Bloomberg News

Brazil Ethanols Exports to U.S. May Rise 29% Next Crop

February 20, 2013

Brazilian exports of sugar-cane ethanol to the U.S. may rise as much as 29 percent this crop season as oil companies there are mandated to blend more renewable fuels.

Brazil may export as much as 4.5 billion liters (1.19 billion gallons) to the U.S. next harvest season, which begins in April, Julio Maria Borges, director of Sao Paulo-based consulting firm Job Economia e Planajemento Ltda., said today in a telephone interview.

Oil companies in the U.S. are required by the government to mix 2.75 billion gallons of advanced biofuel into their transport fuels this year, said Borges. Advanced biofuel is any renewable fuel that achieves at least 50 percent more greenhouse-gas savings than fossil fuels. Cane-based ethanol and biodiesel from soybeans qualify as advanced biofuels.

“Ethanol is the cheaper option and that looks set to remain the case going forward,” he said.

The quota for advanced biofuel is expected to expand to 21 billion gallons in 2022, creating more export opportunities for Brazilian mills, Borges said.

To contact the reporter on this story: Stephan Nielsen in Sao Paulo at snielsen8@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net


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