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To: Investors with
Interest in Ethanol
With
rising corn prices and marginal profitability of corn ethanol,
cellulose is now considered the future for ethanol production in the
United States; although profitable results using cellulose are
possibly ten years away. In spite of its promise, cellulose like
corn will still be far behind sugarcane as the premier food stock
for ethanol. Lester Brown of the Earth Policy Institute explains
that sugarcane ethanol has an energy ratio of 1 to 8. This means
that for each unit of energy required to transform sugarcane into
ethanol, 8 times as much energy is created. For corn this ratio is 1
to 1.3 and for cellulose it is 1 to 4. "For net energy yield,
ethanol from sugarcane in Brazil is in a class all by itself," Brown
concludes.
Brazil is the largest sugarcane producing country in the world. This
year’s production exceeds 17 billion liters, of which a record of
3.4 billion was exported. By 2012, Brazil is expects to export 7
billion liters of ethanol. Brazilian ethanol goes to Japan, China,
India, and despite all the investments in corn ethanol, the U.S. is
still Brazil’s largest export buyer. Even with tariffs of over 50
cent per gallon, the exports to the United States are still
significant.
The
present cultivated area dedicated to sugarcane ethanol production in
Brazil is less than 1% of its total arable land: there are 44.5
million acres of fertile land still available for sugarcane
expansion. Could this be why there has been a rush of international
investors to Brazil to investigate this opportunity?
While the opportunities are extensive the landscape for ethanol in
Brazil has it own unique complexities that need to be understood and
addressed with experience and knowledge of the market and the
production dynamics of sugarcane ethanol. Familiarity is the first
step.
Brazil Agrilogic (BAL) is a uniquely positioned American based
agricultural business development company servicing- through its
offices in Brazil- international clients interested in Brazilian
agriculture. BAL, working with leading Brazilian industry resources,
has recently completed an extensive study of the sugarcane ethanol
market and the various aspects of sugarcane ethanol production,
including the sugarcane itself as well as the end product-ethanol.
Attached is an overview of what is contained in this study.
For an overview
of what is contained in this study.
click here
For more information on obtaining this study or to discuss how BAL
can assist you in approaching this unique investment opportunity,
please fill out the
Consultation Form.
Sincerely,
Ken Fliés
Managing Partner
Brazil Agrilogic, Inc.
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