Pakistan ethanol producers prepare to enter EU fuel market
Major ethanol producers in Pakistan are stepping up ISCC certification efforts to expand sales into the EU fuel ethanol market. Interest in this segment has increased since Pakistan lost preferential access to the European industrial ethanol market in 2025.
ISCC certification is required for ethanol used to meet EU renewable energy targets. According to the ISCC database, at least eight Pakistani ethanol plants have already received certification this year.
The European fuel market remains attractive due to a significant price gap. RED-compliant ethanol in Europe is assessed at around $1,136–1,150/t FOB ARA, compared with about $790–810/t FOB for Pakistani anhydrous ethanol. Export economics, however, will depend on freight, certification and other compliance costs.
Certified ethanol could command a premium of around $10–20/t over non-certified material. Market participants also expect access to the EU fuel segment to support more bulk shipments, which are generally more economical than ISO tanks for larger volumes.
Competition in the European market is also increasing, including from preferential access granted to some ethanol volumes from Mercosur countries. Even so, Pakistani producers see ISCC certification as the most practical route to expanding fuel ethanol exports to the EU.
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