The world's top ethanol fuel producers in 2011 were the United States with 13.9 billion U.S. liquid gallons (bg) (52.6 billion liters) and Brazil with 5.6 bg (21.1 billion liters), accounting together for 87.1% of world production of 22.36 billion US gallons (84.6 billion liters). See pp. 3, 8, 10 22 and 23. Strong incentives, coupled with other industry development initiatives, are giving rise to fledgling ethanol industries in countries such as Germany, Spain, France, Sweden, India, China, Thailand, Canada, Colombia, Australia, and some Central American countries.

Main producers The following table summarizes annual ethanol fuel production by the main producer countries or regions: +Annual fuel ethanol production by country (2015–2024)(Millions of U.S. liquid gallons per year)World Rank (2024)Country/Region% of World Production2024202320222021202020192018201720162015?1 52%16,21915,58015,36115,01613,94115,77816,09115,93615,41314,807228%8,7808,4707,4007,3208,1008,5907,9906,6506,7507,20035%1,6301,5101,22095053051043020028019045%1,4401,3901,4201,3801,3101,3701,4501,4201,3601,36054%1,2001,0709609009401,00077080067077061%46445444743442952046046046045071%36034038035039043039039034031081%310310310270210280290290240220*Rest of World3%807806722690630522529454487393 World total100%31,21029,93028,22027,31026,48029,00028,40026,60026,00025,700

Brazil

Brazil has the largest and most successful bio-fuel programs in the world, involving production of ethanol fuel from sugarcane, and it is considered to have the world's first sustainable biofuels economy. In 2006 Brazilian ethanol provided 18% of the country's road transport sector fuel consumption needs, Table 2. Report is based in 2006 data and by April 2008, more than 50% of fuel consumption for the gasoline market. As a result of the increasing use of ethanol, together with the exploitation of domestic deep water oil sources, Brazil reached in 2006 a volumetric self-sufficiency in oil supply, but is not effectively self-sufficient, since most of its locally extracted oil is heavy. Renewable Energy Access, 15 May 2006.New Rig Brings Brazil Oil Self-Sufficiency The Washington Post, 21 April 2006.

Until 2005 Brazil was the world's top producer of ethanol fuel when it was surpassed by the United States. Together both countries were responsible in 2011 for 87.1% of the world's ethanol fuel production. In 2009 Brazil produced 27.5 billion liters (7.26 billion U.S. liquid gallons), representing 35.9% of the world's total ethanol used as fuel. Sugar cane plantations covered 3.6 million hectares of land for ethanol production, representing just 1% of Brazil's arable land, with a productivity of 7,500 liters of ethanol per hectare, as compared with Germany maize ethanol productivity of 3,000 liters per hectare.

The ethanol industry in Brazil is more than 30 years old and even though it is no longer subsidized, production and use of ethanol was stimulated through: Low-interest loans for the construction of ethanol distilleries Guaranteed purchase of ethanol by the state-owned oil company at a reasonable price Retail pricing of neat ethanol so it is competitive if not slightly favorable to the gasoline-ethanol blend Tax incentives provided during the 1980s to stimulate the purchase of neat ethanol vehicles.

Guaranteed purchase and price regulation were ended some years ago, with relatively positive results. Ethanol producers in the state of São Paulo established a research and technology transfer center that has been effective in improving sugar cane and ethanol yields.

There are no longer light vehicles in Brazil running on pure gasoline. Since 1977 the government made mandatory to blend 20% of ethanol (E20) with gasoline (gasohol), requiring just a minor adjustment on regular gasoline motors. Today the mandatory blend is allowed to vary nationwide between 18% and 27.5% ethanol (E27) and it is used by all regular gasoline vehicles and flexible-fuel vehicles. The Brazilian car manufacturing industry developed flexible-fuel vehicles that can run on any proportion of gasoline and ethanol. Introduced in the market in 2003, these vehicles became a commercial success, reaching the milestone of 10 million vehicles produced in March 2010, and 15 million in January 2012. The ethanol-powered "flex" vehicles, as they are popularly known, are manufactured to tolerate hydrated ethanol (E100), an azeotrope composed of 95.6% ethanol and 4.4% water.

The first flex motorcycle was launched to the market by Honda in March 2009, and a second model in September 2009. By the end of 2009, both Honda flexible-fuel motorcycles had sold a total of 183,375 units, representing an 11.4% market share of the Brazilian new motorcycle sales in that year. Two other flex-fuel motorcycles manufactured by Honda were launched in October 2010 and January 2011. During 2011 a total of 956,117 flex-fuel motorcycles were produced, raising its market share to 56.7%. Cumulative production of the four available flex fuel models since 2009 reached 1.48 million units in December 2011. and 2011.

Since 2009, the Brazilian ethanol industry has experienced financial stress due to the credit crunch caused by the 2008 financial crisis; poor sugarcane harvests due to unfavorable weather; high sugar prices in the world markets that made it more attractive to produce sugar rather than ethanol; and other domestic factors that resulted in a decline of its annual production despite a growing demand in the local market. Brazilian ethanol fuel production in 2011 was 21.1 billion liters (5.6 billion U.S. liquid gallons), down from 26.2 billion liters (6.9 billion gallons) in 2010. A supply shortage took place for several months during 2010 and 2011 and prices climbed to the point that ethanol fuel was no longer attractive for owners of flex-fuel vehicles; the government reduced the minimum ethanol blend in gasoline to reduce demand and keep ethanol fuel prices from rising further; and for the first time since the 1990s, ethanol fuel was imported from the United States.

United States

+U.S. fuel ethanol production and imports (2001–2010)(Millions of U.S. liquid gallons)YearProductionImportsDemand20011,770n/an/a20022,130462,08520032,800612,90020043,4001613,53020053,9041354,04920064,8556535,37720076,5004506,84720089,0005569,637200910,600 190 10,940201013,230 10 13,184 Demand figures includes stocks change and small exports in 2005

The United States produces and consumes more ethanol fuel than any other country in the world. Ethanol use as fuel dates back to Henry Ford, who in 1896 designed his first car, the "Quadricycle" to run on pure ethanol. Then in 1908, he produced the famous Ford Model T capable of running on gasoline, ethanol or a combination of both. Ford continued to advocate for ethanol as fuel even during Prohibition.

Most cars on the road today in the U.S. can run on blends of up to 10% ethanol, and motor vehicle manufacturers already produce vehicles designed to run on much higher ethanol blends. In 2007 Portland, Oregon, became the first city in the United States to require all gasoline sold within city limits to contain at least 10% ethanol.Introduction: The Clean Tech Opportunity p. 3. As of January 2008, three states — Missouri, Minnesota, and Hawaii — require ethanol to be blended with gasoline motor fuel. Many cities also require ethanol blends due to non-attainment of federal air quality goals.

Several motor vehicle manufacturers, including Ford, Chrysler, and GM, sell flexible-fuel vehicles that can use gasoline and ethanol blends ranging from pure gasoline all the way up to 85% ethanol (E85). As of early 2013, there were about 11 million E85-compatible vehicles on U.S. roads, though actual use of E85 fuel is limited, not only because the ethanol fueling infrastructures is limited, For a complete and updated listing, go to www.e85refueling.com but also because many owners are not aware their vehicle is flex-fuel capable. , there were 3,028 fueling stations selling E85 in the U.S.

There are many promising crops for ethanol production that are gaining in popularity. Among these are algae, miscanthus, switchgrass, and sugarcane. Other options are what are known as cellulosic biomass which includes plant parts currently wasted in contemporary industrial, chemical agriculture like wheat stalks, corn stalks, and other biomass left after harvesting. Many of these crops yield much higher ethanol amounts per acre.Miscanthus

The production of fuel ethanol from corn in the United States is controversial for a few reasons. Production of ethanol from corn is 5 to 6 times less efficient than producing it from sugarcane. The reason that corn has been notoriously used for ethanol production is because farmers are either paid to destroy crops or to not grow corn crops. Another reason is that the cost of processing and transporting raw corn can be more expensive than transporting and processing it in to ethanol fuel. Corn production is highly dependent upon government subsidies, so naturally ethanol derived from corn is also highly dependent on government subsidies. Contrary to what most would claim, ethanol is not a food-versus-fuel issue. Corn, along with other crops that have been distilled are still a usable food source for cattle. Known as dried distillers grains, it is proven to be significantly healthier and easier for cattle to digest. In October 2008, the first "biofuels corridor" was officially opened along I-65, a major interstate highway in the central United States. Stretching from northern Indiana to southern Alabama, this corridor consisting of more than 200 individual fueling stations makes it possible to drive a flex-fueled vehicle from Lake Michigan to the Gulf of Mexico without being further than a quarter tank worth of fuel from an E85 pump.I-65 'official' biofuels corridor

On 23 April 2009, the California Air Resources Board approved the specific rules and carbon intensity reference values for the California Low-Carbon Fuel Standard (LCFS) that will go into effect on 1 January 2011. During the consultation process there was controversy regarding the inclusion and modeling of indirect land use change effects. After the CARB's ruling, among other criticisms, representatives of the US ethanol industry complained that this standard overstates the environmental effects of corn ethanol, and also criticized the inclusion of indirect effects of land-use changes as an unfair penalty to domestically produced corn ethanol because deforestation in the developing world is being tied to US ethanol production. The initial reference value set for 2011 for LCFS means that Mid-west corn ethanol will not meet the California standard unless current carbon intensity is reduced.

A similar controversy arose after the U.S. Environmental Protection Agency (EPA) published on 5 May 2009, its notice of proposed rulemaking for the new Renewable Fuel Standard (RFS). The draft of the regulations was released for public comment during a 60-day period. EPA's proposed regulations also included the carbon footprint from indirect land-use changes. On the same day, President Barack Obama signed a Presidential directive with the aim to advance biofuels research and improve their commercialization. The Directive established a Biofuels Interagency Working Group comprising three agencies, the Department of Agriculture, the Environmental Protection Agency, and the Department of Energy. This group will develop a plan to increase flexible fuel vehicle use and assist in retail marketing efforts. Also they will coordinate infrastructure policies impacting the supply, secure transport, and distribution of biofuels. The group will also come up with policy ideas for increasing investment in next-generation fuels, such as cellulosic ethanol, and for reducing the environmental footprint of growing biofuels crops, particularly corn-based ethanol.