Sugar-cane processors in Brazil, including Bunge Ltd. (BG) and Louis Dreyfus SAS, are preparing to increase their ethanol exports to the U.S., where oil companies must expand their use of biofuels.
Ethanol producers had registered 107 mills with the U.S. Environmental Protection Agency at the beginning of October, up from 55 in February, the Sao Paulo-based cane industry association Uniao da Industria de Cana-de-Acucar said today on its website.
The U.S. may increase its use of ethanol made from cane because it’s classified under the EPA’s Renewable Fuel Standard as an advanced biofuel and producing it generates less carbon- dioxide emissions than domestically produced corn ethanol, which is not labeled an advanced fuel.
“This recognition makes sugar-cane ethanol desirable in the US market, so it makes sense for Brazilian mills to prepare for this opportunity,” Leticia Phillips, Unica’s North America representative, said in the statement. Brazilian ethanol can reduce greenhouse-gas emissions by as much as 91 percent compared to gasoline, she said.
U.S. oil companies will be required to blend 36 billion gallons (136 billion liters) of biofuels with petroleum-based fuel in 2022, up from 14 billion this year, according to the EPA.