Biofuel Consumption Research Articles

Renewable energy targets, forest resources, and second‐generation biofuels in Finland

AbstractIntroduction of second‐generation biofuels is an essential factor for meeting the EU's 2020 targets for renewable energy in the transport sector and enabling the more ambitious targets for 2030. Finland's forest industry is strongly involved in the development and commercializing of second‐generation biofuel production technologies. The goal of this paper is to provide a quantified insight into Finnish prospects for reaching the 2020 national renewable energy targets and concurrently becoming a large‐scale producer of forest‐biomass‐based second‐generation biofuels feeding the increasing demand in European markets. The focus of the paper is on assessing the potential for utilizing forest biomass for liquid biofuels up to 2020. In addition, technological issues related to the production of second‐generation biofuels were reviewed. Finland has good opportunities to realize a scenario to meet 2020 renewable energy targets and for large‐scale production of wood‐based biofuels. In 2020, biofuel production from domestic forest biomass in Finland may reach nearly a million ton (40 PJ). With the existing biofuel production capacity (20 PJ/yr) and the national biofuel consumption target (25 PJ) taken into account, the potential net export of biofuels from Finland in 2020 would be 35 PJ, corresponding to 2–3% of European demand. Commercialization of second‐generation biofuel production technologies, high utilization of the sustainable harvesting potential of Finnish forest biomass, and allocation of a significant proportion of the pulpwood harvesting potential for energy purposes are prerequisites for this scenario. Large‐scale import of raw biomass would enable remarkably greater biofuel production than is described in this paper. © 2011 Society of Chemical Industry and John Wiley & Sons, Ltd

The Impact of Trade Barriers on Mandated Biofuel Consumption in Canada

A customized version of the deterministic Food and Agricultural Policy Research Institute (FAPRI) modeling system was used to assess the impacts of two alternative scenarios: (1) an increase in Canadian ethanol demand to 10% of domestic liquid fuel consumption by 2011 met through increased ethanol imports, and (2) the same increase in Canadian ethanol demand met only through increased domestic supply. The results reveal import barriers injure Canadian consumers by limiting their access to supplies offered for sale at lower prices by more efficient producers, particularly those located in subtropical regions. With freer trade, the domestic ethanol price would fall while the world price would rise due to the higher demand for ethanol in Canada. The results also show that import restrictions directly undermine the effectiveness and increase the costliness of a higher consumption mandate in Canada. The relatively less expensive ethanol is for the final consumer, the more likely they will use it as fuel over available alternatives. The implication is that restricting imports of ethanol is counterproductive to the policy objective of increasing domestic ethanol consumption. Nous avons utilisé une version adaptée du système de modélisation déterministe du Food and Agricultural Policy Research Institute (FAPRI) pour évaluer les répercussions de deux scénarios possibles : 1. une hausse de la demande canadienne d’éthanol équivalant à dix pour cent de la consommation intérieure de combustible liquide d’ici 2011 grâce à l’augmentation des importations d’éthanol; 2. la même hausse grâce, cette fois, à l’augmentation des approvisionnements intérieurs seulement. Nos résultats ont indiqué que les obstacles à l’importation lèsent les consommateurs canadiens en limitant leur accès à des approvisionnements offerts à faibles prix par des producteurs plus efficaces, en particulier ceux des régions subtropicales. En présence d’une libéralisation accrue des échanges, le prix intérieur de l’éthanol reculerait tandis que le prix mondial augmenterait en raison de l’accroissement de la demande d’éthanol au Canada. Nos résultats ont également indiqué que les restrictions à l’importation réduisent directement l’efficacité et augmentent la cherté du mandat visant à stimuler la consommation d’éthanol au Canada. Plus le prix de l’éthanol sera abordable pour le consommateur final, plus ce dernier sera enclin à l’utiliser comme combustible par rapport aux autres sources disponibles. Imposer des restrictions à l’importation d’éthanol fait plus de tort que de bien à l’objectif de la politique qui vise à accroître la consommation intérieure d’éthanol.

Indirect land use change emissions related to EU biofuel consumption: an analysis based on historical data

Abstract Biofuels have recently been promoted in policies as a way to reduce greenhouse gas emissions from the transport sector. However, biofuel production in itself also induces emissions directly as well as indirectly. This paper presents an explicit calculation of indirect land use change (ILUC) emissions from EU biofuel consumption. The approach includes a straightforward methodology for quantifying ILUC, based on assumptions and on data that is readily available. The calculations show that ILUC emissions alone could shift the CO2 balance for biofuels from reductions to more emissions relative to fossil fuels. This calculation is largely based on historical data, which reduces uncertainty compared to forward looking modelling approaches. However, some of the uncertainties remain. Advantage of this approach is that it can easily be reproduced, which may add to the acceptability in the domain of policy making.

Projection of anthropogenic volatile organic compounds (VOCs) emissions in China for the period 2010–2020

The future (2010–2020) anthropogenic volatile organic compounds (VOCs) emissions in China were projected in this study using 2005 as the reference year. The projections are based on the assumptions of a lower population growth rate (less than 1%), continuous economic development with high GDP growth, and increased urbanization. The results show that the national VOCs emissions would continuously increase from 19.4 Tg in 2005 to 25.9 Tg in 2020, even if China's legislative standards for VOCs emissions are implemented effectively in the future (assumed as control scenario I). The contributions of various emission sources were found to differ greatly in the period of 2010–2020. Solvent utilization would become the largest contributor rising from 22% to 37%, along with an increase for industrial processes from 17% to 24%. However, road vehicle emissions would rapidly decrease from 25% to 11% due to the strict VOCs emission limit standards in China, along with the decrease for stationary fuel combustion from 23% to 16% caused by the reduction of domestic biofuel consumption. Additionally, there would be a notable divergence among provincial emissions. The developed eastern and coastal regions would emit more VOCs than the relatively underdeveloped western and inland regions. Moreover, this divergence grows in the future. When we assumed stricter control measures for solvent utilization and industrial processes (control scenario II) for that period, the projections revealed national VOCs emissions per year would remain at about 20 Tg, if exhaust after-treatment systems are installed in newly-built factories (after 2005) for the most important industrial sources, and the market shares of “low/zero-VOCs” products in paints, adhesives and printing ink raise to the present levels of developed countries. The emission abatements of the two types of measures were estimated to be similar. While scenario II indicates that the sectoral and provincial differences of VOCs emissions would still exist, they would be smaller than in scenario I.

Impact of Expanding Bio-fuel Consumption on Reduction of CO2 Emissions in Thailand:

In this paper, we verify the impacts that expanded bio-fuel consumption may have on reduction of CO2 emissions from automobiles in the household sector. We believe increasing production volume by popularizing bio-fuels may help increase the household income of farmers that produce raw materials for bio-fuels and increase the total household Equivalent Variations (EV) .First, considering the tax privileges provided for E10 (10% ethanol blended) and B5 (5% bio-diesel blended) , the indirect tax rate for bio-fuel decreased by 85.34% when subsidies were deducted from the taxable income. Based on these estimations, we performed a simulation to detect the effectiveness of a campaign popularizing bio-fuel usage alone by utilizing the Computable General Equilibrium (CGE) model to reproduce the actual situation of bio-fuel popularization in 2007. As a result, the rate of change in CO2 emissions from automobiles decreased 0.266% and the total household EV gained 1.14 billion baht due to increased farmer and non-farmer household benefits in areas other than the Greater Bangkok Metropolitan. In addition, simulations in which the indirect tax rate for bio-fuel gradually decreased from the level in 2007 showed that the consumption of bio-fuels has been rising and the reduction of CO2 emissions has been expanding to increase the total household EV.Second, when blended fuels such as E10 and B5 are fully used by the household sector it is even more important for the Thai government to provide subsidies to the bio-fuel industry and industries supplying bio-fuel materials for promoting bio-fuel usage policies and sustained economic development. To secure financial resources to achieve this purpose, the government should raise indirect taxes for the services industries. At the same time, the government should also take measures to decrease the direct tax rate for households. In our simulation based on this scenario, it was possible to reach a decrease of 0.685% in the reduction of CO2 emissions by substituting bio-fuels for fossil fuels even though fuel consumption expanded with an increase in the income of farmer households. As spillover effects on activities in the production sector, we found the following. First, the negative effects on the agriculture food processing industries by preferential treatment of the bio-fuel industry and bio-fuel related industries remained small. Second, the production volume of other agriculture products such as livestock, fishery, rubber and other crops decreased because production shifted to bio-material crops for the bio-fuel industry. Third, an increase in the indirect tax for service industries had the largest negative effects on the transportation and communication industries.Based on the above, if the Thai government can promote bio-fuel usage policies as planned, it is possible not only to reduce CO2 emissions but also to increase the benefits for the household sector.JEL Classification: C68, O53, Q42, R13, R38

Environmental Implications of Biofuels - Theoretical and Empirical Analysis for the EU and US

In this paper, we present a theoretical framework on positive and negative environmental implications of biofuels and underpin this discussion with an empirical analysis for the European Union 27 (EU) and the United States of America (US). Based on the framework and by means of time series analysis, we estimate CO2 reductions as a positive result of biofuels consumption and the fertilization increase as a negative effect of biofuels production in the EU and US in 2006-2018. Furthermore, we point out a number of questions to be addressed with regard to environmental issues in the biofuels policy in the future.

Assessing the rural development potential of lignocellulosic biofuels in Alabama

Abstract We examine the potential rural development impacts of a highly decentralized system of feedstock production, biorefining, and consumption of locally-produced lignocellulosic biofuels in Alabama, a heavily forested state in the southeastern United States. Primary data based on in-depth interviews and public presentations by experts were used to establish a realistic scenario for development of a lignocellulosic biofuels industry in Alabama. Based on these data, we applied an input–output model to illustrate economic impacts of establishing six biorefineries, each with an annual capacity of 189 dam3. We applied this same model to analyze the impact of one biorefinery of that size on a set of rural counties in west Alabama, a region characterized both by abundant timber resources and persistent rural poverty. Research findings reveal a high potential for economic development and job growth, especially in the logging sector and in rural regions of the state. The trajectory of this development and distribution of benefits from this incipient industry will depend on federal, state and local policies. We identify types of policies that would simultaneously encourage growth of this industry and ensure that those who live in areas where production and refining operations take place benefit from this development.

Greenhouse Gas Emissions from Biofuels’ Indirect Land Use Change Are Uncertain but May Be Much Greater than Previously Estimated

The life cycle greenhouse gas (GHG) emissions induced by increased biofuel consumption are highly uncertain: individual estimates vary from each other and each has a wide intrinsic error band. Using a reduced-form model, we estimated that the bounding range for emissions from indirect land-use change (ILUC) from US corn ethanol expansion was 10 to 340 g CO(2) MJ(-1). Considering various probability distributions to model parameters, the broadest 95% central interval, i.e., between the 2.5 and 97.5%ile values, ranged from 21 to 142 g CO(2)e MJ(-1). ILUC emissions from US corn ethanol expansion thus range from small, but not negligible, to several times greater than the life cycle emissions of gasoline. The ILUC emissions estimates of 30 g CO(2) MJ(-1) for the California Air Resources Board and 34 g CO(2)e MJ(-1) by USEPA (for 2022) are at the low end of the plausible range. The lack of data and understanding (epistemic uncertainty) prevents convergence of judgment on a central value for ILUC emissions. The complexity of the global system being modeled suggests that this range is unlikely to narrow substantially in the near future. Fuel policies that require narrow bounds around point estimates of life cycle GHG emissions are thus incompatible with current and anticipated modeling capabilities. Alternative policies that address the risks associated with uncertainty are more likely to achieve GHG reductions.

Land-Use and Alternative Bioenergy Pathways for Waste Biomass

Rapid escalation in biofuels consumption may lead to a trade regime that favors exports of food-based biofuels from tropical developing countries to developed countries. There is growing interest in mitigating the land-use impacts of these potential biofuels exports by converting biorefinery waste streams into cellulosic ethanol, potentially reducing the amount of land needed to meet production goals. This increased land-use efficiency for ethanol production may lower the land-use greenhouse gas emissions of ethanol but would come at the expense of converting the wastes into bioelectricity which may offset fossil fuel-based electricity and could provide a vital source of domestic electricity in developing countries. Here we compare these alternative uses of wastes with respect to environmental and energy security outcomes considering a range of electricity production efficiencies, ethanol yields, land-use scenarios, and energy offset assumptions. For a given amount of waste biomass, we found that using bioelectricity production to offset natural gas achieves 58% greater greenhouse gas reductions than using cellulosic ethanol to offset gasoline but similar emissions when cellulosic ethanol is used to offset the need for more sugar cane ethanol. If bioelectricity offsets low-carbon energy sources such as nuclear power then the liquid fuels pathway is preferred. Exports of cellulosic ethanol may have a small impact on the energy security of importing nations while bioelectricity production may have relatively large impacts on the energy security in developing countries.

Land Allocation Effects of the Global Ethanol Surge: Predictions from the International FAPRI Model

We quantify the emergence of biofuel markets and its impact on world agriculture using the multimarket, multicommodity international FAPRI model. The model incorporates trade-offs between biofuel, feed, and food production and consumption and international feedback effects of the emergence through world prices and trade. We shock the model with exogenous changes in ethanol demand, first in the United States, then in Brazil and other countries, and compute shock multipliers for land allocation decisions for important crops and countries. The Brazilian ethanol expansion using sugarcane has fewer consequences on existing arable land allocation than the U. S. ethanol expansion does using corn feedstock.

A new inventory for two-wheel vehicle emissions in West Africa for 2002

Rather surprisingly, urban atmospheric particulate levels in West Africa compare with measured concentrations in Europe and Asia megacities (Liousse, C., Galy-Lacaux, C., Assamoi, E.-M., Ndiaye, A., Diop, B., Cachier, H., Doumbia, T., Gueye, P., Yoboue, V., Lacaux, J.-P., Guinot, B., Guillaume, B., Rosset, R., Castera, P., Gardrat, E., Zouiten, C., Jambert, C., Diouf, A., Koita, O., Baeza, A., Annesi-Maesano, I., Didier, A., Audry, S., Konare, A., 2009. Integrated Focus on West African Cities (Cotonou, Bamako, Dakar, Ouagadougou, Abidjan, Niamey): Emissions, Air Quality and Health Impacts of Gases and Aerosols. Third International AMMA Conference on Predictability of the West African Moosoon Weather, Climate and Impacts. Ouagadougou, Burkina Faso. July 20–24). This pollution mainly derives from road traffic emissions with, in some capitals (e.g. Cotonou), the strong contribution of two-wheel vehicles. Two key questions arise: are presently available emission inventories (e.g. Junker, C., Liousse, C., 2008. A global emission inventory of carbonaceous aerosol from historic records of fossil fuel and biofuel consumption for the period 1860–1997. Atmospheric Chemistry Physics, 8, 1–13; Bond, T.C., Streets, D.G., Yarber, K.F., Nelson, S.M., Woo, J.H., Klimont, Z., 2004. A technology-based global inventory of black and organic carbon emissions from combustion. Journal of Geophysical Research, 1009, D14203, DOI:10.1029/2003JD003697) able to account for these emissions? And, if not, how can we remedy this? The aim of this paper is to develop a methodology to estimate emissions produced by two-wheel vehicles in West Africa for 2002 in a context where reliable information is hardly available. Fuel consumption ratios between two-wheel engines (in this work) and all vehicles issued from UN database ( http://data.un.org/Data.aspx?d=EDATA&f=cmID%3aMO%3btrID%3a1221) are as high as 169%, 264% and 628%, for Burkina Faso, Mali and Chad respectively, indicating that this global database does not properly account for regional specificities. Moreover, emission factors for black carbon (BC) and primary organic carbon (OCp) have been measured for two-stroke engines in Benin (Guinot, B., Liousse, C., Cachier, H., Guillaume, B., et al. New emission factor estimates for biofuels and mobile sources. Atmospheric Environment, in press.), giving significantly higher values than in Europe. This is particularly true for OCp, and consequently the calculated emissions for two-stroke engines are also significantly larger than total road traffic previously estimated in global inventories ( Junker and Liousse (2008) with United Nations database for 2002; Bond et al., 2004). The ensuing discussion illustrates the importance of two-stroke engines in the West Africa transport sector and the strong need for inventory updating.

Constructing sustainable palm oil: how actors define sustainability

Biofuels as a renewable source of energy have gained considerable importance in recent years. The use of biofuels is expected to rise since national governments of developed nations like the US and European countries see it as one of the ways to fulfill climate targets and increase the security in their energy supply. Production of biofuels is also expected to rise as developing nations see in biofuels the opportunity for connecting to international markets through supplying a new demand in the energy market. Several studies report on the environmental, social and economic gains and detriments that can arise from increased biofuel production and consumption. However, research that provides insight into the way in which such issues are defined by actors within the product chain is scarce. In this article we analyse how the strategies and value definitions of actors involved in the production and consumption of biofuels lead to specific definitions of sustainability. The empirical material concerns the chain of palm oil production in Colombia and electricity generation in the Netherlands. It is analysed using the method of action-in-context, which allows us to uncover the level and source of diversity of sustainability definitions in the product chain. While the current growth in production of palm oil is definitely buyer driven, the analysis of various activities in the chain shows that several aspects of sustainability are defined in more complex actor fields throughout the product chain.

Assessing the sustainability of biofuels: A logic-based model

Over the last decade, the production and consumption of biofuels increased rapidly worldwide, in an attempt to reduce GHG (greenhouse gas) emissions, diversify transportation fuels, promote renewable energy, and create or maintain employment, especially in rural areas and developing countries. Although policy instruments being currently implemented in industrialized regions focus on sustainable biofuels, the definition and assessment of sustainability remains a highly debated issue. Several countries have adopted compulsory targets or financial incentives for promoting biofuels, and only a few countries have accounted for sustainability certification schemes for those biofuels within their policy framework. In this paper, a logic-based model for assessing the sustainability of biofuels is presented. The model uses a hierarchical structure to link multiple factors from the more specific variables to the most general one, sustainability performance. The strengths and limitations of the model are discussed and the anticipated improvements are provided.

Environmental Assessment of Wood‐Based Biofuel Production and Consumption Scenarios in Norway

SummaryIn Norway, the boreal forest offers a considerable resource base, and emerging technologies may soon make it commercially viable to convert these resources into low‐carbon biofuels. Decision makers are required to make informed decisions about the environmental implications of wood biofuels today that will affect the medium‐ and long‐term development of a wood‐based biofuels industry in Norway. We first assess the national forest‐derived resource base for use in biofuel production. A set of biomass conversion technologies is then chosen and evaluated for scenarios addressing biofuel production and consumption by select industry sectors. We then apply an environmentally extended, mixed‐unit, two‐region input−output model to quantify the global warming mitigation and fossil fuel displacement potentials of two biofuel production and consumption scenarios in Norway up to 2050. We find that a growing resource base, when used to produce advanced biofuels, results in cumulative global warming mitigation potentials of between 58 and 83 megatonnes of carbon dioxide equivalents avoided (Mt‐CO2‐eq.‐avoided) in Norway, depending on the biofuel scenario. In recent years, however, the domestic pulp and paper industry—due to increasing exposure to international competition, capacity reductions, and increasing production costs—has been in decline. In the face of a declining domestic pulp and paper industry, imported pulp and paper products are required to maintain the demand for these goods and thus the greenhouse gas (GHG) emissions of the exporting region embodied in Norway's pulp and paper imports reduce the systemwide benefit in terms of avoided greenhouse gas emissions by 27%.

Biofuels Policy in Europe Under the Directive 2003/30: An Analysis of Goals, Hindrances, Instruments and Effects

Up to 2008/2009, biofuels were considered one of the best alternatives to oil consumption in a captive market like transports, being one of the pillars of the 20-20-20 initiative in Europe. Improvement of security of supply through partial substitution of imported oil; reduction of GHGs emissions; improvement of income and employment in the agricultural and rural sectors were the main drivers of the promotion of biofuels in Europe, as well as in the United States and in Brazil. In the European Union biofuels policy was supported through Directive 2003/30. However its effects proved to be disappointing: the consumption of biofuels was expected by the Directive to account for 5.75% share of road fuels in 2010 in the European MSs, but it came early clear that such a target could not be met. Above all, consensus about biofuels decreased sharply when their ability to strongly decrease overall GHGs emissions was questioned, and when they were blamed of being the main responsible of the 2007-2008 food price increase. Finally, a new Directive was approved on April 23rd, 2009, including the request of various certifications to prove the sustainability of biofuels. The paper deals deeply with the biofuel experience in Europe, providing a general analysis of the 2003/30 Directive. It includes an evaluation of the difficulties met in satisfying the requested targets, an assessment of the MSs policies to support biofuels, and a discussion about the main features of the (failed) birth of a new industry.

Pollution Externalities and Government Policy

Biomass (in modern context, biofuels) have been the oldest source of energy and still accounts for about 10 per cent of total world energy consumption. With the steeply rising prices of fossil fuels in the last few years and the increasing concerns about environmental pollution and global warming, the search for alternative fuels is gathering speed. In this context the present paper tries to examine the issue in the context of India and its government’s policies to promote biofuels. It has been a matter of concern that the overall production and consumption of biofuels in India is still very meagre. In this context we also examine the role of the central- and state-level government in promoting biodiesel and also look into the ‘trade-off’ aspects between food crops and these fuel crops as India can ill afford to compromise its food security.

Potential for reducing emissions in a diesel engine by fuelling with conventional biodiesel and Fischer–Tropsch diesel

A gas-to-liquid (GTL) fuel derived from Low Temperature Fischer–Tropsch process has been tested in an automotive diesel engine fulfilling Euro 4 emissions regulations. Both regulated and non-regulated emissions have been compared with those of a commercial diesel fuel, a commercial biodiesel fuel and a GTL–biodiesel fuel (30% and 70% v/v, respectively) in order to check blending properties, synergistic effects and compatibility between first and second generation production technologies for biofuel consumption in current diesel engines. After presenting a detailed literature review, and confirming that similar efficiencies are attained with the four tested fuels under identical road-like operating conditions (this meaning fuel consumption is inversely proportional to their heating values), significant reductions in smoke opacity, particulate matter emissions and particle number concentration were observed with both GTL and biodiesel fuels, with small changes in NO x emissions. Compared with the reductions in PM emissions derived from the use of biodiesel fuels, those derived from using GTL fuels were quite similar, despite its lower soot emissions reductions. This can be explained by the lower volatile organic fraction of the PM in the case of GTL. By adequately blending both fuels, a considerable potential to optimise the engine emissions trade-off is foreseen.

The substitutive effect of biofuels on fossil fuels in the lower and higher crude oil price periods

Various biofuels, including bioethanol and biodiesel are technologically being considered replacements for fossil fuels, such as the conventional gasoline and diesel. This paper aims to measure whether economic substitutability can be generated during periods of higher and/or lower prices of crude oil. The empirical results of the bivariate EGARCH model prove that this substitutive effect was occurred during the higher crude oil price period due to the significant price spillover effects from crude oil futures to corn and soybean futures, indicating that the increase in food prices can be attributed to more consumption of biofuels. We suggest more extensive research in the search for fuel alternatives from inedible feedstock such as pongamia, jojoba, jatropha, especially the 2nd generation biofuel technologies such as algae-based biofuels.

From water to energy: The virtual water content and water footprint of biofuel consumption in Spain

Energy diversification and the use of renewable energy sources are key points in the European energy strategy. Biofuels are the most popular renewable resource option for the transport sector, and the European Union has established objectives that the Member States must adopt and implement. However, biofuel production at such a scale requires a considerable amount of water resources, and this water–energy nexus is rarely taken into account. This paper shows the strong nexus between water and energy in biofuel production and estimates the virtual water (VW) content and the water footprint (WF) from the raw material production that will be needed to reach the Spanish targets for biofuel consumption by 2010. The results show how the impact of such targets on the global and local water situation could be reduced through virtual water imports and, at the same time, how these imports could increase Spain’s water and energy dependence. Hence, in order to manage water from an integral perspective of the territory, the inclusion of biofuel consumption objectives should go hand in hand with measures to reduce the demand of energy in the transport sector.

An Economic Evaluation of the Renewable Fuel Standard (RFS) Biofuel Program: An Industrial Policy Approach

The American public realizes the growing scarcity of petroleum and the desirability of the development of alternative fuels. In 2005 and 2007, the U.S. Congress passed laws that aim to promote the consumption of renewable biofuels. The Environmental Protection Agency then designed the Renewable Fuel Standard Program (RFS) that mandates a certain volume of renewable biofuel consumption over the period of 2006-2022. The current policy discussions and analyses regarding the RFS have focused heavily on environmental issues, but we know very little about the U.S. ethanol industry itself. In this study, we examine the potential impact of the RFS on the development process of the U.S. ethanol industry from the viewpoint of industrial policy using ethanol plant-level data. Our analysis suggests that the RFS program contributes to increasing economies of scale and improving competition level among existing firms. The successful development of the U.S. ethanol industry hinges on this factor. The ethanol market is expanding through new plant construction, and the increased competition will let ethanol emerge as a viable fuel alternative to conventional fossil fuel.