Techno-Economic Analysis of Bio-Alcohol Production in the EU. A Short Summary for Decision-Makers.

Abstract

This report aims at presenting in a relative condensed format the crucial facts relative to the bioethanol technique. It is meant for the reference of non-technical decision makers that require an overview of the techno-economic characteristics of this emerging approach towards a more sustainable transportation system. Data have been extracted from a number of different sources. A basic reference for the techno-economic analysis has been the Institut National de la Recherche Agronomique-France and Teagasc Crops Research Centre-Ireland, but several other sources have been used also. These data have been gathered and harmonized for sake of comparability, and processed to provide an overview of the techno-economic of bioethanol in section 2. Several issues may be highlighted: • Due to the cost structure of bioalcohol production, its competitiveness mainly depends on the price of the biomass feedstock and processing costs. • Technological improvements may contribute to increase the market penetration possibilities of bioethanol, but a mature bioethanol economic sector is conditioned by a stable and low cost feedstock supply. • The competitiveness of bioethanol also depends on the evolution of the prices of mineral fossil fuels. • Two of these parameters are highly volatile and difficult to predict: feedstock and fuel prices. Policies to ensure price stability should be endeavored to favor a deeper penetration of bioethanol crops. • Technology developments on lignocellulosic feedstock processing may be key in order to achieve bioalcohol cost competitiveness against fossil fuels. • Bioethanol blends, mixing bio-fuel and mineral fossil fuel are a viable way to foster a less carbon-intensive automotive sector. • In the long-run, however, and considering the agricultural yields, bioethanol is likely to be able to supply a two-digit percentual share of the European automotive transportation needs.