Ethanol (Ethyl Alcohol) – Uses, Prices, and Production

This blog is the twenty-seventh in a series of blogs I plan to write providing use, price, and production data on high-use inorganic and organic chemicals.  Click here to see the first blog in this series and a list of chemicals to be featured.  This blog provides data on ethanol.  The primary purpose of these blogs is to present estimates of recent price, production, and sales revenues for the chemicals.  The last blog in this series will compare price, production, and sales data for all the chemicals.  

Uses.  Uses of ethanol include: 

• As a gasoline additive;
• As a fuel;
• As a feedstock for making other chemicals;
• As a solvent;
• As a disinfectant and antiseptic;
• In liquids consumed by humans for physiological affects; and
• For extracting flavors and aromas used in food and beverage products. 

Prices.  The 2019 global ethanol price is believed to be in the range of $700 to $1,200 per metric ton (mt). 

Production.  Ethanol is produced by the fermentation of sugars by yeasts (predominant production method) and by hydration of petroleum-derived ethylene using a catalyst. 

From the internet, estimated 2019 global production of ethanol is in the 100 to 105 million mt range.  Using 100 and 105 million mt produced and the prices of $700 and $1,200 per mt (see Prices above) gives 2019 global revenues generated by ethanol in the $70 to $126 billion range (100 million mt times $700 per mt and 105 million mt times $1,200 per mt).