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Analyzing The Brazilian Biofuel Industry

As international oil prices soar, Brazil has been put at the forefront of a "biofuels" movement in which many countries view sugar cane, corn, soybeans, beets, cornstalks and native grasses as cleaner, money-saving substitutes for oil produced in politically unstable countries. Ethanol is higher in power-producing octane than most gasoline and can reduce tailpipe emissions of carbon monoxide and harmful particulates.
by Staff Writers
Dublin, Ireland (SPX) Feb 18, 2008
Research and Markets has announced the addition of "Analyzing the Brazilian Biofuel Industry" to their offering. Although biofuels are mainly used to replace or supplement the traditional petroleum-based transportation fuels, they can also be deployed to generate heat and electricity.

Being an alternative to fossils, biofuels can be applied to existing vehicles with little or no engine modification. Although they release CO2 when burned in internal combustion engines, they differ from fossil fuels partly because their use reduces the net emission of carbon dioxide and other gases associated with global climate change and partly because they are biodegradable.

Biofuels have had a long history of use in the transport sector. This began in the 1970s and early 1980s when a substantial increase in biofuels production and use in many countries resulted from high oil prices. But biofuels became less competitive vis-a-vis fossil fuels after the collapse of oil prices in the mid-1980s, and global interest in biofuels for transport waned considerably in the 1990s and the first years of the 21st century.

The recent sustained increase in international oil prices has once again highlighted the potential for biofuels to contribute to transport fuel demand, particularly in countries that import the bulk of fossil fuel supplies. Global concerns about the effects of fossil fuel use on the environment, as well as recognition of the benefits of energy supply diversification also support increasing biofuels production and use.

As international oil prices soar, Brazil has been put at the forefront of a "biofuels" movement in which many countries view sugar cane, corn, soybeans, beets, cornstalks and native grasses as cleaner, money-saving substitutes for oil produced in politically unstable countries. Ethanol is higher in power-producing octane than most gasoline and can reduce tailpipe emissions of carbon monoxide and harmful particulates.

About a third of the fuel Brazilians use in their vehicles is ethanol, known in Brazil as "alcohol." That compares with three percent in the United States. All gasoline sold in Brazil contains at least 26% ethanol, but motorists driving flexible-fuel cars have the option of filling up with pure ethanol, or E100, which currently is selling for about half the price of the blend.

The trend in Brazil has far-reaching implications for environmental policy, trade and economic development in poor countries that may have a bright future producing crops that can be easily turned into fuels.

There is a lot happening in the field of biofuels in Brazil, and to capture these, we bring you the complete guide to the Brazilian Biofuels Industry - Analyzing the Brazilian Biofuels Industry.

The report begins with an analysis of the basic know-hows one needs to be familiar with before starting on the fascinating journey of discovering the biofuels industry in Brazil. The economics of biofuels, issues facing the industry, regulatory barriers as well as incentives, technologies involved, major types of biofuels, and many other topics are discussed in depth at the starting of the report.

Divided into nine sections, the report then moves on to Section two, which is dedicated to a thorough analysis of the Brazilian Biofuels Industry. Information and research included in this section ranges from the optimism presiding over biofuels in Brazil, an overview of the industry, issues the industry is dealing with, questions about price sustainability, risks involved in biofuel investment, and much more.

The huge support the biofuel industry receives from the Brazilian government in form of incentives, tax exemptions, etc., and factors contributing to the success of the biofuel industry in the country are also focused upon in section 2. The debate going on at the moment over whether or not the biofuel industry is actually contributing to ecological catastrophes also finds its way in to the section.

Moving ahead, Section 3 is completely dedicated to analyzing the Brazilian ethanol/bioethanol industry, while Section 4 analyzes the Brazilian Biodiesel Industry. These two sections cover information pertaining to the history of the markets, the various regulations governing these markets, production statistics, industry potential, infrastructure requirements and present infrastructure, end use technologies, market structure, the various requirements for production of ethanol and biodiesel, area availability, analysis of the by-products markets, and so much more. Role of government institution and the private sector in both the ethanol and biodiesel markets are looked upon briefly as well.

Of particular interest, is the analysis of the various types of vegetable oils used in the production of biodiesels and their potential and yield.

Section 5 looks at the potential of the Brazilian biofuel industry to meet the sustainability goals of the country. This section looks at security of food and energy, the environmental impact of biofuels, the impact of the industry of the country's foreign exchange balance, etc.

Case studies from the Brazilian biofuel industry makes up Section 6, while the 2007 US-Brazil cooperation agreement on biofuels is analyzed in Section 7. Of interest in this section is the analysis of the impact of the Memorandum of Understanding between Brazil and the United States on the entire Latin American region.

Analysis of the major industry players such as Copersucar, COSAN, Petrobras, and others conclude this research report.

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