The great productive potential, coupled to the end of the tariff and subsidies Brazilian ethanol in the US, and the determination by law to limit the production of corn ethanol in the U.S. market, places Brazil as the main country to attract new investments. This is the opinion of Plinio Nastari, president of Datagro.
He said the diversification of production towards ethanol brought great commercial advantage, allowing the mix in 2011 to be 50.8% of sugarcane converted into ethanol, and 49.20% sugar, and that flexibility in changing the industrial mix is being tapped to arbitrate prices of sugar and ethanol, ensuring greater stability of remuneration from production to marketing. “This benefits Brazil for new investment projects in the sugarcane industry,” he recalls.
“Brazil currently goes toward a new and important step in the process of diversifying its sugar economy, represented by the generation of electricity from bagasse and straw.Until 2015, the generation of energy from sugarcane biomass will have increased from the current 4.2 to 9.7 GW of power, “says Nastari.
The company reports that the worldwide demand for renewable energy is growing, but biofuels occupy only 25 million hectares in production of the globe. In this scenario, Brazil produces only 4.9 million hectares of cane destined to ethanol production, from a total of 340 million hectares of farmland in the country.