• 2 hours Conflicting News Spurs Doubt On Aramco IPO
  • 3 hours Exxon Starts Production At New Refinery In Texas
  • 4 hours Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 22 hours Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 22 hours Oil Gains Spur Growth In Canada’s Oil Cities
  • 23 hours China To Take 5% Of Rosneft’s Output In New Deal
  • 24 hours UAE Oil Giant Seeks Partnership For Possible IPO
  • 1 day Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 1 day VW Fails To Secure Critical Commodity For EVs
  • 1 day Enbridge Pipeline Expansion Finally Approved
  • 1 day Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 1 day OPEC Oil Deal Compliance Falls To 86%
  • 2 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 2 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 2 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 2 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 2 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 2 days Aramco Says No Plans To Shelve IPO
  • 5 days Trump Passes Iran Nuclear Deal Back to Congress
  • 5 days Texas Shutters More Coal-Fired Plants
  • 5 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 5 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 5 days Chevron Quits Australian Deepwater Oil Exploration
  • 5 days Europe Braces For End Of Iran Nuclear Deal
  • 6 days Renewable Energy Startup Powering Native American Protest Camp
  • 6 days Husky Energy Set To Restart Pipeline
  • 6 days Russia, Morocco Sign String Of Energy And Military Deals
  • 6 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 6 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 6 days India Needs Help To Boost Oil Production
  • 6 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 6 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 6 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 6 days District Judge Rules Dakota Access Can Continue Operating
  • 7 days Surprise Oil Inventory Build Shocks Markets
  • 7 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 7 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 7 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 7 days Oil M&A Deals Set To Rise
  • 7 days South Sudan Tightens Oil Industry Security
Alt Text

“Grassoline” The Jet Fuel Of The Future?

Researchers have developed a process…

Alt Text

New Tech Could Turn Seaweed Into Biofuel

Scientists discovered an unlikely abundant…

Alt Text

Is Cactus Gas The Future Of Biofuel?

A Mexican green energy startup,…

Environmental Finance

Environmental Finance

Environmental Finance is still the only independent global magazine offering comprehensive coverage of the financial impact of environmental issues on the business community.  Leading industry…

More Info

Brazil Look to Benefit from US Renewable Fuel Standard Mandates

US rules on ethanol usage will favour Brazilian cane sugar producers and could lead to a surge in imports in the coming years, according to a research note from Rabobank International.

However, if Brazilian imports do surge, US legislators will likely act to change the rules, the analysts warned.

The 2010 update of the US Renewable Fuels Standard (RFS2) mandates that a steadily rising quantity of renewable fuels be used in transportation, with particular emphasis on expanding ‘advanced’ biofuels, such as cellulosic ethanol and other biofuels that do not compete with food production and produce less greenhouse gas over the lifecycle than ‘conventional’ corn-based ethanol.

This year, RFS2 mandates 15.2 billion gallons of renewable fuels be used, of which 2 billion gallons should be advanced biofuels – implying 13.2 billion gallons of conventional ethanol. By 2015, the total figure rises to 20.5 billion gallons, with 5.5 billion in advanced biofuels.

However, Rabobank’s February report, The Future of Ethanol, predicts that cellulosic ethanol will not be viable on a commercial scale “any time soon” so, assuming steady growth in biodiesel production, the opportunity for other advanced biofuels grows from 500 million gallons in 2011 to 4 billion gallons in 2015.

“This could present a huge opportunity for Brazilian producers, whose ethanol qualifies for advanced biofuels status,” the report says. “However, political realities are such that if the US ethanol programme ends up merely and primarily benefitting the growth of sugar-based ethanol in Brazil, it will be of questionable political sustainability.”

Traditionally, Brazil has exported ethanol to the US. But last year the South American nation started importing US ethanol, as a declining cane crop impacted domestic ethanol production. Brazil could continue to import in 2012 if the cane crop disappoints again, the Rabobank analysts said.

The US abolished an ethanol blending credit and taxes on ethanol imports at the end of 2011. However, Rabobank believes ethanol production will increase slightly this year, driven by the rising mandate. The analysts noted that most ethanol production is still profitable without the blending credit, and the US biofuels lobby is turning its attention to increasing the percentage of ethanol in gasoline to 15% from 10% – which will increase demand for its product – and widening the definition of ‘advanced’.

By. Christopher Cundy

Source: Environmental-Finance




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News