Modular 2G Bioethanol production plant

Second-generation (2G) bioethanol represents one of the most advanced and sustainable liquid biofuels available today. Produced from lignocellulosic biomass—such as agricultural residues or non-food crops—it offers a globally carbon-neutral fuel pathway that supports the decarbonization of both light and heavy transport sectors.

Modern gasoline engines can already operate on ethanol blends without modification, and with minimal technical adaptations, vehicles can run on high-ethanol fuels such as E85 (85% ethanol). Furthermore, leading manufacturers like Scania have demonstrated ethanol’s potential as a diesel substitute: in 2015 they introduced a 13L ethanol-optimized engine based on their commercial diesel platform, proving ethanol’s performance and reliability for heavy-duty transport.

Economically, 2G bioethanol production is supported by the European Union’s Renewable Energy Directives (RED I and RED II), which include “double counting” incentives for advanced biofuels—effectively doubling their value toward renewable energy targets.

However, large-scale 2G bioethanol refineries require substantial upfront investment, limiting their deployment. Our solution is a downscale plant design, which reduces initial capital costs by more than 90%, enabling smaller investors, municipalities, and regional producers to enter the market. Despite the reduced scale, unit production costs remain competitive thanks to proven and certified modular components. The process design and licensed intellectual property are provided by a project partner with an established technology track record.

This modular and downscaled approach not only enhances economic accessibility but also provides strategic energy security, particularly for Ukraine, where local feedstocks can be transformed into high-quality bioethanol. Such systems reduce dependence on imported fossil fuels, support rural economies, and align with the EU’s broader sustainability and energy diversification agenda (thus making it a easily accessible market for export if desired).

By combining sustainability, economic feasibility, and strategic resilience, our downscale 2G bioethanol technology bridges the gap between environmental goals and practical implementation—paving the way for a decentralized, circular bioeconomy.