, enacted on August **, ****, sets ambitious goals for reducing the use of fossil fuels. It provides for an increase in the proportion of renewable energies, particularly advanced biofuels, in road and air transport, in order to achieve these goals. This measure also contributes to the ...
6 Positioning the players
6. Market segmentation
- APM Maersk
- Ford
- Renault Groupe
- Volvo Group (Renault Trucks et Volvo Trucks)
- Stellantis (Groupe PSA et Fiat)
- Volkswagen Group
- TechnipFMC
- Vinci Energies
- Tereos Groupe
- Cristal Union
- Bioénergie du Sud-Ouest
- AtkinsRéalis
- Maguin
List of charts
- Size of the global bioethanol market
- Main bioethanol-producing countries
- Breakdown of biofuels in the gasoline sector
- Volumes of ethanol produced
- Breakdown of raw materials used in ethanol production
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Latest news
Stellantis takes a radical turn in China. - 09/12/2023
- Signature of a strategic partnership with Chinese automotive start-up Leapmotor.
- Stellantis will acquire a stake of around 21% in the company for a total of 1.5 billion euros.
- The two companies will also set up a joint venture, Leapmotor International, 51% owned by Stellantis.
- Based in the Netherlands, it will "have exclusive rights to manufacture, export and sell Leapmotor products outside China"
- The Leapmotor International joint venture is targeting 500,000 sales outside China by 2030.
- Deliveries from the Leapmotor International joint venture are scheduled to begin in the second half of 2024.
- Stellantis terminated its joint venture with Guangzhou Automobile Group (GAC) in July 2022.
- Stellantis sold three local plants to the Chinese group Dongfeng.
A hydrogen pick-up: Stellantis' answer to Tesla's Cybertruck - 06/12/2023
- Stellantis aims to launch a hydrogen version of a RAM pickup in the USA in late 2026 or early 2027.
- The hydrogen-powered pickup promises a recharge time of less than ten minutes.
- Stellantis also plans to produce a hydrogen-powered utility vehicle at "industrial volumes" in Hordain, northern France, from next year.
- Toyota, another major manufacturer, presented a prototype Hilux that runs on hydrogen.
- Rivian, a new manufacturer, has already started selling its electric van, backed by Amazon and Ford.
Morbihan: Axians Cloud sets up in Larmor-Plage - 09/11/2023
- The Axians Cloud group, Vinci Energies' brand dedicated to telecommunications infrastructures and digital technologies
- Axians Cloud has a workforce of 4,500 and sales of 900 million euros by 2022.
- Axians already has ten offices in Brittany.
- The company's sales growth is around 20%.
Stellantis steps up a gear in the commercial vehicle segment - 24/10/2023
- Stellantis presented twelve new commercial vehicles in four different brands.
- Commercial vehicles account for a third of Stellantis sales, or 60 billion euros.
- Stellantis intends to double its sales of commercial vehicles by 2030. Stellantis has a 31% market share of commercial vehicle sales in Europe and 28% in South America. The group sold 1.6 million commercial vehicles worldwide last year. Stellantis aims to generate sales of 5 billion euros from connected vehicle services by 2030.
Stellantis aims to become world leader in utility vehicles - 24/10/2023
- Stellantis is number one in Europe and aims to become number 1 worldwide in the commercial vehicle market.
- Stellantis market share in Europe: 31%
- Twelve launches planned for Citroën, Peugeot, Fiat and Opel.
- Range of electric versions: from 330 kilometers for the minivan, to 420 for the large van.
- Stellantis has 15 factories worldwide.
- Sales of Stellantis vans in 2022: 1.6 million (out of a total of 5.8 million vehicles sold).
- Commercial vehicles account for 60 billion euros, a third of Stellantis net revenues
- Stellantis aims to double sales of light commercial vehicles by 2030.
- Stellantis' target for 2030: 40% of its LCV sales to be electrically powered.
- amazon and Merchants Fleet have ordered 12,500 electric vehicles
Closure of the Tereos Haussimont plant in the Marne department - 07/09/2023
- Tereos, the agri-food giant, is planning to close its potato starch processing plant in Haussimont (Marne), which employs 62 people.
- This is the third Tereos site to be closed in the space of a few months.
- The other two are the Escaudoeuvres sugar factory (Nord) and the Morains distillery (Marne).
- France currently has just two starch plants: Haussimont and Vecquemont (Somme, Roquette group).
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the bioethanol market | France
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