Sales of flexible fuel cars in Brazil may be hit by high ethanol prices, according to Reuters.
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77% of all new light vehicles sold in Brazil in February were flexible fuel models that run on a mix of petrol and ethanol (around 20-25% ethanol). But according to sugar cane analysts Datagro, ethanol prices of ethanol are expected to be unusually high this year. Datagro estimated that flex-fuel car sales would drop back to 60% of the market this year.
Flex-fuel models were first launched in 2004 and have taken a growing share of the car market since then. Brazil has over 30,000 filling stations that sell pure ethanol as fuel for cars and also blend petrol with ethanol at the pump.
Ethanol prices have been rising because of the increased demand for flex –fuel vehicles in Brazil and because of increased export demand for ethanol as an alternative fuel. International sugar prices recently reached 25-year highs. Around half of Brazil’s sugar cane crop is used to produce ethanol.
One of Brazil’s ethanol export markets is the US, which also has ‘millions’ of flexible-fuel vehicles on its roads, according to Reuters.
US farmers also produce ethanol from corn. The government there is currently looking into developing the infrastructure for ethanol production and supply.
According to Susan Cischke, Ford vice president of environmental and safety engineering, there are fewer than 600 filling stations supplying ‘E85’ ethanol in the US.
Speaking at senate energy committee hearing on US energy security earlier this week, she said that US vehicle manufacturers have produced almost 6m flexible-fuel vehicles.
