The United States and Brazil Dominate Global Ethanol Production

PT Pertamina (Persero) is set to launch a new type of fuel, a blend of Pertamax and vegetable-based ethanol or bioethanol. This is expected to be implemented in June 2023.

According to CNN Indonesia, bioethanol is one of several forms of renewable energy that can be produced from plants through fermentation. Ethanol itself can be made from common plants, such as sugarcane.

Pertamina's CEO, Nicke Widyawati, stated that the ethanol to be used will be derived from sugarcane molasses. In her opinion, the energy transition is not merely about reducing carbon emissions, but more importantly about achieving energy independence.

Against this backdrop, which countries are capable of producing large quantities of ethanol?

Data from the Renewable Fuels Association (RFA) shows that the world's largest ethanol producer is the United States (US), reaching 15.01 million gallons in 2021. This accounts for 55% of global production.

The US's 2021 achievement represents an increase from the previous year's production of 13.94 million gallons of ethanol.

The second largest producer is Brazil, which produced 7.32 million gallons in 2021. Its percentage share is significantly lower than the US, at 27% of total world production.

Unfortunately, this figure represents a decrease from 2020, when Brazil produced 8.1 million gallons.

A distant third is the European Union, which produced 1.35 million gallons in 2021, equivalent to 5% of global production. The remaining production is shown in the graph above.

Regarding the need for this new type of fuel, the Directorate General of New, Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources (ESDM) states that current total fuel-grade bioethanol production is only 40,000 kiloliters (kl) per year.

This figure is far below the required 696,000 kl per year for the initial implementation phase in East Java and Jakarta.

(See also: Indonesia Wants to Mix Gasoline with Bioethanol, but Supply is Minimal)