Brazilian investment in ethanol production to reach 36 billion reais by 2012

18 July 2007

Sao Paulo, Brazil, 18 July – Investment in production of ethanol in Brazil will reach 36 billion reais by 2012 with the building of new plants and enlargement of others, Brazilian media have reported.

The predicted total investment by 2012 is three times more than that made between 2002 and 2005 in the sector, according to the Union of Sugar Cane Industries (Unica), the body representing the industry.

Public and private investments, including from overseas, will raise ethanol production by 113.5 percent to 38 billion liters.

Currently, Brazil has 336 ethanol and sugar plants and the building of new factories will demand an increase of 63.5 percent in the area of sugar cane plantations to 10.3 million hectares.

Boosted ethanol production will meet demand in the Brazilian market, where 12 percent of cars use this fuel and 84 percent of new vehicles are ethanol powered.

After the 1975 increase in world oil prices resulting from political instability in the Middle East, Brazil created the Proalcool program to develop alcohol as a fuel.

A quarter of Brazil’s 20 million vehicles now use ethanol, responsible for 45 percent of all fuel consumption and available at all 35,000 service stations scattered across the country. (macauhub)