Industries today face two challenges at once, namely reducing carbon emissions and maintaining the reliability of energy supply. This condition is pushing many companies to evaluate various lower-emission energy alternatives that are suited to industrial operational needs.
One fuel that currently has potential as an alternative is ethanol or bioethanol. However, before it can be used as a primary energy source, it is important to understand its characteristics, examine its application across various sectors, and assess whether this fuel is already capable of meeting industrial energy needs at a large scale.
What Is Ethanol Fuel?
Ethanol fuel or bioethanol is a liquid fuel produced through the fermentation process of biomass, such as sugarcane, corn, cassava, and other biological feedstocks.
Ethanol is classified as a renewable energy source because it comes from sources that can be cultivated again. This characteristic makes ethanol a potential alternative for reducing dependence on petroleum-based fuels and supporting emission reduction efforts.
The use of ethanol has long been associated with the transportation sector, particularly as a blending component in vehicle fuel.
However, its use is not limited to that sector alone. Ethanol is also starting to be utilized in various energy applications, including for some needs in the industrial sector. This development makes ethanol worth examining further as one of the alternative fuels for industrial energy needs.
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Where Is Ethanol Fuel Used?
The use of ethanol is currently most widespread in the transportation sector as a gasoline blend. Beyond that, ethanol has also been used in power generation and some industrial thermal process applications, although its implementation is still far more limited.
Vehicle Fuel Blending
The most widespread current use of ethanol is as a gasoline blend, such as E10 (10% ethanol), E15 (10.5 to 15% ethanol), and E85 (51 to 83% ethanol) for flex-fuel vehicles.
In the United States, more than 98% of gasoline contains ethanol, with E10 being the most common blend. Brazil also has widespread ethanol use, including through flex-fuel vehicles that can run on various compositions of gasoline and ethanol.
Ethanol-Fueled Power Plants
One fairly well-known commercial implementation of ethanol is the Juiz de Fora Power Plant in Minas Gerais, Brazil.
In 2010, Petrobras and GE operated a modified GE LM6000 gas turbine capable of running on sugarcane-based ethanol as well as natural gas in dual-fuel mode. This project is recorded as the world’s first commercial-scale use of sugarcane-based ethanol in a gas turbine for power generation.
Use of Ethanol in Boilers and Industrial Processes
Ethanol can also be used as boiler fuel to generate steam or as a heat source in industrial thermal processes.
This application is generally found at industrial facilities directly integrated with the bioethanol supply chain, such as sugar mills, chemical manufacturing facilities, food and beverage industries, and the pharmaceutical sector.
However, compared to its use as a gasoline blend, the utilization of ethanol for boiler and industrial process needs is still relatively narrow due to limitations in price, supply continuity, and fuel infrastructure.
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Can Ethanol Become the Primary Energy Source for Industry?
Technically, ethanol can be used as an energy source for certain applications, including power generation and boilers, although its implementation remains very limited.
However, for widespread use, ethanol is not yet capable of becoming the primary energy source for most industrial sectors.
Ethanol does offer advantages as a renewable fuel and has the potential to produce lower lifecycle emissions compared to some fossil fuels. However, implementation at an industrial scale faces a number of challenges.
Ethanol has a lower calorific value per unit volume compared to diesel and LNG (Liquefied Natural Gas), so it requires a larger volume of fuel to produce equivalent energy.
In addition, its production depends on the availability of biomass and conditions in the agricultural sector, while its distribution, storage, and supply are not yet widely available in all regions.
These factors mean that the use of ethanol as a primary energy source still needs to be considered based on the characteristics and needs of each industry.
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What Does Industry Need to Consider When Choosing an Energy Source?
For sectors such as power generation, smelting, mining, manufacturing, cement plants, and maritime industries, energy is an important part of operational continuity. Supply disruptions can directly affect productivity and increase operational costs.
For this reason, choosing an energy source cannot be based solely on its emission level. Industries also need to ensure that the energy source is capable of consistently meeting operational needs.
Some factors that need to be considered when choosing an energy source include:
- Supply reliability: Fuel availability must be consistent to prevent operational disruptions.
- Operational efficiency: The energy source needs to be capable of generating energy efficiently in accordance with industrial needs.
- Energy capacity: Capable of meeting industrial energy needs at a large and continuous scale.
- Infrastructure readiness: Adequate distribution, storage, and supporting infrastructure facilities are available.
- Long-term costs: Prices and operational costs need to remain competitive throughout the period of use.
- Emission targets: Supporting the company’s emission reduction targets and energy transition strategy.
Accordingly, a low-emission fuel cannot necessarily replace a primary energy source outright if it is not yet capable of meeting industrial operational needs reliably and sustainably.
Read More: Why LNG Is Making Modern Manufacturing More Profitable
Why Is LNG Still a More Realistic Alternative for Industry?
Ethanol has potential as part of the energy transition, but its application as a primary energy source still faces a number of limitations.
For industries that require large amounts of energy and operate continuously, supply reliability, energy capacity, and infrastructure readiness are important considerations for ensuring operations continue to run without disruption.
Under these conditions, Liquefied Natural Gas (LNG) remains one of the more realistic alternatives for various industrial needs. LNG is capable of providing energy at a large scale with a stable supply, while the LNG supply chain and infrastructure have also developed across various regions.
LNG produces lower greenhouse gas and air pollutant emissions compared to coal and oil, making it a suitable solution for industries seeking to maintain regulatory compliance.
The choice to use LNG naturally needs to be adjusted to the energy needs, operational characteristics, facility location, and available infrastructure of each company. With the right approach, LNG can become part of an industrial energy strategy to maintain operational reliability.
PGN LNG Indonesia supports these needs through the provision of LNG solutions that can be tailored to the operational needs of customers. With the infrastructure support we have, we are ready to help companies utilize LNG more optimally as part of a long-term energy strategy.
Find out what solutions we provide for your industry here: LNG Provider in Indonesia.
References
- DOE. Accessed 2026. Ethanol Fuel Basics
- EIA. Accessed 2026. Biofuels explained
- EIA. Accessed 2026. How much ethanol is in gasoline, and how does it affect fuel economy?
- General Electric. Accessed 2026. Brazil Energy Milestone: GE, Petrobras Using Sugarcane-Based Ethanol to Produce Electricity
