Will E85 conversion still be profitable in 2024?

Recent years have seen a marked increase in fuel prices, including for E85 bioethanol. Since 2021, the price of E85 has risen considerably, from €0.70 per litre at the start of 2022 to around €1.15 per litre at the start of 2023, an increase of 64%. Despite this increase, Superéthanol-E85 remains significantly cheaper than other fuels.

In comparison, at the start of 2023, the average price of SP95-E10 was €1.84/litre (an annual increase of 10%), diesel €1.85 (an increase of 20%) and SP98 €1.90/litre (an increase of 10%). These figures clearly show that all fuels have seen increases, with E85 remaining a more economical option despite a higher rise.

The rise in the price of E85 can be explained by a number of factors, mainly linked to widespread inflation in agricultural raw materials and energy, particularly natural gas. Bioethanol producers, who often come from the sugar or starch industries, are heavily dependent on gas for various stages of production, such as the manufacture of nitrogen fertilisers and distillation.the gas crisis in 2022, exacerbated by the conflict in Ukraine, has led to high prices.

In addition, the impact of high diesel costs for agricultural machinery and ethanol transport is also influencing prices.

However, for 2024, a fall in gas costs is expected. The tariffs negotiated for this year reflect a fall in gas prices, offering the prospect of a fall in the price of ethanol, estimated on average at €0.90/l. This suggests a potential easing of pressure on E85 prices, making it even more economical.

Using E85 bioethanol offers significant economic and environmental benefits compared with unleaded petrol.

Here are a few calculations to help you understand!

Let's take the example of a car travelling 17,000 kilometres a year, with an average fuel consumption of 7 litres per 100 kilometres.

By opting for E85, you could make substantial savings. You could save around €80 a month, reducing your annual fuel budget from €2,261 to €1,285, a saving of €976. These calculations take into account the 20% extra consumption associated with the use of ethanol, due to its lower energy density compared with conventional petrol.

These figures show that, despite slightly higher consumption, E85 remains an economically advantageous and ecologically beneficial option, offering a real alternative to traditional fuels.

There are two main options for converting a vehicle to ethanol:

• Engine reprogramming: E85 Flex-Fuel conversion, costing around €590, changes the engine parameters to make it compatible with ethanol and petrol. With this solution, the investment pays for itself in just 7 months after reprogramming, thanks to the savings made on fuel.

• Approved EFlexFuel E85 box: At a cost of around €1,000, this system pays for itself in around 1 year. This timeframe is justified by the substantial savings made on fuel thanks to the use of ethanol, offsetting the initial cost of installation.

Each option offers an effective way of reducing fuel costs over the long term, while contributing to greener driving.