WHAT IS IT?
Bioethanol is ethanol (C₂H₅OH) produced from biological feedstocks through fermentation and distillation. It is blended with petrol (gasoline) in ratios from E5 to E100 to reduce fossil fuel use and carbon emissions. It is the world's most consumed biofuel by volume.
FEEDSTOCKS
1st Generation (sugar and starch):
Sugarcane: Brazil — most efficient, lowest cost production
Corn (maize): USA — world's largest ethanol producer
Sugar beet: Europe
Molasses: By-product of sugar refining
Cassava: Southeast Asia (Thailand, Indonesia)
2nd Generation (advanced/cellulosic):
Agricultural residues (corn stover, wheat straw)
Wood chips and forestry waste
Higher cost but avoids food vs fuel conflict
Gets double-counting under EU RED II
BLEND NOMENCLATURE
E5: 5% ethanol — widely used in Europe
E10: 10% ethanol — standard in USA, growing in EU
E20/E25: Brazil's standard fuel (Brazilians use flex-fuel vehicles)
E85: 85% ethanol — for flex-fuel vehicles (USA, Brazil)
E100: Pure ethanol — used in dedicated ethanol vehicles (Brazil)
KEY USES
Petrol blending (primary use) — reduces carbon intensity of transport fuel
Feedstock for ethylene (bio-ethylene → bio-polyethylene)
Industrial solvent
Beverages (industrial grade denatured — NOT for drinking)
Sanitisers and disinfectants (COVID-19 drove massive demand spike)
TRADE CORRIDORS
Major exporters: Brazil (sugarcane — most competitive globally), USA (corn — mainly domestic)
Major buyers: EU, South Korea, Japan, India
Tetra relevance: Brazil → Asia-Pacific. EU mandate growth driving import demand.
PRICING BASIS
US corn ethanol: CBOT Ethanol futures (Chicago). Brazil: ESALQ/CEPEA index. EU: EPURE/Platts assessment.
SPECIFICATIONS (Fuel Ethanol)
Ethanol: min 99.5% (anhydrous) or 95.1% (hydrated)
Water: max 0.5% (anhydrous grade)
Methanol: max 0.5%
Acidity (as acetic acid): max 0.007%
Copper: max 0.1 mg/kg
Denaturant added (typically petrol) to avoid beverage use