Ethanol price in Spain

The evolution of the E85 ethanol price in Spain has been influenced by various factors, such as the cost of ethanol production, fluctuations in the global energy market, and European and national environmental policies.

In the period between 2020 and 2022, the price of E85 ethanol in Spain showed a constant upward trend. In 2020, the average price of E85 ethanol was around €0.90/litre. During this year, demand for alternative fuels began to recover after the fall caused by the COVID-19 pandemic.

In 2021, the price of E85 ethanol rose to approximately €1.05/litre. This increase was driven by the increase in the price of oil, which indirectly affected the cost of gasoline mixed in E85, as well as by an increase in demand for biofuels due to European policies on decarbonization.

By 2022, the price of E85 ethanol in Spain stabilised at around €1.10/litre. This slight increase was due to the global economic recovery, which brought with it an increase in demand for both fossil and alternative fuels.

In 2023, the price of E85 ethanol in Spain continued its upward trend, reaching an average of €1.20/litre. This increase was driven by factors such as rising ethanol production costs due to inflation, geopolitical tensions affecting fuel prices, and a growing interest in vehicles that can use E85 due to its environmental benefits.

By 2024, the price of E85 ethanol in Spain is expected to be around €1.30/litre. This anticipated increase is due to several factors, including the adoption of stricter carbon emissions regulations across Europe, a higher cost of ethanol production due to global inflation, and a sustained increase in demand for biofuels such as E85.

The price of E85 ethanol in Spain is influenced by a number of factors, including:

• Ethanol Price: Ethanol is the main component of E85, so its price directly affects the price of E85. Ethanol prices can vary depending on global supply and demand and production costs.
• Gasoline Price: Although E85 contains 85% ethanol, the remaining 15% is gasoline. Therefore, fluctuations in the price of gasoline also affect the price of E85.
• Environmental Policies: European and national regulations seeking to reduce emissions of polluting gases encourage the use of E85, which in turn can affect its price due to increased demand.
• Production Costs: Ethanol production costs can vary due to factors such as the price of raw materials (corn, sugar cane, etc.), transportation costs, and inflation.
• Market Demand: The adoption of FlexFuel vehicles and awareness of climate change are driving demand for alternative fuels such as E85, which can cause prices to rise.

The forecast for the price of E85 ethanol in Spain in 2025 suggests a possible continuation of the upward trend, with an expected price that could reach €1.40/litre. This estimate is based on several factors:

• Increased Demand for Biofuels: As emissions reduction policies become stricter and environmental awareness grows, demand for biofuels such as E85 ethanol is expected to increase.
• Technological Innovations in Ethanol Production: Improvements in ethanol production processes could help contain costs, but pressure on demand could keep prices high.
• Environmental Regulation: European regulations on carbon emissions reduction will continue to promote the use of cleaner fuels such as E85, increasing their demand and, potentially, their price.
• Geopolitical and Economic Factors: Fluctuations in global energy markets and geopolitical events will continue to influence price. E85 ethanol, as well as oil and gasoline prices.

The ethanol market in Spain has several operators that play a key role in the production, distribution and marketing of E85 ethanol. The most competitive operators in the market include:

• Repsol: One of the largest players in the Spanish energy sector, Repsol has begun investing in biofuels such as E85 ethanol, distributing it at some of its service stations.
• Cepsa: Cepsa is another major energy operator that has been exploring the biofuel market in Spain, including E85 ethanol, as part of its energy transition strategy.
• BP Spain: BP offers biofuels at some of its service stations and is committed to expanding its offering of cleaner and more sustainable products, such as E85 ethanol.
• Avia: A company that has been betting on alternative fuels and sustainability, offering ethanol options at some of its service stations.
• Ecoenergetic Alternatives: A smaller company that specializes in the distribution of biofuels in Spain, with a focus on offering products such as E85 ethanol.

• https://www.repsol.com
• https://www.cepsa.com
• https://www.bp.com/es_es/spain/home.html
• https://www.aviaenergias.es
• https://www.alternativasecoenergeticas.es
• https://ec.europa.eu/clima/policies/strategies/2020_es
• https://www.boe.es