Cellulosic Ethanol Market Trends

Growth Drivers

• Burgeoning Renewable and Sustainable Energy – Cellulosic ethanol is the second generation biofuel that is derived from different kinds of feedstock. Thus, with the increasing focus on generating renewable energy, the demand for cellulosic ethanol is anticipated to increase in the upcoming years. International Energy Agency (IEA) stated that in 2021 renewable electricity generation rose by almost 7%, equivalent to an increase of 522 TWh.
• Substantial Growth of the Agriculture Sector – Cellulose ethanol is mainly made with cellulosic feedstock such as grass, wood, crop residues, and other starch-based crops. Thus, with the development in the agriculture sector, it is estimated to generate profitable opportunities for global cellulosic ethanol market value by providing sufficient raw materials.
• Rising Concern Regarding Climate Change – Decision makers are supporting the use of cellulosic ethanol owing to the substantial reduction in emissions owing to the use of cellulosic ethanol when compared to the use of petroleum-based fuels for transportation, electricity, heat, and other purposes. The National Oceanic and Atmospheric Administration has stated that the earth’s temperature has risen by 2° F since 1880 and the rate of global warming has doubled since then.
• Increasing Use of Biomass – In the recent period, many biomass initiatives have been regulated by the governments of different nations. As a result, the utilization rate of cellulosic ethanol in the forthcoming period and aid in the expansion of global cellulosic ethanol revenue generation during the forecasted timeline.

Challenges

• Rising Concern Regarding Infrastructure – Cellulosic ethanol couldn’t be transported through pipes and requires proper roads and vehicles for transportation and distribution. The infrastructure needed for storage and processing is extremely important. These factors couple up to challenge cellulosic ethanol market growth in the assessment period.
• High Competition with the Food Sector for Resources like Land, Water, and Fertilizer
• Lack of a Distributed Network