CORN ETHANOL INVESTMENT COULD HIT BRL 20 BILLION; MARKET SKEPTICISM EMERGES

Brazil aims to raise corn ethanol production to 16 billion liters in the next three years with investments of up to BRL 20 billion. This growth, led by companies such as Novonesis, brings economic advantages, such as higher profit margins than sugarcane ethanol. However, the technique is expensive and requires a lot of biomasses, especially with wood prices rising. The development calls for transit to reach less expensive corn areas outside Mato Grosso. Since ethanol comprises less than one-third of Brazil’s Otto cycle fuel market, experts advise encouraging sustainable development and increasing domestic ethanol consumption. Within ten years, ethanol should surpass gasoline as a competitive fuel and grab forty percent of the Brazilian market.
Source: RPA News (*Translated by Ia Niani)