Further investment in Brazil 'needed for ethanol production'
Date added: 30th March, 2011 at 10:36
(view all articles from March, 2011)
Categories: Natural Resources
More investment in Brazil is needed for the ethanol production industry, experts have claimed.
Reuters reported on comments by analysts FO Licht and president of the nation's sugar and ethanol association Unica Marcos Jank, who said at a three-day conference on Tuesday (March 30th) that further cash was needed if the biofuels sector is to meet demand.
Mr Jank said around 775.6 million tonnes of cane are required in 2011/2012 but only 632 million tonnes are expected to be produced, warning that this will not be enough to power Brazil's popular flex-fuel cars, which run on a mixture of gasoline and ethanol.
Most of the new vehicles sold in Latin America's largest economy take this kind of fuel, Reuters reported.
Investment in Brazil's renewable industry already tops other countries, with $1.76 billion (£1 billion) of the $5.6 billion ploughed into the sector across the world in 2010 going to the nation.
But Unica warned that the shortfall of ethanol was to continue widening, predicting 974 million tonnes will be produced in 2020/21 when 1.37 billion tonnes will be required.
Oil firm BP recently invested $680 million in Brazil to become the majority stakeholder in ethanol production company Companhia Nacional de Acucar e Alcool.
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