Brazil eyeing new markets for ethanol in Asia

Brazil’s sugarcane industry association Unica is preparing a roadshow in India, China, Thailand and Pakistan to promote the benefits of ethanol.

The move follows President Jair Bolsonaro's official trip to China and the Middle East earlier this year. Brazilian ethanol exports between January and October amounted to 1.58Mm3, with most going to the US, South Korea, the Netherlands and Japan. Brazil is the world’s second largest ethanol producer behind the US.  

“There is an expectation regarding the search for new markets to export ethanol. There is strong demand for renewable fuels outside Brazil and companies producing here tend to look to other markets,” Anderson Dutra, an associate member at consultancy KPMG, told BNamericas.   

Without giving more details, Unica said the trip is still being structured. Asia is already the largest importer of Brazilian oil, with 75% of NOC Petrobras’ crude exports heading to China.   

The most recent projections of crop agency Conab, published at the end of August, show Brazil expects to produce 31.6Bl of ethanol this year, of which 30.3Bl will come from sugarcane and the rest from corn. Anhydrous ethanol output, which is used in gasoline mixes, should amount to 10.5Bl, while that of hydrous ethanol, which is used directly as fuel, is expected to reach 19.8Bl.  New projections will be disclosed by the end of December.   

Brazil is currently focusing on developing its biofuels industry to cut carbon emissions through the RenovaBio program, which should help it reach its Paris agreement goals. The federal government aims to slash carbon emissions by 600Mt between 2018 and 2028.