Brazilian ethanol forecasted to continue growth
Sugarcane-based ethanol fuel is expected to provide for up to 75% of Brazil's light vehicle fuel market by 2020, the head of the state-run oil company Petrobras said.
Chief executive of Petrobras Jose Sergio Gabrielli, claimed that the consumer demand for ethanol is growing because Brazilians are buying more ethanol fuel. He stated that one of the reasons for this was because 90% of all new car sales in Brazil now include ethanol compatible flex-fuel engine technology.
Locally, the biofuel retails for just over 90 centavos (€0.35) a litre, which is less than half the price of petrol, which legally contains a 25% ethanol blend, in the main urban centres in the centre-south regions.
The growth in Brazil's flex-fuel car market is unique in the world due to Brazil's capacity to produce and distribute massive quantities of ethanol on the retail fuel market at competitive prices. Currently ethanol controls just under half of the light vehicle fuel market, with petrol taking up most of the rest.
Elsewhere in Brazil operators of three separate billion-dollar Brazilian ethanol pipeline projects announced that they are open to coordinating efforts to bring the biofuel from new distant production areas to the main local consumer and export markets.
The joint venture of Petrobras, Japan's trading company Mitsui and local construction company Camargo Correa will see investments of $1.5 billion in the project, which is expected to be completed in 2012, transporting 12 billion litres per year,
The goal of the pipeline would be to link Uberaba in Minas Gerais state, to the sugarcane and refining centre of Paulinha in Sao Paulo state, and then to an export terminal in Sao Sebastiao and Ilha d'Agua in Rio de Janeiro is due to start operating in 2010.
Chief executive of Petrobras Jose Sergio Gabrielli, claimed that the consumer demand for ethanol is growing because Brazilians are buying more ethanol fuel. He stated that one of the reasons for this was because 90% of all new car sales in Brazil now include ethanol compatible flex-fuel engine technology.
Locally, the biofuel retails for just over 90 centavos (€0.35) a litre, which is less than half the price of petrol, which legally contains a 25% ethanol blend, in the main urban centres in the centre-south regions.
The growth in Brazil's flex-fuel car market is unique in the world due to Brazil's capacity to produce and distribute massive quantities of ethanol on the retail fuel market at competitive prices. Currently ethanol controls just under half of the light vehicle fuel market, with petrol taking up most of the rest.
Elsewhere in Brazil operators of three separate billion-dollar Brazilian ethanol pipeline projects announced that they are open to coordinating efforts to bring the biofuel from new distant production areas to the main local consumer and export markets.
The joint venture of Petrobras, Japan's trading company Mitsui and local construction company Camargo Correa will see investments of $1.5 billion in the project, which is expected to be completed in 2012, transporting 12 billion litres per year,
The goal of the pipeline would be to link Uberaba in Minas Gerais state, to the sugarcane and refining centre of Paulinha in Sao Paulo state, and then to an export terminal in Sao Sebastiao and Ilha d'Agua in Rio de Janeiro is due to start operating in 2010.
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