SEKAB in sustainable ethanol deal with Brazil

27 May 2008 15:39  [Source: ICIS news]

TORONTO (ICIS news)--Swedish ethanol firm SEKAB said on Tuesday it has reached a supply arrangment with Brazil producers for bioethanol produced under verifiable sustainability criteria, the first such deal in the world.


Brazilian producers would supply SEKAB with sugarcane-based ethanol that was developed and produced in line with strict and verifiable sustainability criteria, covering ethanol's life-cycle from production to end-use.


The criteria, which were in line with demands raised by the UN and other international organisations, would result in an effective reduction in carbon dioxide (CO2) emissions of at least 85% compared with gasoline, SEKAB said


They included requirements for labour conditions and pay and would not allow for the destruction of rainforests in producing the ethanol or the use of child labour, it added.


An independent verification firm would audit the production twice a year, SEKAB said but did not disclose financial terms, supply volumes or the names of the Brazil suppliers.


Last week, German biofuels producer Verbio announced its participation in a sustainable ethanol and agricultural project in Peru.


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By: Stefan Baumgarten
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