Brazil's bioethanol production in 2009 is expected to break all records on the back of wider distribution of rainfall and increased area under plantation.
As per the results of second national crop survey by Conab (Companhia Nacional de Abastecimento), a record ethanol production (in volume terms) is being expected by Brazil in 2009, reported Biofuels International.
Brazil is anticipating a total harvest of 629 Million Tonnes, 10% up from 2008 levels. The projection is supported by the wider rainfall distribution and increased area of plantation that reached upto 7.7 Million Hectares, thereby resulting in plentiful growth of sugarcane crop.
Moreover, the present productivity index, which is at around 81 Tonnes per Hectare is expected to be maintained, with an increased volume of the crop, accounting for approximately 45% of the total harvest. Remaining 55% of the crop produced is intended for production of ethanol, generating 9.13 Billion Liters of anhydrous fuel and 18.7 Billion Liters of hydrated alcohol that is to be sold as fuel.
The total, 27.8 Billion Gallons of ethanol will be produced, depicting an increase of 4.22% from last year. It is estimated that the total ethanol production increased to 26,700 Million Liters by 2008-09, again because of the same reason (that is increase in sugarcane production).
Moreover, the country is the second largest producer of ethanol in the world and its domestic production is projected to grow at a CAGR of around 7% between 2009 and 2018, on the back of its cost efficiency advantage, says Global Biofuel Market Analysis, a market research report by RNCOS.
Apart from this, the country is also expecting to continue its global leadership as far as second-generation ethanol is concerned. This ethanol produced from cellulose is likely to play a critical role in the increased output of ethanol. The second-generation ethanol production is likely to commence by this year-end, reveals the report.
According to a Research Analyst at RNCOS, "Brazil has continued to be the global leader (as well as primary user) in the fuel ethanol production for over 25 years. Majority of Brazilian mills have the capacity to produce both sugar and ethanol. This gives them the flexibility of opting between the production of one or the other. The flattering price on the international market has prompted industries to go for ethanol production."
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