Latest news with #ethanol
Bloomberg
a day ago
- Science
- Bloomberg
Lab-Grown Meat Is the Fake Climate Food Fix That Just Won't Die
Back in the early aughts, biofuels such as ethanol were looking like a powerful answer to our then-emerging understanding of the climate crisis and our reliance on foreign oil: Using renewable fuels made from plants like corn, experts said, could significantly reduce energy emissions when compared with gasoline. Even better was the future promise of 'advanced biofuels,' which would one day use inedible biomass instead of food. To environmental lawyer Timothy Searchinger, however, something about diverting land from food into energy just didn't add up. Use one field to grow corn for fuel, he pointed out, and other land will invariably have to be cleared to grow food, house livestock and grow feed for livestock. When those trees are cut down, carbon is released and climate change gets worse.
Yahoo
a day ago
- Business
- Yahoo
Analysis-Brazil corn ethanol boom covers demand as country hikes biofuel mandate
By Oliver Griffin SAO PAULO (Reuters) -Growth of Brazil's corn ethanol sector has become key to meeting the country's growing demand for the renewable fuel under a new government mandate to use more ethanol in gasoline, even as sugarcane-based ethanol output has stagnated. Brazil is the world's largest producer of ethanol from sugarcane, but output has flattened since the turn of the decade, while corn ethanol production has more than tripled, according to data from sugar and ethanol industry group UNICA. In the 2024/25 cycle, corn ethanol output in Brazil's center-south region rose nearly 31% from the year before to 8.19 billion liters, according to an UNICA report. On Wednesday, Brazil's government approved a measure hiking the mandatory blend of ethanol in gasoline to 30%, from 27% previously, which will require well over 1 billion more liters of ethanol per year. "Thanks to corn ethanol, we are increasing the blend to 30%, right? If it weren't for this increase in production, we wouldn't be able to implement this policy," said Guilherme Nolasco, president of the corn ethanol industry group UNEM. Brazil's government initially put off raising the ethanol blend in gasoline this year, which some attributed to concerns it could push up prices. By the time officials confirmed the move this week, they were touting it as a way to bring down prices at the pump. Amance Boutin, business development manager at consultancy Argus, said the decision to implement the new biofuel mandate from August is a vote of confidence in the capacity of the corn ethanol sector to keep ramping up production. At the same time, cane growers in Brazil, which is also the world's top exporter for sugar, are expected to maintain their preference for producing the foodstuff over fuel, said Gabriel Barra, director and head of Latin American equity research for oil and gas, petrochemicals and agribusiness at Citibank. "Sugar will continue to take a large part of this mix from sugarcane processing," Barra said. "Ethanol will most likely continue to lose this competition." In March, Citi forecast corn ethanol production in Brazil would hit 16 billion liters by 2032, a sentiment echoed by UNEM's Nolasco. "We have the capacity to double current production by 2032," Nolasco said. According to UNEM, corn ethanol represents 23% of current ethanol production in Brazil and it expects it to grow to account for 40% of the fuel's output over the next decade. At an industry event in Sao Paulo this month, UNICA Chief Executive Evandro Gussi said Brazil is not concerned about whether ethanol comes from sugar, corn or another source, as long as it has low carbon emissions and does not deprive the country of needed food. "In terms of biofuel and ethanol. Brazil … is not the land of 'either' - either this or that," said Gussi, adding he expected both corn- and cane-based ethanol production to grow. Some in Brazil's corn sector are already pushing to expand other crops for use in ethanol production, with sorghum a viable option for farmers who miss the planting window for the country's second corn crop. Increasing the output from sugarcane crops will be crucial to luring fresh investments and boosting the sugar-energy sector, said Cesar Barros, CEO of sugarcane research company CTC, blaming the recent doldrums on a lack of innovation. By contrast, corn has benefited from years of research and development by major multinationals, Barros said. Corn is the crop of choice for the world's biggest ethanol producer, the U.S. "In the same 20-year horizon in which corn doubled its productivity in Brazil, sugar cane practically stagnated, with average productivity increasing very little," Barros said. In April, following years of research, CTC announced the launch of a number of new products that it said will help double the output of sugarcane on Brazilian fields by 2040. "Doubling sugarcane productivity in the next 20 years will ... enable new investments, whether in new plants or in increasing capacity," Barros said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
Analysis-Brazil corn ethanol boom covers demand as country hikes biofuel mandate
By Oliver Griffin SAO PAULO (Reuters) -Growth of Brazil's corn ethanol sector has become key to meeting the country's growing demand for the renewable fuel under a new government mandate to use more ethanol in gasoline, even as sugarcane-based ethanol output has stagnated. Brazil is the world's largest producer of ethanol from sugarcane, but output has flattened since the turn of the decade, while corn ethanol production has more than tripled, according to data from sugar and ethanol industry group UNICA. In the 2024/25 cycle, corn ethanol output in Brazil's center-south region rose nearly 31% from the year before to 8.19 billion liters, according to an UNICA report. On Wednesday, Brazil's government approved a measure hiking the mandatory blend of ethanol in gasoline to 30%, from 27% previously, which will require well over 1 billion more liters of ethanol per year. "Thanks to corn ethanol, we are increasing the blend to 30%, right? If it weren't for this increase in production, we wouldn't be able to implement this policy," said Guilherme Nolasco, president of the corn ethanol industry group UNEM. Brazil's government initially put off raising the ethanol blend in gasoline this year, which some attributed to concerns it could push up prices. By the time officials confirmed the move this week, they were touting it as a way to bring down prices at the pump. Amance Boutin, business development manager at consultancy Argus, said the decision to implement the new biofuel mandate from August is a vote of confidence in the capacity of the corn ethanol sector to keep ramping up production. At the same time, cane growers in Brazil, which is also the world's top exporter for sugar, are expected to maintain their preference for producing the foodstuff over fuel, said Gabriel Barra, director and head of Latin American equity research for oil and gas, petrochemicals and agribusiness at Citibank. "Sugar will continue to take a large part of this mix from sugarcane processing," Barra said. "Ethanol will most likely continue to lose this competition." In March, Citi forecast corn ethanol production in Brazil would hit 16 billion liters by 2032, a sentiment echoed by UNEM's Nolasco. "We have the capacity to double current production by 2032," Nolasco said. According to UNEM, corn ethanol represents 23% of current ethanol production in Brazil and it expects it to grow to account for 40% of the fuel's output over the next decade. At an industry event in Sao Paulo this month, UNICA Chief Executive Evandro Gussi said Brazil is not concerned about whether ethanol comes from sugar, corn or another source, as long as it has low carbon emissions and does not deprive the country of needed food. "In terms of biofuel and ethanol. Brazil … is not the land of 'either' - either this or that," said Gussi, adding he expected both corn- and cane-based ethanol production to grow. Some in Brazil's corn sector are already pushing to expand other crops for use in ethanol production, with sorghum a viable option for farmers who miss the planting window for the country's second corn crop. Increasing the output from sugarcane crops will be crucial to luring fresh investments and boosting the sugar-energy sector, said Cesar Barros, CEO of sugarcane research company CTC, blaming the recent doldrums on a lack of innovation. By contrast, corn has benefited from years of research and development by major multinationals, Barros said. Corn is the crop of choice for the world's biggest ethanol producer, the U.S. "In the same 20-year horizon in which corn doubled its productivity in Brazil, sugar cane practically stagnated, with average productivity increasing very little," Barros said. In April, following years of research, CTC announced the launch of a number of new products that it said will help double the output of sugarcane on Brazilian fields by 2040. "Doubling sugarcane productivity in the next 20 years will ... enable new investments, whether in new plants or in increasing capacity," Barros said.
Yahoo
a day ago
- Business
- Yahoo
Corn Losses Extend to Wednesday's Close
Corn futures settled Wednesday with losses of 6 to 7 ¼ cents across most contracts to extend to new contract lows for several front months. Lack of a threatening forecast moving into July is putting pressure on the market. The front month CmdtyView national average Cash Corn price was down 6 cents at $3.87 1/2. The Wednesday EIA report showed ethanol output pulling back 28,000 barrels per day in the week that ended on June 20 to 1.081 million bpd. That was a 4-week low. Stocks of ethanol were up 284,000 barrels to 24.404 million barrels. Ethanol exports were down 53,000 bpd wk/wk to 110,000 bpd, with refiner inputs of ethanol up 3,000 bpd to 913,000 bpd. Gasoline product supplied (implied gasoline use) was the largest since December 2021 at 9.688 million bpd. Coffee Prices Extend 2-week Plunge as Frost Risks Recede in Brazil Have the Wheels Fallen Off the Corn Market? Coffee Prices Continue to Fall on Reduced Frost Risk in Brazil Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Rains are falling in the Western Corn Belt and will continue in the next couple days. The 7-day total shows 1 to 4 inches in the ECB, lighter totals in IL and IN. Export Sales data will be released on Thursday morning, with the trade looking for between 0.5 and 1.2 MMT of old crop corn sold in the week that ended on June 19. Sales for 2025/26 are estimated to total between 100,000 and 350,000 MT. USDA will release their June Acreage report on Monday. Traders are looking for an average of 95.4 million acres planted this spring, which would be slightly below the March Intentions report. The range of estimates is a wide 93.8 to 96.8 million bushels. A South Korean importer purchased a total of 266,000 MT of corn in a tender overnight. Brazil is raising their level of ethanol mandated to be mixed with gasoline from 27% to 30% after approval from the National Energy Policy Council. Jul 25 Corn closed at $4.10 1/4, down 6 cents, Nearby Cash was $3.87 1/2, down 6 cents, Sep 25 Corn closed at $4.05, down 7 1/4 cents, Dec 25 Corn closed at $4.22 1/2, down 6 1/2 cents, New Crop Cash was $3.79 1/4, down 6 1/2 cents, On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
2 days ago
- Business
- Bloomberg
Brazil Revs Up Biofuels Just as Sugar Cane Mills Shift From Ethanol
One of Brazil's biggest steps to boost biofuels is poised to leave behind much of the industry that has dominated supplies for the past several decades. As the country's regulators on Wednesday finally gave the green light to a long-awaited increase in the blend of ethanol in gasoline, it will be corn mills that stand to gain the most, not the established sugar cane processors.
