European Ethanol Market
On the fuel ethanol side, in Europe, demand is being driven up by national mandates and targets. Industrial ethanol demand is more stable.
The Renewable Energy Directive, established in 2009 from other road maps, requires member states to submit national renewable action plans. The latest text requires the achievement of a share of at least 10% share of renewable energy in the total gasoline and diesel consumed in transport by 2020, of which at maximum of 7% from food-based biofuels. In Europe, Ethanol is produced from different raw materials: beets, corn, wheat, rye, triticale, barley,...
The directive is being implemented, and each member state has its own blending level, its own way to reach the target, and its own progress.
The new directive, published in 2015, requires a 6% reduction of GHG intensity in transport fuel from the 2010 level by 2020. Germany already follows its own rule, which no longer works on blended volumes, but on GHG emission reduction.
Fuel is not the only use in Europe. Around 30% of the European consumption is destined for industrial use. This has been much more stable over the years: around 2,4 M m3 is consumed each year in Europe.
To satisfy European ethanol demand, the EU imports from other origins : Brazil, Guatemala, Peru, Pakistan, Russia, Bolivia… depending on the grade demanded and arbitrages open.