The Big Insight! Brazil Takes Advantage of Ethanol Crisis and Triples Fuel Shipments to Europe

Written by Roberta Souza

Published on 21/09/2022 at 10:04

Updated on 21/09/2022 at 13:19

Foto: reprodução pixabay.com

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Brazil, in August 2022, Tripled the Ethanol Volumes Shipped to the World Compared to August 2021. There Were Nearly 290 Thousand m³, or 290 Million Liters of Fuel

Brazil is ‘exporting’ the ethanol crisis to Europe. The surplus of ethanol, which is not being consumed internally, is being directed to exports, for example, to Europe, even though ethanol production is declining and sugar production is on the rise.

Increase in Ethanol Exports

The alarm has already sounded at Cropenergies, a German company and the largest producer of biofuel in the European Union (EU), which threatens to shut down some plants, including one in the United Kingdom.

Together with rising energy costs and the blockade of Russian gas, the company accuses the larger influx of cheaper Brazilian ethanol. In August 2022, sales to the Netherlands, which is the gateway to the EU, reached 115 thousand cubic meters.

ARTICLE CONTINUES BELOW

Understand the Energy Crisis in Europe

The energy crisis in Europe has forced giants of the European industry, such as ArcelorMittal, Alcoa, and Arc International, to lay off workers and reduce production. Industrial production in the eurozone fell by 2.3% in July compared to the same period in 2021, the largest decline recorded in over two years.

The steel multinational ArcelorMittal, for example, as soon as it announced the cuts, stated that it would close some units in Germany and Spain. The steelmaker uses energy intensively in its blast furnaces, producing more than 3.65 million tons per year in both countries.

Reiner Blascheck, CEO responsible for the headquarters in Germany, stated that the high costs of gas and electricity are putting strong pressure on the company’s competitiveness.

In response to the sanctions imposed by the West, the Russians are increasingly cutting natural gas distribution to the rest of Europe.

The energy minister of the Czech Republic reported that he will propose the calling of an extraordinary meeting of the European Union Energy Council as soon as possible. Meanwhile, the Portuguese government announced new measures to soften the increase in natural gas prices.

In France, which is a country highly dependent on nuclear energy, the shutdown of numerous reactors due to maintenance needs has caused the cost per megawatt-hour to rise to ten times what it was a year ago. In Germany, which is heavily dependent on Russian gas, the ongoing supply cuts by the Russian Gazprom and the expected shutdown of the Nordstream pipeline indicate a similar situation.

To complicate the situation in Europe even further, renewable energies have suffered the consequences of one of the hottest and driest summers. Rivers are at low levels, without flow to move hydroelectric plants at full capacity. Wind has been absent during successive heat waves that have hit the continent.

Plants in Brazil Decide to Produce More Sugar Than Ethanol Due to Drastic Tax Cuts on Fuel

Profit from ethanol sales has dropped compared to that of sugar, leading the plants to shift their production efforts away from fuel.

The drastic cuts in fuel taxes by President Jair Bolsonaro (PL), mainly on gasoline, are expected to lead plants to avoid biofuel ethanol and invest heavily in sugar.

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The Big Insight! Brazil Takes Advantage of Ethanol Crisis and Triples Fuel Shipments to Europe

Brazil, in August 2022, Tripled the Ethanol Volumes Shipped to the World Compared to August 2021. There Were Nearly 290 Thousand m³, or 290 Million Liters of Fuel

Increase in Ethanol Exports

Understand the Energy Crisis in Europe

Plants in Brazil Decide to Produce More Sugar Than Ethanol Due to Drastic Tax Cuts on Fuel

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The Big Insight! Brazil Takes Advantage of Ethanol Crisis and Triples Fuel Shipments to Europe

Brazil, in August 2022, Tripled the Ethanol Volumes Shipped to the World Compared to August 2021. There Were Nearly 290 Thousand m³, or 290 Million Liters of Fuel

Increase in Ethanol Exports

Understand the Energy Crisis in Europe

Plants in Brazil Decide to Produce More Sugar Than Ethanol Due to Drastic Tax Cuts on Fuel

While an average building in London or New York takes three years to be completed, in China a 26-story tower went up in five days with about 100 workers, and the global modular construction market already moves US$ 95 billion per year.

A Chinese factory in Guangdong is assembling a humanoid robot every 30 minutes while Tesla, Figure, and Boston Dynamics still struggle to deliver 10 thousand per year.

Australia installs giant concrete structures on the seabed 800 meters from the shore to create an ocean intake for desalination that will draw in saltwater and produce 30 million liters of drinking water per day.

Secret chamber sealed 4,500 years ago found in the Pyramid of Khufu, and Hawass announces its opening to the world in 2026

A public school student single-handedly created a machine capable of treating water for up to 50 people using only solar energy. It was awarded third place at one of the most important science fairs in the world.

Germany installed vertical solar panels on a lake in Bavaria, and the result broke conventional logic: instead of producing energy at midday peak, the plant generates more early in the morning and in the evening, exactly when families turn on appliances and factories are in full swing.

While communities suffer from water scarcity and the advancing desert, women in Morocco use nets high up in the mountains to trap fog droplets, fill reservoirs, and transport drinking water through more than 10 km of piping.

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