• 4 minutes Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 7 minutes Who Really Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 11 minutes Trump Will Win In 2020
  • 15 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 7 hours Ethanol is the SAVIOR of the Oil Industry, Convenience Store Industry, Automotive Supply Chain Industry and Much More!
  • 1 hour Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 6 hours Instagram Now Banning Photos Of People At Gun Ranges, Claiming They Promote "Violence"
  • 2 hours Let's shut down dissent like The Conversation in Australia
  • 2 hours Pepe Escobar: “How The Houthis Overturned The Chessboard”
  • 12 hours Famous Manufacturer of Anti-Ethanol Additives Proves Ethanol's Safety and Benefits
  • 18 hours Collateral Damage: Saudi Disruption Leaves Canada's Biggest Refinery Vulnerable
  • 1 day Hong Kong protesters appeal to Trump for support.
  • 1 day Saudi State-of-Art Defense System looking the wrong way. MBS must fire Defense Minister. Oh, MBS is Defense Minister. Forget about it.
  • 14 hours Trump Accidentally Discusses Technology Used In The Border Wall
  • 9 hours US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
  • 15 hours One of the fire satellite pictures showed what look like the fire hit outside the main oil complex. Like it hit storage or pipeline facility. Not big deal.
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

Premium Content

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




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play