Companies in Brazil to focus more on expanding ethanol capacity


Due to strong local demand, companies in the sugar and ethanol industry in Brazil are eyeing to invest in expanding capacity to produce more ethanol. The falling prices of sugar in the international market has helped Brazil to emphasise more on ethanol production.

According to the reports, several plants in Brazil are building new distillation installations in some of their sites to produce more ethanol next year.

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. It is expected that the mills will allocate more sugarcane towards ethanol output because of its huge demand. Sugar output in Brazil is also likely to decline from expected production as mills are likely to divert less cane for sugar.

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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