19 September 2006

Brazil Ethanol Exports to Rise Sharply

Brazil is aggressively expanding its sugarcane plantations and expects to more than double its annual exports of alcohol fuel, or ethanol, by 2010, Mines and Energy Minister Silas Rondeau said Monday. Thanks to the rapid expansion of sugarcane areas, the country will export about 2.1 billion gallons of ethanol in 2010, up from current exports of about 790 million gallons, Rondeau said at the Rio Oil and Gas Expo and Conference.

“The potential for exports we have by 2010 is about 8 billion liters, generating about 3.6 million jobs directly and indirectly,” Rondeau said in his opening remarks to the conference, which runs through Thursday.

Some 30,000 people are expected to visit the Expo, where 800 exhibitors from 14 countries are presenting the latest innovations in oil and gas production, refining and exploration, reports the Associated Press.

Rondeau said thanks to an increase in the amount of area where sugarcane is planted Brazil’s production of ethanol is expected to rise to 6.87 billion gallons annually in 2010 up from the current production of around 4.23 billion gallons annually.

Brazil is the world’s second-biggest producer of ethanol after the United States and is the biggest exporter. Brazil also has the world’s largest fleet of ethanol-powered cars – seven out of every 10 new cars sold in Brazil are “flex fuel” vehicles that can run on gasoline, ethanol or any combination of the two.

(Cf. news of Aug. 11, 2006.)

Source: Wisconsin Ag Connection Sept. 13, 2006.

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