Demand for ethanol grows and more than 20 plants are expanding their production capacity

Ethanol production growth prospects affect the way plants direct their raw material and suggests business expansion

The biofuel industry is increasingly growing in Brazil. According to data from the National Agency of Petroleum, Natural Gas and Biofuels (ANP), currently 24 ethanol production units are expanding their production potential in Brazil. See also that there is a forecast of 50% growth in global renewable energy capacity over the next 5 years

After the expansion works at these plants are concluded, the units should add 6,33 million liters to the national daily capacity – 5,83 million of anhydrous ethanol and 493 thousand of hydrous ethanol.

Expectations of growth in ethanol production over the past two years have influenced the way in which mills direct their raw material. For example, in the 2017/2018 period, 53,5% of sugarcane was used for ethanol production. In the following harvest, the percentage rose to 64,8%. And in the accumulated until the first half of November 2019, this value already reaches 65,2%.

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According to data from the National Bank for Economic and Social Development (BNDES), of a total amount of BRL 2,76 billion financed by the institution for the sugar-energy sector in 2018, 70% was allocated to broad industrial expansion or modernization, while another 3% was used directly in the manufacture of ethanol.

Among the companies investing significantly in the biofuels market, root Energia, São Martinho, Biosev, Balbo, Abengoa, Cocal, Coruripe and GranBio.

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