Value chain structures that define European cellulosic ethanol production
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Value chain structures that define European cellulosic ethanol production. / Gregg, Jay Sterling; Bolwig, Simon; Hansen, Teis; Solér, Ola; Amer-Allam, Sara Ben; Viladecans, Júlia Pladevall; Klitkou, Antje; Fevolden, Arne.
In: Sustainability (Switzerland), Vol. 9, No. 1, 118, 2017.Research output: Contribution to journal › Journal article › Research › peer-review
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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 -
ID: 255104127