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Local Power and Ethanol Plants Targeted by British Company

Written by Valdemar Medeiros
Published on 29/08/2020 at 10:53
Updated on 29/08/2020 at 14:32
energia elétrica - etanol - combustíveis
Sede da companhia britânica
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The Company Will Start Operations in the Brazilian Ethanol and Electricity Markets as It Expands Its Business with Local Mills

Czarnikow received positive feedback from Brazil’s oil and fuel regulator, ANP, to launch a new company called CzEnergy to market ethanol in the country, a market that the company says is 50% larger than that of sugar.

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Ethanol accounts for about 40% of the fuel used by the light vehicle fleet, the second-largest market worldwide for the biofuel, behind only the United States. Most Brazilian cars have engines that run on 100% hydrated ethanol.

“The sugar producer, not only in Brazil but elsewhere, is also producing ethanol and electricity (from biomass). That’s why we want to provide marketing, financing, and hedging services for other products besides sugar,” said Tiago Medeiros, head of Czarnikow Brazil.

Electricity and Ethanol

The company plans to market electricity in the so-called ACL market in Brazil, a business environment with less regulation where consumers and producers can freely enter into supply contracts.

The ACL electricity market in Brazil has tripled over the past four years as the current government seeks to deregulate the sector.

In an interview, Medeiros stated that the Brazilian unit is having a good year regarding electricity and ethanol, as sugar export volumes have surged due to increased local production and poor harvests elsewhere. Brazilian exports have grown by about 60% in the current season.

He noted that sugar purchases by China have been strong, due to larger import quotas allocated by Beijing to importers. “They will likely buy about 5 million tons this year to once again be the world’s largest sugar buyers,” he said.

Valdemar Medeiros

Graduated in Journalism and Marketing, he is the author of over 20,000 articles that have reached millions of readers in Brazil and abroad. He has written for brands and media outlets such as 99, Natura, O Boticário, CPG – Click Petróleo e Gás, Agência Raccon, among others. A specialist in the Automotive Industry, Technology, Careers (employability and courses), Economy, and other topics. For contact and editorial suggestions: valdemarmedeiros4@gmail.com. We do not accept resumes!

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