Brazil ethanol output rises 15% on hydrous surge

09 October 2008 21:17  [Source: ICIS news]

HOUSTON (ICIS news)--Brazilian ethanol production in April-September rose by 15% to 17bn litres (4.5bn gal) from one year earlier amid strong demand for hydrous ethanol, sugarcane industry association Unica said on Thursday.

Hydrous ethanol is used as a stand-alone fuel in Brazil’s booming flexible-fuel vehicle (FFV) fleet.

Unica said hydrous output rose by 24.5% to 11.2bn litres, accounting for two thirds of total production.

Anhydrous ethanol output in April-September was steady at 5.6bn litres, or 33% of total output.

Brazil blends anhydrous ethanol in regular gasoline at 25%.

Brazilian ethanol consumption in April-September totalled 10.2bn litres, a 31% increase from the same months in 2007, the association said.

On the export side, shipments in April-September rose by 66% to 2.9bn litres compared with one year earlier.

Unica’s figures refer to production in the centre-south, which accounts for at least 85% of Brazil’s output of the biofuel.

The association released data starting in April because that is when the sugarcane harvest begins in the centre-south.

Brazil is the world’s top exporter of ethanol and the second-largest producer of the biofuel, after the US.

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By: William Lemos
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