Brazilian ethanol exports to total 2.2bn litres in 2004

23 December 2004 20:16  [Source: ICIS news]

SAO PAULO (CNI)--Brazil's ethanol exports are expected to reach 2.2bn litres in 2004, up from 680m litres in 2004, CNI learned Thursday.

 

The increase in exports has been attributed to high oil prices and increased interest in bio-fuels, as well as the substitution of ethanol for methyl tertiary butyl ether (MTBE).

 

In addition to increased exports, Brazilian demand for ethanol is also rising due to the increased popularity of flex-fuel cars, which operate on ethanol, gasoline or a combination of the two.

 

The increase in exports and domestic sales has prompted concerns that Brazil could face ethanol shortages in upcoming months.

 

However, recent data released by the Sao Paulo State Sugarcane Industries Union (Unica) has helped calm concerns of shortages.

 

Through 15 December, Brazilian sugar mills had produced 13.37bn litres, 2.9% more than in the 2003 harvest, according to Unica. 

 

The top markets for Brazilian ethanol include India, the US and Europe. Brazil also is negotiating to begin ethanol exports to Japan, Thailand and China.

 

Brazilian exports to Europe are also expected to increase with demand for ethyl tertiary butyl ether (ETBE).

By: Elizabeth Johnson
+1 713 525 2653

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