Wednesday, 18 April 2012

Brazil Try to Boost Ethanol Production

Advertised as a clean and sustainable alternative forthe fossil fuels the Ethanol produced from sugar cane in Brazil is facing hardtimes. Due to the production cost increase and the progressive fall on yieldsof the cane, the price of the ethanol rose at the pump, causing a decrease onthe demand

Given that, Brazilian governmentrecently took a considerable step towards to boost the production by creating ahuge subsided line of credit to the sector.

We think the general opinion isthat this is a positive move forward for Brazil and Ethanol as a fuel source,but it does leave some wondering if the conversation over ethanol production asa harmful process to the environment will soon take center stage.

1 comment:

  1. Interesting, but credit subsidy to corn may skew the incentives for farmers growing food crop to turn to producing perfectly edible corn for fuel no unlike what's happening in Bolivia with quinoa