ETHANOL BOOMING?
Raizen ( RAIZ4.SA) is Brazil's largest producer of ethanol from sugar cane and a joint venture between Shell (SHEL.L) and Cosan SA ( CSAN3.SA).
Europe is loading up on cheaper Brazilian ethanol, tripling imports in order to cope with the energy crisis triggered by the war in Ukraine.
Prices for natural gas and power are so high in Europe that some ethanol makers have considered shutting down plants.
As in other countries, it’s a requirement that ethanol be blended with gasoline in Europe.
Luckily, Brazil is stepping in with a more affordable alternative, which could bring down the cost of driving.
https://www.bloomberg.com/news/articles/2022-10-19/europe-is-buying-up-cheaper-brazilian-ethanol-amid-energy-crisis#xj4y7vzkg
Brazil to export record volume of ethanol to Europe this year -S&P Global
Reuters
This year through August, Brazil shipped about 427 million liters of ethanol to Europe, 435% above the figures from the same period in 2021.
By the end of 2022, the South American country is expected to export 600 million liters of the biofuel to Europe, said S&P.
Sept 19 (Reuters) - Brazil's ethanol exports to Europe are set to reach a record high this year, as foreign markets look more appealing than domestic, according to an analysis by S&P Global Commodity Insights.
This year through August, Brazil shipped about 427 million liters of ethanol to Europe, 435% above the figures from the same period in 2021. By the end of 2022, the South American country is expected to export 600 million liters of the biofuel to Europe, said S&P.
Brazil's previous record was set in 2010, when it exported 477 million liters to the continent.
The surge in exports comes as the biofuel sector responds to lower prices in Brazil and increased demand in Europe, making shipping abroad more appealing to producers.
As gasoline prices rise, demand for the cheaper E10 fuel (gasoline with 10% ethanol) is growing this year in major consuming countries such as Germany, the UK and Sweden, according to S&P.
Raizen (RAIZ4.SA) is Brazil's largest producer of ethanol from sugar cane and a joint venture between Shell (SHEL.L) and Cosan SA (CSAN3.SA). |
