Jason Barton

Professional Information and Energy News

Imports of Brazilian Ethanol Nearer as US May End Subsidies

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Just as the US Congress debates whether or not to end subsidies to corn ethanol, Royal Dutch Shell invests heavily in preparations to export Brazilian ethanol to the US.

July 10, 2011 4:37 pm

Shell to focus on exporting ethanol to US

Royal Dutch Shell is gearing up to become the biggest exporter of ethanol to the US, investing heavily in its joint venture in Brazil as global oil companies battle for control of the Latin American country’s sugarcane fields.

Under pressure to reduce the US deficit, lawmakers in Washington are preparing to scrap ethanol subsidies and tariffs – a move that would open up the country to cheaper imports while putting the spotlight on Brazil as the world’s only other leading producer of the biofuel.

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“The tariffs will be lifted; it’s just a question of when. That’s why we need to increase production of ethanol quickly,” Vasco Dias, Raízen’s chief executive said in an interview with the Financial Times.

“Our main priority now is to supply the internal market but our ambition is to become a big exporter of ethanol to the US when the time comes, and also to Europe.”

Read the entire article here.

Written by Jason

July 13th, 2011 at 10:39 pm