THE MARKET
Renewable energy is not a new game
for Brazil, although what has been occurring in Brazil has been
little noticed or commented on by the rest of the world.
Hydroelectric dams and ethanol facilities have been logical steps
for the fifth largest country in the world, a country with 13 % of
the world’s fresh water reserves and an abundance of sun and soils.
Having paid its dues early on Brazil is poised to expand its world
leadership in renewable fuels. Brazil while a veteran in this arena
is in fact a young country with a tremendous future. One-half of
Brazil’s 80 million people are under the age of 24. There is a
hunger for technology, knowledge and something better. The
adaptation of flex-fuel vehicles in the country is but one prime
example.
Brazil’s adeptness at sugarcane and ethanol production is part of
its long history extending back to its discovery 500 years ago. Its
national drink, cachaça, is sugarcane rum. It’s the largest producer
of sugarcane in the world and is expected to produce half of the
world’s sugar in a matter of years. All of this has been
accomplished utilizing only 2% of it vast agriculture producing
lands.
In this study, Brazil Agrilogic has analyzed Brazil and its recipe
for production in light of this new demand. Special attention is
given to alcohol, or ethanol, as the product of choice, albeit sugar
and electrical energy both hold special prospects. The study strives
to show that, aside from the potentially explosive demand for
ethanol and the solid prospects for sugar on the world market,
Brazil’s domestic demand for energy and ethanol are very strong and
will prove supportive.
Furthermore, Brazil Agrilogic endeavors to demonstrate that the
current expansion isn’t sufficient, and the prospects for investment
warrant further analysis. |
