Cellulosic Ethanol Market

Cellulosic Ethanol Market Study by Energy Crops, Agriculture Waste, Municipal Solid Waste, and Forest Residue Feedstock for Transportation and Industrial Application from 2024 to 2034

Analysis of Cellulosic Ethanol Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Cellulosic Ethanol Market Outlook (2024 to 2034)

Rising need for renewable and sustainable energy sources is set to fuel worldwide sales of cellulosic ethanol from US$ 1.36 billion in 2024 to US$ 61.68 billion by 2034. The global cellulosic ethanol market is forecasted to register a CAGR of 46.4% across the forecast period (2024 to 2034).

Sustainability is the notable cellulosic ethanol market trend. The key revenue drivers influencing the cellulosic ethanol demand are the growing prices for conventional fuels, carbon dioxide emissions from conventional fuels that are contributing to global warming, and the usage of coal for energy production that can cause the combustion of cancer-causing chemicals such ethyl benzene, xylene, toluene, and benzene, which can be substituted with cellulosic ethanol for traditional fuels.

Cellulosic ethanol production is also generating jobs, supporting farmers, installing new gas pumps, and utilizing water-saving plant layouts. Additionally, the country producing cellulosic ethanol has the ability to generate cellulosic ethanol on-site, thus saving money on crude oil exports.

Government regulations across the globe that call for increasing the production of cellulosic ethanol for use as a fuel, gas, feedstock, power source, and for medical purposes are pushing the cellulosic ethanol market growth. As cellulosic ethanol consumption rises, the likelihood that items made from it will be utilized as a fuel in the future is expected to grow. The increasing need for fuel in high-potential economies is set to create lucrative growth opportunities for the cellulosic ethanol suppliers.

North America is one of the largest fuel consumers globally; however, it is also planning to sizeably reduce its crude oil dependency. Owing to this, the countries in the region are focusing on the production of ethanol.

  • The North American cellulosic ethanol market size is projected to reach US$ 10.79 billion by 2034.
  • East Asia is estimated to account for 25.6% of the global cellulosic ethanol market share in 2024.
Report Attributes Details
Cellulosic Ethanol Market Size (2024E) US$ 1.36 Billion
Forecasted Market Value (2034F) US$ 61.68 Billion
Global Market Growth Rate (2024 to 2034) 46.4% CAGR
South Korea Market Value (2034F) US$ 2.10 Billion
Energy Crop Feedstock Demand Growth (2024 to 2034) 46.7% CAGR
Key Companies Profiled
  • Novozymes
  • Alliance Bio-Products
  • Dow
  • Beta Renewables SpA
  • Aemetis, Inc.
  • Enerkem
  • Shandong Longlive Bio-Technology
  • Poet-DSM Advanced Biofuels LLC
  • BlueFire Renewables Inc.
  • GranBio
  • DuPont
  • Biochemtex SpA
  • Fiberight
  • BP PLC
  • Abengoa

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Which Aspects are Influencing Consumption of Cellulosic Ethanol?

“Growing Concerns about Global Warming Driving Production of Bioethanol from Cellouse”

Initiatives for cellulosic ethanol are majorly driven by the growing concern over anthropogenic climate change, which is spurred by evidence of rising temperatures and their human causes. Today, there is a growing need to take some steps to minimize greenhouse gas emissions, and so for numerous countries across the globe is heavily relying on cellulosic ethanol solutions to mitigate the release of such hazardous gases leading to drastic climate change.

Use of cellulosic biofuel leads to substantial reduced emissions compared to the use of petroleum-based fuels for transportation, electricity, heat, and other purposes. Concerns about climate change are playing a significant role in increasing the cellulosic ethanol production. Ethanol and biodiesel are increasingly being used in transportation.

Modern biomass burning techniques or the use of biofuels in engines could reduce the controlled emissions associated with the use of gasoline. Additionally, a dependable method of trash disposal is provided by the production of biofuels from garbage, which decomposes municipal solid waste.

Growing cellulosic ethanol consumption is supporting the agricultural sector and farm incomes. The growing fuel need is further boosting the biofuel consumption across the globe. In regions with the presence of robust agricultural activities, reviving agriculture as a source of cellulosic ethanol feedstock is seen as a solution to the dual problems of excessive agricultural production and declining worldwide market prospects.

Decision-makers are greatly influenced by the possibility to increase agricultural earnings while decreasing taxes and subsidies. Several high-potential countries are being targeted for biofuel production to support rural development and energy security. Many OECD nations, particularly those in Europe and North America, have been embracing natural energy sources to support agriculture since long.

Are Raw Materials Used for Ethanol Production Disturbing Biodiversity?

“Feedstock Production Initially Giving Rise to Greenhouse Gases”

Many of the plants used as feedstock for cellulosic ethanol production can either be consumed directly by people or utilized indirectly as animal feed. Diverting these crops for the production of cellulosic ethanol may increase agricultural activity, pollution, and food costs. Cellulosic feedstock might compete with the food sector for resources such as land, water, and fertilizer.

Cellulosic ethanol production may therefore result in fewer unexpected developments. By increasing the amount of carbon dioxide released into the atmosphere and changes to land use practices may cause a rise in greenhouse gas (GHG) emissions. Cellulosic ethanol feedstock grown in tropical deforestation, such as soybeans in the Amazon and palm oil in Southeast Asia, is primarily responsible for high GHG emissions. Thus, the use of cellulosic feedstock can increase food costs, generate greenhouse gases, and lead to biodiversity damage, further hampering the ethanol production cycle to some extent.

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How are New Companies Achieving Success in This Newly Competitive Space?

“Focus of Product Innovations to Increase Market Reach”

New companies eager to enter cellulosic ethanol production should focus on the use of such feedstocks that may not cause harm to environment such as pollution, GHG emission, or global warming. New cellulosic ethanol producers should invest heavily in research and development activities to produce a sustainable fuel source.

LanzaJet a United States-based start-up is focused on converting waste in to biofuel. Agricultural residue, municipal waste, biomass, and manufacturing off-gas are some of the types of wastes used by LanzaJet to develop bioethanol. This company’s patented ‘Alcohol-to-Jet Technology’ is contributing to the production of commercial scale aviation fuel.

Top Biofuel Startups

  • LanzaJet (United States)
  • Vertex Bioenergy (Spain)
  • Ethtec (Australia)
  • C3 Biotech (United Kingdom)
  • Global Yeast (Brazil)

Country-wise Analysis

What’s Driving Consumption of Cellulosic Ethanol in the United States?

“Supportive Government Policies Fuelling Sales of Bioethanol Fuel”

Attribute United States
Market Value (2024E) US$ 179.9 Million
Growth Rate (2024 to 2034) 46% CAGR
Projected Value (2034F) US$ 7.93 Billion
  • According to Statista report 2022, the United States accounted as the world's leading producer of bioethanol with production amounting to 1,627 petajoules.

The United States government have supportive policies for the consumption of cellulosic ethanol. If landowners and operators plants, cultivate and supply biomass feedstock crops to facilitate the production of advanced biofuels, may get the financial benefit from the Biomass Crop Assistance Program (BCAP; Section 9010). In addition to a 50% reimbursement of the expenditures related to establishing a biomass feedstock crop, qualified feedstock producers can receive annual payments for up to five years for herbaceous feedstock and up to 15 years for woody feedstock.

  • The Bio-refinery Assistance Program (Section 9003) provides loan guarantees to make it possible to develop, build, and retrofit commercial-scale bio-refineries that produce advanced biofuels.
  • The Bioenergy Program for Advanced Biofuels (Section 9005) Qualified advanced biofuel producers may be paid to stimulate increased production of advanced biofuels, or fuels made from renewable biomass other than maize kernel starch.

Which European Country is Benefitting Cellulosic Ethanol Producers?

“Presence of Key Market Players in United Kingdom”

The United Kingdom’s first cellulosic plant was started in 2008. TMO Renewables Ltd. is among the first to come up with a new technique for converting various biomass to biofuel. Additionally, the Vivergo Fuels site in Hull was set to re-open after an announcement in 2021 by the State for Transportation of E10 gas at gas stations throughout the United Kingdom.

What is the Sales Outlook for Cellulosic Ethanol in Japan?

“Widespread Use of Bioethanol Contributing to Demand Growth”

Attribute Japan
Market Value (2024E) US$ 109.3 Million
Growth Rate (2024 to 2034) 44.6% CAGR
Projected Value (2034F) US$ 4.37 Billion

Japan has been producing bioethanol since 2007, when BioEthanol Japan, the world's first company to produce cellulosic ethanol from wood construction waste, began commercial production in its facility in Osaka Prefecture.

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Category-wise Analysis

Which is the Popular Feedstock for Cellulosic Ethanol Production?

“Increasing Need to Reduce Presence of Municipal Solid Waste Driving Use in Bioethanol Production”

Attribute Municipal Solid Waste
Segment Value (2024E) US$ 349.2 Million
Growth Rate (2024 to 2034) 46% CAGR
Projected Value (2034F) US$ 15.36 Billion

Municipal solid waste is becoming a major feedstock source for cellulosic ethanol production. The prime reasons behind this are the major abundance of municipal solid waste, its low cost, and the issue to solve this dangerous waste.

The broad range of lignocellulosic biomass and other feedstocks such as starch and sugar crops are primarily used for ethanol production, however their excess use may lead to competition in food supply sector. This is further giving rise to the use of municipal solid waste in bioethanol production.

Why is Industrial Application of Cellulosic Ethanol Gaining Traction?

“Strict Environmental Regulations Pushing Use of Bioethanol Fuel Source in Various Industries”

Attribute Industrial Application
Segment Value (2024E) US$ 945.2 Million
Growth Rate (2024 to 2034) 46.4% CAGR
Projected Value (2034F) US$ 42.68 Billion
  • According to study by Fact.MR, a market research and competitive intelligence provider, the industrial application of cellulosic ethanol is anticipated to hold 69.2% of the global market share by 2034.

Increasing industrial activities across the globe are contributing to high fuel consumption. The growing use of petroleum-based fuel is increasing the pollution danger and global warming. Furthermore, strict regulations on pollution and use of renewable fuel sources are fuelling the consumption of biofuels.

Competitive Landscape

Key players in the cellulosic ethanol market are employing various organic and inorganic marketing approaches such as product innovations, collaborations, mergers, and global expansion to increase their earnings and position. Leading companies are also using customer centric and digital marketing approaches to appeal a wider consumer base.

  • In January 2022, Clariant announced its first commercial cellulosic ethanol production in its Romania-based plant.

Key Segments of Cellulosic Ethanol Market Research

  • By Feedstock :

    • Energy Crops
    • Agriculture Waste
    • Municipal Solid Waste
    • Forest Residue
    • Others
  • By End Use :

    • Cellulosic Ethanol Application in Transportation
    • Industrial Application of Cellulosic Ethanol
  • By Region :

    • North America
    • Latin America
    • Europe
    • East Asia
    • South Asia & Oceania
    • Middle East & Africa

- FAQs -

How big is the cellulosic ethanol market in 2024?

The global cellulosic ethanol market is estimated at US$ 1.36 billion in 2024.

How much is the projected value of the cellulosic ethanol market for 2034?

The market for cellulosic ethanol is projected to reach US$ 61.68 billion by 2034.

What is the estimated cellulosic ethanol market growth rate?

Sales of cellulosic ethanol are foreseen to rise at a CAGR of 46.4% from 2024 to 2034.

What are the projections for cellulosic ethanol in South Korea?

Demand for cellulosic ethanol in South Korea is forecasted to increase at a CAGR of 48.2% through 2024.

What is a key application area of cellulosic ethanol?

Demand for cellulosic ethanol in industrial application is projected to reach a market value of US$ 42.68 billion by 2034.

Who are the leading producers of cellulosic ethanol?

Some of the leading market players include GranBio, DuPont, and Novozymes.

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