Ethanol E-Fuel Market Size - By Renewable source, By Technology, By Application, Analysis, Share, & Growth Forecast, 2025 - 2034

Ethanol E-Fuel Market Size

The global ethanol e-fuel market was valued at USD 1.7 billion in 2024 and is estimated to reach the value of USD 30.4 billion by 2034, growing at a CAGR of 33.4% from 2025 to 2034. Improvements in technology for ethanol production have corrected efficiency and scale in recent years. The emerging countries like India has encouraged the use of water-saving crops, like maize, to make ethanol and has encouraged the development of technology for ethanol production from non-food feedstocks.
 

Development of infrastructure is also important to facilitate enhanced production and distribution of ethanol. The government has been making investments in enhancing ethanol production capacities and logistics to maintain a consistent supply of ethanol to achieve blending goals. These initiatives will help cut costs and enhance the competitiveness of ethanol in the energy sector. For reference, in April 2025, Indian government has launched a Ethanol Blended with Petrol (EBP) Program across the nation, that oil marketing business trade blended petrol. The government, under the EBP plan, set the goal for ethanol blending with petrol to 20% by this year.
 

The use of ethanol as a cleaner fuel compared to conventional fuels is also aided by international trends towards decarbonization. As nations work towards achieving their climate goals, the need for sustainable fuels such as ethanol will increase, thus further propelling the expansion of the e-fuel market.
 

The ethanol e-fuel market is dictated by economic drivers like fuel prices, agricultural policy, and international commodity markets. The policy of the government to permit ethanol production from diversified feedstocks like sugarcane juice and B-heavy molasses has broadened the feedstock base for ethanol and minimized dependence on a single crop. Also, the trend towards corn ethanol production has turned India into a net importer from being one of the world's leading corn exporters, impacting domestic industries and international supply chains. This trend sustains international corn prices and puts pressure on India's poultry industry, which is looking for duty-free and genetically modified (GM) corn imports.
 

In April 2025, tariffs on trade by the U.S. government will heavily impact the industry. Tariffs against other emerging economies have been put on hold for a few months because of geopolitical reasons. This additional import will thus increase production cost for U.S. producers, more than likely raising the consumer price and causing supply chain disturbances. Various firms across the industry will look for alternative sources or local fabrication in trying to compensate for such issues.
 

Ethanol E-Fuel Market Trends

Global trend towards ethanol e-fuel industry has been significantly growing in recent years, driven by the rising concerns about the environment. Moreover, push towards e-fuel for multiple applications such as automotive and agriculture is fueling global demand. For reference, in February 2024, the United States Environmental Protection Agency (EPA) signed a final rule to permit year-round sales of gasoline mixed with 15% ethanol (E15) in eight Midwestern states: Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin. Effective from April 2025, the move will provide a boost to ethanol usage and the agriculture economy by harnessing about 40% of the country's corn harvest to make ethanol.
 

The U.S. ethanol exports have been growing due to higher global demand for renewable fuels. In 2023, the country’s ethanol exports hit record levels, with the leading importers being Brazil, Canada, and the European Union, which in turn is anticipated to remain high down the line, thereby complementing the business outlook.
 

In 2023, global ethanol consumption crossed more than 131 million metric tons, back to pre-pandemic rates. It is estimated that this will go up to almost 149 million metric tons by 2030, consistent with a healthy growth path. It is driven by favorable government policies supporting renewable energy, advancements in manufacturing technology, and increasing movement towards cleaner fuel globally.
 

Ethanol E-Fuel Market Analysis

• The global market for ethanol e-fuel was evaluated at USD 1.3 billion, USD 1.3 billion and USD 1.7 billion in 2022, 2023, and 2024 respectively. Based on renewable sources, the market is segmented into on-site solar, and wind, where on-site solar segment will grow at a CAGR of around 32% till 2034 owing to governments push for advanced e-fuel products and their related sectors.
   
• On-site solar power is transforming ethanol manufacturing with a renewable energy source that diminishes the need for fossil fuels and greenhouse gas emissions. POET Solar Farm, the largest biofuel manufacturer in the world, installed its first on-site solar farm in 2021. The site produces renewable power equal to the electricity consumed annually by 90 homes, which reduces carbon emissions by 630,000 pounds per year.
   
• Solar energy can substantially reduce the cost of electricity, which accounts for a significant percentage of ethanol production costs. In addition, using solar power reduces the carbon content of ethanol, conforming to world sustainability targets. Solar installations on-site decrease reliance on outside energy sources, improving energy security and driving the energy requirement worldwide.
   
• Wind power is another key renewable energy source for ethanol production, providing a reliable and scalable source of power. For example, Chevron in 2020 finished the installation of a wind turbine at its biorefinery, lowering carbon emissions by more than 22,500 metric tons since it started operation.
   
• Wind source also comes with several benefits that are boosting the demand for ethanol e-fuel market such as stable energy supply, and positive environmental impact. This is instrumental in lowering the carbon intensity of ethanol, consistent with international efforts to fight climate change. As technologies evolve, policy support grows stronger.
   

• The application-based market is divided into automotive, marine, aviation, industrial, and others, where automotive is experienced a market share of more than 33% in 2024. Recent expansion in the automotive sector is expected to boost the market demand for Ethanol E-Fuel worldwide. Consumers’ partiality towards the modern energy efficient product is lifting from outdated technologies owing to the adaptation of new products.
   
• The aviation applications are driven by advanced technology and government policies in recent years. For reference, the European Union has made ambitious goals for Sustainable Aviation Fuels (SAF) with a target of 70% of jet fuel at EU airports being sustainable by 2050. This encompasses ethanol-based e-fuels, encouraging their use in the aviation sector.
   
• Ethanol is being increasingly used by industries as a low-carbon, clean-burning substitute for fossil fuels, particularly in applications where heat is needed, or energy is generated. Ethanol is utilized as a feedstock or solvent in numerous manufacturing industries, including chemicals, pharmaceuticals, paints, and personal care.
   
• Industrial applications are one of the fastest growing owing to the expansion and utilization of advanced technology globally. For instance, Brazil's "Fuel of the Future" initiative, introduced in 2023, targets the rise of the ethanol-gasoline blend to 30% and the implementation of a national program for SAF. The program is anticipated to raise ethanol demand substantially and lower gasoline imports.
   

• The U.S. ethanol e-fuel market was valued at USD 170 million, USD 180 million, and USD 240 million in the year 2022, 2023, & 2024 respectively. The EPA's final rule for the Renewable Fuel Standard (RFS) program sets biofuel volume standards for 2023–2025, which demonstrate the U.S. government's resolve to increase low-carbon fuels. The combined renewable fuel volumes are 20.94 billion gallons for 2023, 21.54 billion gallons for 2024, and 22.33 billion gallons for 2025.? Such program is driving the North America market in recent years delivering ease to the end user.
   
• Europe leads the ethanol e-fuel industry, with the European Union's Renewable Energy Directive (RED II) requiring 14% renewable energy contribution in transport fuels by 2030. The policy has driven investments in ethanol-based e-fuels, especially in aviation and shipping industries.
   
• In the Asia-Pacific region, nations such as India and Australia are leading the way in ethanol e-fuel uptake. India's Ethanol Blending Program aims at a 20% ethanol blend in gasoline by 2025, to minimize fossil fuel reliance and improve energy security. Policies have been initiated by the government to promote the production of ethanol from different feedstocks, including rice and sugarcane.
   
• Saudi Arabia is leading the growth of the ethanol e-fuel market in the Middle East and Africa. The country is focusing on expenditures towards renewable energy projects like green hydrogen which is very important in the production of synthetic ethanol e-fuels. The national oil company of the Kingdom, Saudi Aramco, has purchased a 10% share of Horse Powertrain, a consortium that is working on developing hybrid engine technology for cars. All these projects are intended to meet Saudi Arabia’s vision 2030 goals of diversifying their energy resources and reducing carbon footprint.
   
• Countries in Latin America are significantly showing an upward trend for new technologies owing to the rising concerns regarding climate change. Brazil focusing on infrastructure and technology to support the production and distribution of ethanol-based e-fuels, enhancing its position in the global market. As a reference, in 2023, biodiesel and ethanol production total around 43 billion liters in Brazil driven by the significant investments.
   

Ethanol E-Fuel Market Share

Top 5 companies in the ethanol e-fuel industry include ADM, COFCO, Cargill, Marquis Energy, and POET covering for around 35% market share. The cited companies have, together with other partnering organizations, invested in advancing technology, specifically in the development of heat pumps which is further supplemented by investment on a global level.
 

Their mastery in crucial market coupled with global partnerships, contracts, wide agreements, and relentless technological innovations as well as robust product portfolios, aids them considerably in achieving along with supporting their fierce position in the industry. As a reference, in February 2025, Cargill took all regulations of SJC Bioenergia covering a total of 100% business acquisition. By getting a valiant move into biofuels it is planning to boost Brazil’s ethanol and sugar sector.
 

Ethanol E-Fuel Market Companies

• ADM is an international food processing and agricultural business with a diversified product range and strong position in the world food and nutrition supply chain. They engage in sourcing, processing, and trading agricultural commodities such as grains, oilseeds, and other products for numerous markets, including food, beverages, animal nutrition, and industrial use. It generated over USD 85.5 billion revenue in 2024, driven by a strong global presence.
   
• COFCO is leading grain trader founded in 1949 and based in China. It operates mainly core business, including sugar, cotton, grain, oil, meat, dairy products, etc., and includes finance, food, and real estate as three big corresponding business segments. In 2023, the company generated a revenue of USD 50 billion and controlled over 122 million tonnes of connected commodities.
   
• Marquis Energy is an ethanol fuel manufacturer, as a part of a renewable energy business. In 2008, it opened with the Fagen-ICM ethanol facility, and in 2015 it broadened their scope to include the largest dry-mill ethanol facility in the USA. They also manage Distillers Dried Grains (DDGs) and other associated commodities. In recent, 2024, it has managed to generate approximately USD 159.2 million.
   
• POET is a headquartered biofuel firm in South Dakota, that focuses on emerging markets in bioethanol. It is the world’s single largest bioethanol producer with 34 plants in the US. Among POET’s product offerings are bioethanol and coproducts such as distiller’s grains, Inviz, and corn oil. In 2024, it made around 1 billion by delivering products and services worldwide.
   

Key players operating across the ethanol e-fuel industry are:

• Abengoa Bioenergy
• ADM
• Cargill
• COFCO
• Energix Renewable Fuels
• Flint Hills Resources
• Glacial Lakes Energy
• GranBio
• Green Plains Inc.
• KAAPA Ethanol
• Marquis Energy
• Pacific Ethanol
• POET
• Raízen
• The Andersons
• Valero Energy
• Vivergo Fuels
   

Ethanol E-Fuel Industry News

• In December 2024, Indian Oil’s Bongaigaon Refinery has launched E-20 fuel for automotive, that comes with 20% blend ethanol. This marks a milestone in the Government of India's National Biofuels Policy which plans to provide petrol blended with 20% ethanol.
   
• In March 2024, Indian Union Minister for Petroleum & Natural Gas and Housing and Urban Affairs, introduced a game-changing car fuel “ETHANOL 100” at IndianOil Retail Outlet. Customers can get ETHANOL 100 at some 183 retail outlets in five states –Karnataka, Maharashtra, New Delhi, Uttar Pradesh, and Tamil Nadu.
   
• In October 2023, Aramco, in association with ENOWA, formed a partnership to undertake a venture for the design, development and construction of an e-fuel plant that synthesizes and demonstrates unique processes of fuel production. The plant aims to achieve the technical milestones required to demonstrate the commercial prospects of producing low-emission synthetic gasoline from renewably sourced hydrogen and CO2.
   
• In February 2025, Gevo and Axens are coming together to accelerate the progress of Sustainable Aviation Fuel (SAF) through the ethanol-to-jet (ETJ) route. It will scale this process up for chemical applications and seek to boost the tech for commercial use.
   

This ethanol E-Fuel market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2021 to 2034, for the following segments:

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Market, By Renewable source

• On-Site solar
• Wind

Market, By Technology

• Fischer-Tropsch
• eRWGS
• Others

Market, By Application

• Automotive
• Marine
• Aviation
• Industrial
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Netherlands
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
• Latin America
  • Brazil
  • Argentina