TY - JOUR

T1 - Value chain structures that define European cellulosic ethanol production

AU - Gregg, Jay Sterling

AU - Bolwig, Simon

AU - Hansen, Teis

AU - Solér, Ola

AU - Amer-Allam, Sara Ben

AU - Viladecans, Júlia Pladevall

AU - Klitkou, Antje

AU - Fevolden, Arne

PY - 2017

Y1 - 2017

N2 - Production of cellulosic ethanol (CE) has not yet reached the scale envisaged by the literature and industry. This study explores CE production in Europe to improve understanding of the motivations and barriers associated with this situation. To do this, we conduct a case study-based analysis of CE production plants across Europe from a global value chain (GVC) perspective. We find that most CE production plants in the EU focus largely on intellectual property and are therefore only at the pilot or demonstration scale. Crescentino, the largest CE production facility in Europe, is also more interested in technology licensing than producing ethanol. Demonstration-scale plants tend to have a larger variety of feedstocks, whereas forestry-based plants have more diversity of outputs. As scale increases, the diversity of feedstocks and outputs diminishes, and firms struggle with feedstock provisioning, global petroleum markets and higher financial risks. We argue that, to increase CE production, policies should consider value chains, promote the wider bio-economy of products and focus on economies of scope. Whereas the EU and its member states have ethanol quotas and blending targets, a more effective policy would be to seek to reduce the risks involved in financing capital projects, secure feedstock provisioning and support a diversity of end products.

AB - Production of cellulosic ethanol (CE) has not yet reached the scale envisaged by the literature and industry. This study explores CE production in Europe to improve understanding of the motivations and barriers associated with this situation. To do this, we conduct a case study-based analysis of CE production plants across Europe from a global value chain (GVC) perspective. We find that most CE production plants in the EU focus largely on intellectual property and are therefore only at the pilot or demonstration scale. Crescentino, the largest CE production facility in Europe, is also more interested in technology licensing than producing ethanol. Demonstration-scale plants tend to have a larger variety of feedstocks, whereas forestry-based plants have more diversity of outputs. As scale increases, the diversity of feedstocks and outputs diminishes, and firms struggle with feedstock provisioning, global petroleum markets and higher financial risks. We argue that, to increase CE production, policies should consider value chains, promote the wider bio-economy of products and focus on economies of scope. Whereas the EU and its member states have ethanol quotas and blending targets, a more effective policy would be to seek to reduce the risks involved in financing capital projects, secure feedstock provisioning and support a diversity of end products.

KW - Bioenergy

KW - Biorefinery

KW - Cellulosic ethanol

KW - Global value chain

UR - http://www.scopus.com/inward/record.url?scp=85011310529&partnerID=8YFLogxK

U2 - 10.3390/su9010118

DO - 10.3390/su9010118

M3 - Journal article

AN - SCOPUS:85011310529

VL - 9

JO - Sustainability

JF - Sustainability

SN - 2071-1050

IS - 1

M1 - 118

ER -