In order to fulfil the shortage, Brazil may continue to import ethanol from the United States, as per analysts from S&P Global Platts. The surge in ethanol production will not be enough to cope up with rising demand.
In the coming years, the demand for ethanol in Brazil will increase by around 2.5 per cent per year.
According to the Reuters, Beatriz Pupo, senior biofuels analyst for Platts, said, “Even with new capacity coming from corn-based ethanol plants, that won’t be enough to supply the increasing demand. So, Brazil will continue to be a net importer of the fuel.”
The falling prices of sugar in the international market has helped Brazil to emphasise more on ethanol production. The excess production of sugar kept the prices low, and the mills turned back to their favourite ethanol production as the gasoline prices have increased. Brazil, who usually goes for ethanol production from sugarcane juice, is also aiming to produce ethanol from corn. Sao Martinho SA, one of the country’s largest sugar and ethanol producers, plans to build a facility to produce ethanol from corn in the state of Goias.
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