Over people on in Paulo, Brazil, “Ethanol Summit” – billed world’s “congress.”
Among was CNBC’s Global Expert, Daniel Yergin, who, as the keynoters, charged the view. CNBC’s caught Dan, Cambridge Associates few planes-en Sao the St. Economic Russia.
Brazil way the U.S. terms production. we their experience?
Brazil is the U.S. not of volume. U.S. more, and growing fast. Brazil in experience -30 of activity- and cost. great that by low-cost producer.
Why?
Ethanol sugar easier produce. You’re sugar. to into sugar. reason evident when, a rainy, Saturday – an hour’s from Paulo, and minutes into – around and into to being state-of-the machinery. highly operations.
One key their is mills self-sufficient in energy; their out baggasse, the ground-up product sugar plant.
What ethanol for Brazil’s consumption?
Ethanol had ups-and-downs, its busts in Brazil. people lot. 80% cars on or ethanol. Brazilian is 23% ethanol. So, add up, 40% of fuel ethanol, and is increase.
But scale mind. The of Brazil to 3% of U.S. gasoline market.
Is ethanol long for Brazil, are to of savings?
Brazil to ethanol. committed. It’s of things Lula on around world. The oil company, Petrobras, is long-distance ethanol pipelines.
Dilma Rousseff, my panel, the minister Minister and Staff President Lula. her remarks, before me, that are 15% of energy consumption, Brazil — of hydropower — are 45%. renewable go ethanol and amounts from is make electricity.
What were issues conference?
There a discussion technology, markets, logistics, and regulation, — — ethanol, “second generation” ethanol.
But the question and global market would going. If does, Brazil be supplier. CERA’s own study, that, a market, 70% to 80% traded come America, Brazil.
Is a Brazil?
No. in of are see opportunity. Three ago, ethanol on investment agenda. a of the States, Europe, is Brazilian ethanol, in the that of business. investors betting global market.
George Soros quite of the he he $900 Brazilian ethanol. got when himself “speculator” down money, the he regulation and and in States Europe.
If U.S. were ethanol the has, it U.S. consumption?
Forty U.S. gasoline! would four per day! took years most distribution operation. see United get 900,000 million day U.S.-produced ethanol.
Down the road, it’s highly Brazil other be to States.
But get big take in that working on. the the all lot. there the big-ticket to the the country. took years.
What’s takeaway?
There two. First, it’s how of its changed. years ago, looked peripheral, even parochial, an of view. Today, it’s seriously, could up oil — except won’t only from oil wells, also sugar farms. will the the market.
The is years past, was important an of view. Today, it the deep — added million capacity beginning decade. is forefront ethanol. They people conference. 1200 up. And lot were Brazil!
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