Ethanol stands as a key renewable resource that plays a crucial role in reducing carbon emissions and advancing circular economy principles by serving as a sustainable alternative.

Ethanol stands as a key renewable resource that plays a crucial role in reducing carbon emissions and advancing circular economy principles by serving as a sustainable alternative to fossil-based products across multiple industries. Its production from renewable biomass creates a carbon cycle that significantly reduces net greenhouse gas emissions compared to conventional petroleum-based alternatives. It is derived from the fermentation of carbohydrate sources, which can include sugar crops and other starch-based feedstocks. Sugar-based feedstocks offer distinct advantages: they don't require hydrolysis to break down starch structures, produce only carbon dioxide as a byproduct, and in the case of sugarcane-ethanol, the bagasse (the dry pulpy fibrous material that remains after crushing sugarcane stalks to extract their juice) can be used to generate clean electricity to power all operations within the sugar mill or ethanol plant.

Ethanol has three primary applications: it can be used for potable alcoholic beverages, industrial use (such as hand sanitizers), and transport fuel (either standalone as hydrous ethanol or blended with gasoline as anhydrous ethanol). The transport fuel sector dominates the industry, with U.S. corn-based production leading in volume, while Brazil maintains the highest inclusion rate at 27% with gasoline. Since 2003, manufacturers have developed flex-fuel vehicles with sophisticated sensors and programming that accommodate any gasoline-ethanol blend. Many countries now promote ethanol fuel blending using both domestic and imported supplies.

There are up-and-coming fuels, such as SAF (Sustainable Aviation Fuel via alcohol-to-jet pathway) and green hydrogen, which can be produced from ethanol. Ethanol can also be used as a substrate for other bioproducts, such as bioplastics (PLA and others) and biochemicals. Beyond ethanol, bagasse and beet pulp-based bioproducts can offer further contribution to sustainable innovation through feed, packaging, and other uses.

Sugar crops are a major feedstock for renewable bioethanol production for use as a transportation fuel. Other feedstocks include starch-rich crops such as corn, wheat and cassava. Because it is a clean, affordable and low-carbon biofuel, ethanol from sugar crops has emerged as a leading renewable transportation fuel. Ethanol for fuel can be used in two ways:

• Blended with gasoline at levels ranging from 5 to 27.5% to reduce petroleum use, boost octane ratings and cut tailpipe emissions.
• Pure ethanol – a fuel made up of 85 to 100% ethanol and which can be used in specially designed engines such as flexifuel vehicles.

There are several benefits often recognised from fuel ethanol use. These include

• Cleaner Air. Ethanol adds oxygen to gasoline which helps reduce air pollution and harmful emissions in tailpipe exhaust.
• Reduced Greenhouse Gas Emissions. Compared to gasoline, ethanol from sugar crops significantly cuts carbon dioxide emissions.
• Better Performance. Ethanol is a high-octane fuel that helps prevent engine knocking and generates more power in higher compression engines.
• Lower Petroleum Usage. Ethanol reduces global dependence on oil.

Brazil is the world leader in fuel ethanol production from sugarcane.