Opportunities and constraints for implementation of cellulosic ethanol value chains in Europe.

Several EU and neighboring countries have relevant surfaces of land that are currently largely marginal, under-utilized and/or contaminated (MUC). In the last decade, many scientific studies have demonstrated how bioenergy crops have the potential to be grown profitably on this land and can therefore offer a source of income to local populations while contributing to achieving the targets of the new Renewable Energy Directive (REDII). In this context, the paper analyses the main agronomic and techno-economic aspects affecting the uptake of cellulosic ethanol or second generation (2G ethanol) production on MUC lands in the Ivankiv Region of Ukraine, a lower-middle income country, and in the Sulcis area of Sardinia in Italy, a high-income country. The use of MUC lands for the production of 2G ethanol mitigates negative impacts on food security by reducing the risk of indirect land use change (iLUC). The findings suggest that 2G ethanol would be produced at a cost of EUR 936/ton in Italy and EUR 758/ton in Ukraine, with a substantial reduction in greenhouse gas (GHG) emissions. Furthermore, the study describes the main barriers and obstacles to the market uptake of 2G ethanol and analyses the effects of existing policies on the economic feasibility of the fuel production in those countries. Current policies do not allow the production of 2G ethanol to be competitive on the market; the study highlights the need to provide consistent and stable long-term bioenergy policies, including but not limited to financial support, to facilitate market penetration and competitiveness. Image 1 • An agricultural and economic feasibility assessment of cellulosic ethanol production in Ukraine and Italy was developed • A calculation of feedstock production costs and ethanol production costs in those countries was carried out • A sustainability assessment of selected advanced value chains developed on MUC lands was done • Review and assessment of policy framework for the market uptake of cellulosic ethanol in Ukraine and Italy was carried out [ABSTRACT FROM AUTHOR]