Flex-fuel vehicles raise Brazil ethanol demand

11 November 2008 20:52  [Source: ICIS news]

HOUSTON (ICIS news)--Brazilian ethanol production in April-October rose by 15.4% from one year earlier to 20.2bn litres (5.3bn gal) due to continued strong demand from flexible-fuel vehicles (FFVs), industry association Unica said on Tuesday.

Brazilian FFVs can run on gasoline or stand-alone hydrous ethanol.

Unica said hydrous ethanol sales surged by 38% from April through October because the biofuel was more competitive than gasoline in over 90% of the Brazilian market.

The association's figures start in April, which is when the sugarcane harvest begins in the centre-south of Brazil.

Unica said Brazil’s hydrous ethanol output in April-October jumped by 22% from a year earlier to 13.3bn litres.

Anhydrous production, which Brazil blends in gasoline at 25%, rose by 4% to 6.9bn litres.

Production figures refer to Brazil’s centre-south region, an area that accounts for 85% of the country’s output of the biofuel.

The association said Brazilian ethanol consumption in October totalled 1.83bn litres, a 15% increase from the same month in 2007.

On the export side, Unica said ethanol shipments in April-October rose by 70% from one year earlier to 3.4bn litres.

Brazil’s centre-south remained on target to export 4.2bn litres of ethanol in the 2008-09 season, surpassing the 3.1bn litres exported in the 2007-08 harvest, the association said.

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By: William Lemos
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