Global fuel ethanol production to surpass 90 billion litres in 2014, peaking at 90.38 billion litres this year, according to the Global Annual Ethanol Production Forecast, released by the Global Renewable Fuels Alliance Thursday.
Despite a fragile global economy, the GRFA is predicting a nearly 2.7% growth in global ethanol output this year, up from 88 billion litres produced in 2013 to 90.38 billion litres in 2014.
"While forecasts of global economic growth remain sluggish, the global ethanol industry continues to increase its production and contribution to the global economy," said Bliss Baker, spokesperson for the GRFA.
The latest data from F.O. Licht shows significant growth in most major ethanol producing regions in 2014. The world's two largest producers, Brazil and the United States, are forecast to maintain and increase their production by almost 2.5% respectively.
Another major producing region, the European Union, is forecast to see ethanol production jump more than 8% this year. Africa, an emerging region with biofuel production potential is forecasted to see a growth of more than 136% in ethanol production in 2014.
"Although total volumes of ethanol produced in emerging regions like Africa are lower in comparison to more established producers, a production increase of over 130% is incredible because we know that these production increases will drive new investment in agricultural and job creation while reducing Africa's reliance on imported oil," Baker said.
A recent study, conducted by ABF Economics, titled "Contribution of the Ethanol Industry to the Economy of the United States" examined the impact of the U.S ethanol industry in 2013 on job creation, the economy, household income, and foreign oil displacement. It found that the 50.4 billion litres of ethanol produced in 2013 created 86,503 jobs, sustained an additional 300,277 indirect and induced jobs while contributing $44 billion to the United States' Gross Domestic Product and added $30.7 billion to household incomes.
"This latest study by the RFA confirms that a biofuel industry is a significant contributor to domestic economies and reinforces a 2012 GRFA report which found that 2010's global ethanol production supported nearly 1.4 million jobs in all sectors worldwide and contributed over $273 million to the global economy," Baker added.
"With increases in production in most ethanol producing regions and countries, 2014 looks to be another year where the global ethanol industry will continue to make a positive economic contribution globally and again be a bright light in an otherwise dim global economy," he said.