São Martinho, one of Brazil’s largest sugar and ethanol groups, is investing to be able to produce only sugar, and anhydrous ethanol at its plants in São Paulo next year. This is an attempt to avoid harsh conditions in the hydrous ethanol market, said Felipe Vicchiato, the CFO of the company. According to the company, the blend will depend on market conditions, however, the moment is for anhydrous. Brazil’s current standards require a 27% blend of ethanol in gasoline. “We are investing to make 100% anhydrous in the plants in São Paulo so that the plants would produce sugar, and anhydrous ethanol”, said Vicchiato. For him, it would be possible to slightly reduce “(the impact of) the price volatility of hydrous ethanol”.
Sources: Reuters/Nova Cana (*Translated by Ia Niani)