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Global ethanol production declined in 2012

A new report from the Worldwatch Institute says  the combined global production of ethanol and biodiesel fell slightly from 2011 to 2012. That was the first decline since 2000. Ethanol production actually declined for the second consecutive year thanks to high corn prices while biodiesel production increased slightly.

U.S. ethanol production declined 4 percent in 2012, in fact the U.S. became a net importer of ethanol during the year. Brazil’s production increased 3 percent reflecting a drop in sugar prices.

The top-five ethanol-producing countries in 2012 were the U.S. with more than 50 billion liters, Brazil with more than 21 billion liters, the European Union combined for more than 4.5 billion liters, China produced just over 2 billion and Canada was just under 2 billion liters.

The U.S. was also the world’s largest biodiesel producer with more than 3.5 billion liters followed by Argentina with just under 3 billion while Germany and Brazil produced more than 2.5 billion each.

The report goes on to say biofuel demand is “strongly driven” by mandates and subsidies. Seventy-six countries, states and provinces have some type of mandate. Global subsidies were estimated to be well over $20 billion U.S. dollars in 2012.

The report also notes global investment in biofuels declined 40 percent from 2011 to 2012. Investment within the G-20 nations has declined every year from 2007 through 2012.

Worldwatch Institute is an independent research organization based in Washington D.C. that works on energy, resource and environmental issues.