In India, InsightAce Analytic reported that the ethanol 2.0 market reached $125.9 billion in 2025 and is predicted to reach $226.7 billion by the year 2034.
The report noted that the market is forecast to expand at a 6.8% CAGR during the forecast period for 2025 to 2034.
Ethanol 2.0, or second-generation bioethanol, is an advanced biofuel produced from non-food biomass such as agricultural residues (corn stover, wheat straw), forestry waste, and dedicated energy crops. Unlike first-generation ethanol derived from sugarcane or corn, it avoids competition with food supply and offers significantly higher greenhouse gas reduction-often 80-100% compared to fossil fuels.
“The market for ethanol 2.0 operates at the intersection of advanced biofuels, climate policy, and sustainable chemistry. It is no longer confined to fuel blending. Still, it is increasingly critical as a feedstock for SAF and green chemicals, creating diversified revenue streams beyond traditional transportation fuels,” the report stated.
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