Brazil produces record 384 million gallons of ethanol in October as development accelerates

In Brazil, ethanol production reached a record 384 million gallons in October, but unlike the US where increased production is resulting in a glut, Brazil is facing an ethanol shortage as soon as next April. In comparison, US production reached a record level of 565 million gallons in August.

Despite the US ethanol  glut, Brazil is continuing to become more active in ethanol-related development. This week, state oil company Petrobras announced that they would construct a pilot cellulosic ethanol plant by 2010. Earlier in the month , Petrobras announced that it would establish Suape, a deepwater port in the northeastern state of Pernambuco near Recife, as its base for ethanol exports to Europe.

The company has so far signed agreements for export of 2 million gallons of ethanol to Europe. The company also is considering the construction of two ethanol pipelines, and announced plans to develop 20 sugar ethanol plants via multiple partnerships in Goias and Mato Grosso states and a partnership with Japanese trading company Mitsui. Each plant is projected to produce 50 Mgy of sugar ethanol and the first will be ready for operation in 2010.

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