19 October 2007 00:15 [Source: ICIS news]
By Stefan Baumgarten
TORONTO (ICIS news)--Brazil is not likely to build up more methanol production capacity despite rising domestic demand and its trade deficit in the product, two industry sources said on Thursday.
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Demand growth for methanol was primarily driven by its use in downstream wood-related chemicals products, said Modolin. That sector was seeing strong growth mainly due to the shorter time for trees to grow in
Fernandez and Modolin also pointed to the increasing use of methanol in biodiesel, where it is used as a re-agent.
Fernandez said methanol requirements would increase to 80,000 tonnes/year in 2008 from some 54,000 tonnes this year, due to
The executives added that
They ruled out ethanol replacing methanol as a re-agent in biodiesel, citing cost and technical reasons.
It would take about double the volume of ethanol to fulfil the same function methanol has in biodiesel, they said, adding that this factor made the use of ethanol in biodiesel prohibitively expensive.
Prosint’s Fernandez pointed to a large
“If ethanol was feasible in biodiesel, they [the customer] would be the first to use it,” he added.
While methanol demand kept growing, the market would be too small for the foreseeable future to justify separate
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