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June 2011 | |  |
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A golden age for Brazil ethanol? Not quite
Source : omanobserver.om
By most measures, this should be a golden age for sugarcane ethanol in Brazil. Yet, despite high prices for the biofuel and a massive expansion in the domestic fleet of cars that use it, Brazil's ethanol industry is struggling with stagnant investment, insufficient supply growth and a government that can't seem to figure out whether to treat it as a friend or a foe. Efforts to resolve the impasse were at the front at a major Brazil ethanol summit yesterday. The event brought together government officials including Energy Minister Edison Lobao, global energy executives, and members of the Unica ethanol industry group, which hosted the event. Meanwhile, producers have pointed their finger right back at the government, arguing that supply growth remains stagnant because of uneven taxes, the government's vague talk of future regulation, and a lack of incentives to invest. "As long as there is no clarity about the policy for fuels, there is a risk for investments", said the president of Sao Paulo-based Datagro consultants, Plinio Nastari.
read more ...
8 June 2011 |
Economy ::
Bioethanol ::
South & Latin America
The information in this section is subject to a disclaimer.
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