As expected, the degree of interest from producers, suppliers, experts and the government itself was evident throughout the recent Ethanol Summit 2011 in São Paulo, Brazil.
Organized biennially since 2007 by União da Indústria de Cana-de-Açúcar (Unica), the country’s strongest sugar cane industry conglomerate association, this year the audience was over 1,500 people. Its importance was higher because ethanol has turned out to be the main biofuel in use worldwide, especially here in Brazil.
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To showcase the benefits of reduced carbon dioxide (CO2) emissions from well to wheel – ethanol use and sugar cane crop growth capture more than 80% of tailpipe emissions of the gas – visitors could watch a carbon meter, a digital display of how much less carbon was reaching the atmosphere, thus helping to tame the greenhouse effect, by consuming ethanol instead of fossil fuels (petrol, diesel and CNG).
Last year the 5.8bn US gallons produced supplied 45% of the Brazilian fleet of cars and light commercials. If the preference for flex-fuel engines keeps on attracting nearly 90% of new car buyers, by 2020 the fuel will be running 60% of the country’s fleet.
For such a goal, nearly 16bn US gallons will be needed, a volume that will require an enormous public and private effort. Apparently, funding is not a problem, for Petrobras and two other oil industry giants actively took part in the two-day conference and have already formed associations with Brazilian ethanol producers.
BP Biofuels do Brasil stepped up its presence in the sector by acquiring, for $680m, 83% of Companhia Nacional de Açúcar e Álcool last March. In 2008, it had taken 50% of Usina Tropical Bioenergia.
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By GlobalDataCombined ethanol output capacity of the British oil firm’s subsidiary will climb to 370m US gallons between the two companies.
By far the most important joint venture is Cosan and Shell under a new bioenergy company called Raízen. Cosan runs 23 distilleries in the ethanol, sugar and electric power generation from sugar cane sectors, besides having acquired the complete Esso operation in Brazil in May 2008.
Shell will run the fuel operations and Cosan those of sugar. Ethanol production will rise from 580m US gallons yearly to 1.33bn/year within the next five years.
The oil companies are seeking an assured supply for the up to 10% ethanol blend with petrol in Europe till 2020 announced under European Commission/Energy directives.
