Sao Paulo slaps 3-month ban on ethanol permits

19 May 2008 17:53  [Source: ICIS news]

HOUSTON (ICIS news)--Brazil’s Sao Paulo state has announced a three-month ban on construction permits for ethanol plants to evaluate how additional production of the biofuel may impact the environment, a spokesperson said on Monday.

The ruling also applies to expansion permits, according to a decree published in the state’s official register.

Sao Paulo industry association Unica declined to comment.

Sao Paulo is Brazil’s ethanol heavyweight, accounting for about 60% of the country’s total production of the biofuel.

In 2007, the state had some 280 ethanol mills in operation, with production estimated at about 13bn litres, according to figures from Unica.

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By: William Lemos
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