Grupo de Economia da Energia

Posts Tagged ‘ethanol crisis’

Ethanol: from promise to problem

In biofuels, ethanol on 16/05/2011 at 00:30

By Luciano Losekann

Until recently, the Brazilian government highlighted the country as a world’s top ethanol exporter. Accordingly, in 2007, the Brazilian government published a study indicating the possibility of Brazil using  ethanol to meet 5% of global gasoline consumption and, with more advanced techniques, such portion could reach 10% in 2025 [1], with a production of 205 billion liters of ethanol in the country.

Four years later, perspective is completely different. The recent scenario of ethanol in Brazil is characterized by difficulties in supplying the fuel, high prices and need to import the product.

In April, prices of hydrous ethanol and anhydrous ethanol in power plants in São Paulo showed the maximum value ever of the past 10 years. On average, the price of hydrous ethanol at gas station reached 40% over the same period in 2010. As the price of anhydrous ethanol mixed with gasoline tripled during the same period, the price of gasoline was also affected, increasing 15%. Continue lendo »