Brazil: stick your ethanol
Brazilian ethanol producers are concerned about a potential new market opportunity being lost as the German government has taken a decision to put on hold its mandatory ethanol-gasoline mix program, according to the Valor Economic business daily.
The German government has decided to postpone its plans to introduce a mandatory 10% ethanol mix in gasoline, starting in 2009. The government is reportedly concerned about existing automobiles that are not adaptable to ethanol and will have to instead fill up on more expensive premium gasoline, reported the Valor Economic.
In a related development, the UK government has decided to do away with the credit line for its E85 gasoline program, possibly keeping another potential market away from Brazilian exporters.
Brazilian ethanol producers reportedly exported a majority of their fuels to Europe in 2007. Increased exports have saved Brazilian sugarcane producers from going bankrupt as sugarcane prices fell below the cost of production on commodity exchanges, according to the Valor Economic.
Brazilian ethanol exporters are pro-actively lobbying with common interest groups in the US, to help create a global market for ethanol. But with the German and UK governments' decision to go slow on the implementation of mandatory ethanol-gasoline mixing, the possibility of a global ethanol market seems far-fetched, reported the news source.
Nogger - what future is there for an industry that can only survive IF "environmentally concious" governments continue to provide massive subsidies for it to exist?
The German government has decided to postpone its plans to introduce a mandatory 10% ethanol mix in gasoline, starting in 2009. The government is reportedly concerned about existing automobiles that are not adaptable to ethanol and will have to instead fill up on more expensive premium gasoline, reported the Valor Economic.
In a related development, the UK government has decided to do away with the credit line for its E85 gasoline program, possibly keeping another potential market away from Brazilian exporters.
Brazilian ethanol producers reportedly exported a majority of their fuels to Europe in 2007. Increased exports have saved Brazilian sugarcane producers from going bankrupt as sugarcane prices fell below the cost of production on commodity exchanges, according to the Valor Economic.
Brazilian ethanol exporters are pro-actively lobbying with common interest groups in the US, to help create a global market for ethanol. But with the German and UK governments' decision to go slow on the implementation of mandatory ethanol-gasoline mixing, the possibility of a global ethanol market seems far-fetched, reported the news source.
Nogger - what future is there for an industry that can only survive IF "environmentally concious" governments continue to provide massive subsidies for it to exist?