Growth Perspectives for Ethanol Production Affect How Mills Direct Their Raw Materials and Suggest 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 productive potential in Brazil. See also that there is a forecast of a 50% growth in global renewable energy capacity in the next 5 years
After the expansion works at these mills are completed, the units should add 6.33 million liters to the daily national capacity – 5.83 million of anhydrous ethanol and 493 thousand of hydrated ethanol.
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The expectations for growth in ethanol production over the past two years have influenced how mills direct their raw materials. For example, in the 2017/2018 period, 53.5% of the sugarcane was directed toward ethanol production. In the following harvest, the percentage increased to 64.8%. And in the cumulative total until the first half of November 2019, this figure already reached 65.2%.
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According to data from the National Bank for Economic and Social Development (BNDES), out of a total of R$ 2.76 billion financed by the institution for the sugar-energy sector in 2018, 70% was allocated to industrial expansion or modernization in a broad sense, while another 3% was used directly in the manufacturing of ethanol.
Among the companies significantly investing in the biofuels market are Raízen Energia, São Martinho, Biosev, Balbo, Abengoa, Cocal, Coruripe, and GranBio.
See also:
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