Brazil Set to Profit from Surge in Ethanol Demand

Brazil Ethanol

Ethanol is in high demand in Brazil and across the world. As the largest sugar producer ethanol, Brazil is set to profit as the price of biofuel at the pump is now more competitive than gasoline on the open market, according to Sao Paulo-based trader and producer Copersucar SA (note: in the US, oil and gasoline are heavily subsidized). “Ethanol prices are 62-63% that of gasoline, a level that will start attracting demand,” said Luis Roberto Pogetti, chairman of Copersucar in an interview given in London earlier this month.

Copersucar isn’t the only Brazilian company predicting huge benefits to Brazilian businesses and consumer. “… Flex fuel cars can run on either a mix of ethanol and gasoline or pure biofuel. Filling up with ethanol usually becomes more advantageous than with gasoline at the parity of 65 percent,” researcher Datagro Ltd. estimates.

The news out of Brazil seems to indicate that the growing gap in consumer prices between ethanol and (decidedly over-priced) gasoline is a global, rather than national trend, as the world evolves beyond harmful fossil fuels and toward a cleaner, sustainable future. All of which is good news for pretty much anyone who isn’t a cartoonishly evil CEO of a major oil company, a jacka** Saudi prince, or an Albertan oil looter who’s more than happy to destroy his grandkids’ planet in order to line his pockets and lease his missus (mister?) a shiny new Lexus every 24 months. You know: bad people.

Here’s hoping the baddies at Big Oil and Coal get it in the end … or, preferably, go to prison – where they’ll still “get it in the end”.

 

Sources: Copersucar SA, via Bloomberg.

 

Jo Borrás

I've been in the auto industry 1997, and write for a number of blogs in the IM network. You can also find me on Twitter, at my Volvo fansite, or chasing my kids around Oak Park, IL.