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Brazil’s Expected Rise in Ethanol Demand to Be Met by Corn-Based Fuel

Submitted by on February 8, 2018 – 9:41 amNo Comment

by Marcelo Teixeira  (Reuters)  An expected increase in ethanol demand in Brazil, boosted by the country’s economic recovery and a new programme to raise biofuel use, will initially be met by fuel produced from corn, an industry official told Reuters on Thursday.

Ricardo Tomczyk, who heads Brazil’s newly created National Union for Corn Ethanol (UNEM), said the product has a key advantage over cane-based ethanol: Production capacity can be added quickly.

Another factor fuelling ethanol demand is the RenovaBio, a federal programme to increase biofuels use. Government officials are currently fine-tuning regulations, which will set emissions reduction targets for fuel distributors that will be met by increasing trading volumes of ethanol.

One plant expansion and four new facilities have been announced in the last weeks. Three out of the four new projects will be attached to existing cane mills. There are synergies if plants are operated together, such as the use of biomass from cane processing for energy generation.

“Mato Grosso should be producing some 3 or 4 billion litres per year of corn ethanol in five years, from around 400 million litres currently,” said Tomczyk.  READ MORE

ICM: Corn ethanol opportunities in South America continue to grow (Ethanol Producer Magazine)

Second wave possible for ethanol sector (Western Producer)

 

Excerpt from Ethanol Producer Magazine/ICM: In 2017, Brazil produced an estimated 27.7 billion liters (7.32 billion gallons) of ethanol. The demand for ethanol versus the current level of production has a gap of approximately 3 billion liters. This gap is expected to grow to 5 billion liters by 2022, which is currently filled by imports. Brazil’s recent increase on taxation of imported ethanol will stimulate growth in local production.

Argentina has several ethanol plants in operation with corn and sugarcane as feedstocks. In 2016, ethanol production in the country was 889 million liters, production in 2017 increased by around 13 percent, to 1 billion liters, while industry analyst forecast a record production year of 1.12 billion liters in 2018.  Argentina’s economy has shown resilience and positive recovery signs including the biofuels industry.

Paraguay is another example of a South American country with a favorable biofuels program utilizing cane and corn feedstocks. Paraguay is expanding its local ethanol production which will have a vast positive impact on its economic growth. 

ICM is actively engaged in supporting the expanding ethanol markets in the countries of Argentina, Brazil and Paraguay. ICM’s technologies and equipment solutions are currently used in ACA Bio Cooperative Limitada (ACA Bio), a 400 cubic meter per day nameplate capacity (40 MMgy) in Villa Maria, Cordoba, Argentina, FS Bioenergia, Brazil’s first standalone corn ethanol plant, a 530 cubic meter per day nameplate capacity (50 MMgy) in Lucas do Rio Verde, Mato Grosso, Brazil, and several other bolt-on integrated technologies in Paraguay.

ICM’s experience in South America, backed by years of knowledge in the industry, provides the ability to enhance existing facilities. Traditional sugarcane ethanol plants can integrate corn feedstock into their business model. The addition of corn ethanol processing can significantly increase profitability.  READ MORE

 

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