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Cellulosic Ethanol Market Outlook, Industry Trends, Growth Opportunities

Author : Rahul Sankrityayan | Published Date : 2019-03-29 

The research report scrutinizes the global Cellulosic Ethanol industry from 360 degree perception, taking manifold facets into consideration including segmentation, key developments, market overview, market growth and dynamics, market trends and future outlook, market opportunities, potential investment segment, competitive landscape etc.

Cellulosic ethanol is a bio-fuel, produced from agricultural residues including corn stover, wheat straw and other non-edible parts of plants, wood and grasses. Panicum virgatum and wood chips of tree are the byproducts which are used for ethanol production. Other sources of ethanol production are corn, sugar cane, switchgrass and miscanthus. High production rate from these sources are driving the product demand.

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Low-percentage ethanol-gasoline blend can be efficiently used in conventional spark-ignition engines without making any technical changes to engine. Hybrid-fuel vehicles can run on even higher concentration mixture. Ethanol’s ability to oxidize into acetic acid when on contact with material used in engine may corrode engine surface. High latent heat of vaporization and demixing issue with hydrocarbon causes cold engine and are restraints to market growth. However, ethanol biofuels are blended with petroleum diesels to overcome this drawback which is likely to boost product demand.

Global bio-fuel market sized up to 1,600 million barrels and expected to grow at 10% CAGR during 2016-2024. Government assistance including subsidies to producers and funding for pre-commercial plants along with mandating biofuel usage may favor industry growth.

Large scale production units need to have technological advancements owing to slow growth rate due to high initial cost and production complexities. Huge investments by research institutes and big corporate houses is likely to drive cellulosic ethanol market size.

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Availability of feedstock is a major growth driver for cellulosic ethanol market. However, challenges exist in harvesting, storage and transportation of low productive conventional raw crops due to its low material densities and moisture level. Harvest capacity and transportation density are major limitations for biomass harvest and logistics to supply demand center. Investments need to be made in harvesting and transportation systems to improve biomass harvest field efficiency and reduce operational cost.

Cellulosic ethanol is produces agricultural biomass including corn cobs, perennial grasses, and wheat straws and forest biomass such as wood chips. Fluctuating raw material prices can play a deterrent in cellulosic ethanol market growth.  Delivery prices and cost associated with harvesting and delivering raw materials decides producer’s profitability. Fluctuations are high due to seasonality of such plants and hence affects the product price.

Clariant, a leading specialty chemical company has developed an alternative source of energy like cellulosic ethanol to combat with issues concerning energy sector and reduce oil dependency. Sunliquid is an efficient process developed by the company to convert agricultural residues into eco-friendly biofuels.

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Asia Pacific driven by India, Japan, South Korea and China cellulosic ethanol market size may witness strong gains. Aiming for a sustainable energy development these countries are emphasizing on developing bio-fuel and investing huge in product development may propel industry growth. Growing environmental concerns such as pollution caused by burning non-renewables like gasoline, coal, diesel and natural gas may act as another contributing factor towards product demand in this region.

Europe led by France, Italy and Germany cellulosic ethanol market is anticipated to witness strong gains owing to supporting regulatory norms and policies. Increasing R&D spending to develop biochemical route to produce ethanol should stimulate industry growth.

Global cellulosic ethanol market is slightly fragmented. Some key players in this market are British Petroleum, DuPont Industrial Biosciences, Beta Renewables, Novozymes, POET-DSM, INEOS Bio and Inbicon GranBio.

About Author

Rahul Sankrityayan

Rahul Sankrityayan

Fortified with a post-graduate degree in Computer Applications, Rahul Sankrityan writes for Fractovia, where he pens down news and articles spanning across segments of technology industry that excite him on a day-to-day basis. Rahul comes with a rich experience in technical field as well as writing. He can be contacted at- [email protected] | https://twitter.com/sankritsays

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