WHAT DOES THE ETHANOL LOBBY IN EUROPE SEEK TO CHANGE?

The European Union’s “FuelEU Maritime Regulation” and RefuelEU Aviation Regulation exclude 1st generation ethanol (1GE) from being used as a precursor to renewable fuel for ships and planes. 1EG is the well-known ethanol made from sugar cane, corn and other crops intended for “food” production. Only 2nd generation ethanol (2GE), made from vegetables’ waste (non-edible lignocelulosic material) are accepted as feedstock for SAF and Bio-Bunker production. An ethanol institution based in Europe – ePure – wants to change this ruling and went to court.  Right Energy agrees with the EU’s decision to ban E1G because if it is enabled to be feedstock to move ships and planes there will certainly be a huge expansion of crop area for fuel with a harmful effect not only on the supply/price of food, but also on the growth of fossil carbon intensity in the bioethanol produced (land-use-change), along with more negative impact on the environment. The maritime and aviation sectors consume more than 300 million tons of fuel per year each. On average 2 kg of ethanol shall result in 0.8 kg to 1,0 kg of SAF. Replacing 5% of global airplane consumption will require the production of an extra 37.5 billion liters of ethanol. If we assume the same proportion is enough to replace 5% of bunker for maritime transport, then we will have to save 75 billion liters of E1G from a current total global production of around 100 billion liters/year. These 75% of all the E1G produced today would only partially decarbonize the displaced 5% of the fossil fuels because the effective reduction in emissions will be just about 2.5% since the mix of sugarcane and corn ethanol reduces CO2 emissions by 50% or less!!! But if the EU rule stands, only E2G will be accepted. E2G production today – all in Brazil – is currently around 100 million liters/year, 0.13% of the 75 billion liters needed. It doesn’t look the way out. We will need synthetic fuels that requires green hydrogen and green carbon. Will it be possible to produce them? If the answer is positive, then when will it materialize? Impossible to predict.

https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/oil/013124-renewable-ethanol-producers-take-eu-to-court-over-bio-bunker-policy#:~:text=European%20renewable%20ethanol%20producers%20have%20launched%20a%20legal,recognize%20the%20benefits%20of%20sustainable%20first-generation%20crop-based%20biofuels