Ethanol

This Factsheet gives an overview of the current and potential market

Platform Chemicals

NNFCC
Introduction

for biorenewable ethanol (C2H5OH), in chemical applications.

Renewable Chemicals Factsheet

Global ethylene consumption was 109 million tonnes in 2006, equivalent to 188 million tonnes of ethanol (3). The main use of ethylene is in the production of polyethylene (PE); LLDPE, LDPE and HDPE. These products are generally used in the packaging sector as films and for injection and blow moulding applications. Braskem and Dow Chemicals are developing sugar cane to PE projects in Brazil, with planned capacity totalling 550,000 tonnes per year (4, 5). Braskem are scheduled to begin production in 2011. They expect the demand for bio-based PE to be 600,000 tonnes per year, and to command a premium of 15-30% on conventional PE. Solvay have also announced their intention to produce bio-based ethylene for the manufacture of PVC, a durable plastic widely used in the construction and automotive industries (6). Ethylene may be oxidised to ethylene oxide, an important industrial chemical mainly used for the production of ethylene glycol and other chemicals (1). Monoethylene glycol (MEG) is predominantly consumed in the production of polyester polymers (polyethylene terephthalate, or PET) which find application in fibres, films, and moulding.

Markets
Potential Market Growth
The demand for ethanol fuel is largely directed by policy and legislation. Ethanol can also be used to synthesise a number of basic chemicals and polymer precursors, including ethylene, ethyl acetate, and acetic acid. The use of biobased ethanol in industrial applications does not receive subsidies, and demand from these sectors will depend on production economics and changes in petrochemical prices.

Ethanol is a high volume commodity chemical. In 2008, world ethanol production reached 61 million tonnes per year, with the vast majority of ethanol derived from the fermentation of biomass feedstocks (1, 2).

Current applications
Ethanol is used in three sectors: fuels & fuel additives, chemicals, and food & beverages. The largest market sector is fuel & fuel additives, where ethanol is used as a petrol substitute in internal combustion engines, or converted to ethyl tertiary butyl ether, a fuel additive. The vast majority of ethanol used in this sector is biobased, and in receipt of financial incentives. In the chemicals industry, ethanol is used as a solvent and as a building block for chemical synthesis. The industry consumed about 6 million tonnes of ethanol in 2003, and is the only market in which fossil-derived ethanol has a significant share. In the same year about 3 million tonnes of ethanol were consumed in the food and beverages sector primarily as an ingredient in alcoholic drinks (2).

Ethylene
Ethylene may be synthesised by the dehydration of ethanol. This process has been used for the commercial production of ethylene in the past, and is experiencing renewed interest as market demand for bio-based products increases.

Global Production: 61 million tonnes per year Market Price (2010): $1,000 - 1,200 per tonne (Industrial ethanol) Renewable Capacity: >55 million tonnes per year Renewable Technology Status: Mature Major Current Use: Fuel and fuel additive

Contact Dr Adrian Higson Head of Biorefining Tel: +44 (0) 1904 435182 enquiries@nnfcc.co.uk www.nnfcc.co.uk
Image courtesy of Dupont

Ethyl acetate
Ethyl acetate is a biodegradable solvent, which finds application in industrial uses such as chromatography and decaffeination, and in consumer products such as paints and perfumes. Ethyl acetate is produced by the dehydrogenation of ethanol or the reaction of ethanol and acetic acid. Bio-based ethyl acetate is commercially produced in India and China. A number of organisations have developed proprietary technology for the manufacture of ethyl acetate, including Davy Process Technology, Godavari Biorefineries and Sekab.

Current Status
The majority of ethanol is produced in the US and Brazil. Worldwide, the largest bioethanol producer is Poet Energy supplying 4.6 million tonnes per year from 26 facilities across the US, followed by Archer Daniel Midland, with capacity for 2.7 million tonnes per year. In the UK, British Sugar began ethanol production in 2007, producing up to 55,000 tonnes per year from sugar beet. A second UK plant began production on Teeside in March 2010. The Ensus plant has capacity to produce over 300,000 tonnes per year of ethanol from animal feed wheat. There are several plants which demonstrate the conversion of lignocellulosic feedstocks to ethanol (often termed cellulosic ethanol) in the EU and US, but as yet no fully commercial plants. Syngas fermentation to ethanol is proven at pilot scale, and is expected to be demonstrated by 2012 (8). INEOS Bio are assessing the feasibility for a plant to convert biodegradable household and commercial wastes to ethanol in the north east of England. Commercial operation is expected to start from 2012.

Acetic acid
Acetic acid may be produced by the oxidation of ethanol. The process has been demonstrated at pilot scale and is available to licence from Wacker Chemie. The major use of acetic acid is as a chemical intermediate, in the production of vinyl acetate monomer, acetic anhydride, and ethyl acetate.

Environmental Performance
The substitution of petroleum derived ethanol with bioethanol leads to non-renewable energy savings of between 35 GJ/t (60%) and 80 GJ/t (130%). The greenhouse gas (GHG) emission savings range from 2 tCO2e/t (20%) to 4 tCO2e/t (280%) (2). The land required to manufacture bioethanol by current processes ranges from 0.12 to 0.29 ha/t depending on feedstock. The substitution of petroleum derived PE with bio-based PE leads to non-renewable energy savings of between 25 GJ/t (38%) and 102 GJ/t (156%) depending on feedstock. The GHG emissions References and Further Reading savings over the lifetime of the 1. www.ethanolrfa.org/pages/statistics#E material range from 2 to 6 tCO2e/t, depending on the feedstock and 2. Medium and Long-term Opportunities and Risks of end-of-life fate (2). the Biotechnological Production of Bulk Chemicals

Technology
Production route from biomass
The production of ethanol from the fermentation of glucose is a mature process, practised at large scale around the world. Fermentation is typically carried out by yeast to produce a dilute aqueous ethanol solution (approximately 10-13%), which is concentrated by distillation and the use of molecular sieves. Due to the potentially limited availability of starch and sugar feedstocks, significant funding and research effort is focusing on using lignocellulosic feedstocks to produce ethanol. An alternative production route to ethanol is via biomass gasification. Biomass gasification produces syngas, a mixture of carbon monoxide and hydrogen. Syngas is converted to ethanol by fermentation, or chemical catalysis. The nature of the gasification process enables a wider range of biomass resources to be used.

Global Manufacturers
POET: www.poetenergy.com ADM: www.adm.com ETH Bio energy: www.eth.com

from Renewable Resources The Potential of White Biotechnology (The BREW Project, 2006)

3. NNFCC 08-008 Biochemical Opportunities in the United

Kingdom (Nexant ChemSystems, 2008)

4. www.dow.com/commitments/studies/sugar.htm 5. www.braskem.com.br/site/portal_braskem/en/sala_de_
imprensa/sala_de_imprensa_detalhes_8129.aspx

UK Manufacturers
British Sugar: www.britishsugar.co.uk Ensus: www.ensusgroup.com

6. www.solvinpvc.com/solvinservices/news/0,,62076-2-0,00.htm 7. NNFCC 08-007 Lignocellulosic Ethanol Plant in the UK Feasibility Study, July 2008 Black & Veatch

8. www.ineosbio.com/76-Press_releases-6.htm
July 2010