In 2008 world ethanol production is likely to top 77 billion litres compared with 64.1 billion litres last year. The United States will continue to be the market leader. Production in Brazil will continue to rise strongly. The outlook for growth rates in other parts of the world will also remain strong.
Brazil – Sugar based ethanol
The largest and most successful biofuel program belongs to Brazil. Production of ethanol fuel is made from sugar cane. In 2006, 20 per cent of Brazil’s ethanol consumption was used by their transport sector.
The two leaders in global ethanol production are Brazil and The United States. Together they account for 70 per cent of the world’s ethanol production of which 90 per cent is used in fuel. In 2006, Brazil produced 16.3 billion litres of ethanol from sugar based feestock.
In 1977, the Government introduced a mandate where all light vehicles had to run on E20 (20 per cent ethanol blended with petrol). Today this blend may vary between 20 percent to 25 per cent. There are 3 million cars that run on anhydrous ethanol (100%) and a further 5 million that are flexible fuel vehicles (FFV). FFV allows the use of ethanol and petrol to be used interchangeably. Since the introduction of flexible fuel vehicles in 2003, these vehicles became a commercial success.
The United States – Grain Based ethanol
The United States produces more ethanol than any other country in 2006 the United States produced 19.8 Billion litres of ethanol mainly from corn feedstock. The majority of vehicles in the U.S. run on ethanol blends of 10 per cent. By 2006, vehicle manufacturers were selling FFV that can use ethanol blends up to 85 per cent (E85). There are approximately 6 million E85 vehicles in the U.S.
Europe
The largest consumption of ethanol fuel in Europe exists in Germany, Sweden, France and Spain. In 2006, Europe produced abput 90 per cent of its consumption. The production of ethanol fuel consumption in Europe is as follows:
Since EU legislation there is a requirement for non mineral origin to have a minimum of 5.75% of total fuel consumption by 2010. Germany has an advanced biofuel infrastructure which offers E85. In Sweden all service stations must provide at least one alternative fuel option. Sweden has the greatest number of ethanol fuel service stations in Europe.
Australia
In Australia, the most common ethanol blend is E10 (10% ethanol, 90% petrol), this is known as E10. E10 is available mainly on the East coast of Australia. The oil majors (Shell, BP, Caltex and Mobil) as well as United Petroleum all sell ethanol blended fuels.
Recently United Petroleum have introduced sites in Sydney and Melbourne that supply E85. Currently only the SAAB Biopower model can use this ethanol fuel blend.