Study: Brazilian Cane-Based Ethanol Can Replace 10% World Gasoline In 20 Yrs
According to a study conducted by University of Campinas, Brazil could replace 10% of the world’s gasoline with its bio-friendly cane-based ethanol in 20 years if the right investments are made.
The study has been conducted over the past two years with participation by Transpetro, the distribution branch of Brazil’s state-owned oil firm, Petroleo Brasileiro SA. About 20% of the BRL20 billion per year will be needed to invest in ethanol infrastructure, such as warehouses, ethanol-dedicated pipes and improvements in ports, and the rest will be needed to construct new mills and purchase industrial and agricultural equipment.
With the necessary investments, Brazil could boost its ethanol exports to 200 billion liters by 2025 from roughly 3.4 billion liters in 2006, the study said. The country’s planted area for sugarcane is currently at 5.4 million hectares for sugar and ethanol output and will need to expand to a hefty 30 million hectares. Brazil currently has some 200 million hectares of degraded pastures, where agricultural crops can be planted without knocking down a single Amazon tree.
The majority of the investments would have to come from private companies and investors, with the rest coming from Brazil’s state-owned development bank, BNDES.