As in other countries, it is a requirement that ethanol be mixed with gasoline in Europe. As published by Bloomberg, Brazil is entering with a more affordable alternative, which can reduce the cost of driving.

Brazilian ethanol shipments to Europe until September were three times higher than in the previous year. Growth in purchases, according to Bloomberg, increased since July, after a policy change caused biofuel prices to fall in Brazil

Demand is so great that companies are increasing production of alternative types of ethanol to keep up with. While most of the Brazilian production comes from sugarcane broth, it can also be done with straw as well, as is the case of 2G Ethanol, which has lower carbon emissions and does not compete with food production.

Raizen, the world's largest sugar-energy group with 35 units, is building three new plants to increase its production of ethanol produced from these wastes by eight times by 2024. Today, about 80% of these volumes have been sold. "There is more demand than we can meet now," said Paulo Neves, Vice President of Trading at Raizen.

Exports are likely to continue next year. According to Luiz Gustavo Figueiredo, commercial director of the producer Usina Alta Mogiana to Bloomberg, Brazil's production capacity has been increasing amid investments in biofuel also made from corn.

Source: RPA news