Value Chain Structures that Define European Cellulosic Ethanol Production

Jay Sterling Gregg, Simon Bolwig, Teis Hansen, Ola Solér, Sara Ben Amer-Allam, Júlia Pladevall Viladecans, Antje Klitkou and Arne Fevolden
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Jay Sterling Gregg: Department of Management Engineering, Technical University of Denmark (DTU), 2800 Kongens Lyngby, Denmark
Simon Bolwig: Department of Management Engineering, Technical University of Denmark (DTU), 2800 Kongens Lyngby, Denmark
Ola Solér: Department of Management Engineering, Technical University of Denmark (DTU), 2800 Kongens Lyngby, Denmark
Sara Ben Amer-Allam: Department of Management Engineering, Technical University of Denmark (DTU), 2800 Kongens Lyngby, Denmark
Júlia Pladevall Viladecans: Department of Management Engineering, Technical University of Denmark (DTU), 2800 Kongens Lyngby, Denmark
Antje Klitkou: NIFU Nordic Institute for Studies in Innovation, Research and Education, 0653 Oslo, Norway

Sustainability, 2017, vol. 9, issue 1, 1-17

Abstract: 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.

Keywords: global value chain; biorefinery; cellulosic ethanol; bioenergy (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:9:y:2017:i:1:p:118-:d:87849

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