Brazil to redouble ethanol-production efforts


On paper, the United States’ recent decision to knock down its trade barriers to imported ethanol fuel creates an opening for Brazil, the world’s second leading ethanol producer. Brazil’s sugarcane-based ethanol is cheaper to make than the U.S. corn-based variety and, unlike corn ethanol, meets U.S. standards for biofuels deemed “advanced” in terms of their carbon footprint. So will Brazil take advantage of the new opportunity? The answer, according to experts, is: yes, but not right away. That’s because Brazil’s ethanol industry needs to ramp up its capacity after several years of flat investment in sugarcane plantations and refineries. Still, market conditions within Brazil already have begun favoring increased ethanol output. Industry analysts say that this, combined with the U.S. opening, will spur... [Log in to read more]

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