The world’s two biggest ethanol producers – Brazil and USA – which together produced around 34bn liters (approximately 50% each), are working towards a common policy to increase production of the renewable-resource fuel.
Go deeper with GlobalData
A privately-run committee with the participation of the Inter-American Development Bank has recently been formed to monitor world demand for the product, the increase of capacity and to research new raw materials (in addition to sugar cane in Brazil and corn in the USA). One of the main objectives is to turn ethanol into a commodity to enable international trading.
There are ambitious projects in both countries. Brazil has ongoing private investments totalling $10bn which are likely to double production within the next four years to 30bn litres yearly. The US plans to reach 50bn litres in five years, which would overtake Brazil as top world producer.
One of the key advantages of ethanol is a sharp cut in CO2 generation, as the gas engines emit is compensated for by photosynthesis during plant growth. In Brazil, which runs 100% ethanol engines and uses cane to generate electricity and vapour at distilleries, the CO2 cycle is practically closed, ie all emitted CO2 is effectively captured back at the sugar cane fields.
Fernando Calmon
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
