Analysts calls for Brazil to make higher investment in biofuel

Analyst F.O. Licht predicts that Brazil will need to invest more in biofuel production to meet future demand. Currently there are US$1.76 billion in biofuels projects in Brazil, one-quarter of the worldwide investment of US$5.6 billion in the biofuels industry. Speaking at the 7th F.O. Licht Sugar and Ethanol Conference in Sao Paulo, Christopher Berg, Licht’s Managing Director stated, “The investments in Brazil are still suffering from the fallout of the financial crisis in 2008. Signals from the world market will prompt new investments but certainly by next year. The world will need Brazilian exports of ethanol.” Brazil’s sugar and ethanol industry Association UNICA is in agreement with the analysts stating that investments in ethanol production capacity will fall short of demand for biofuel to fuel the country’s flex-fuel car fleet. Flex-fuel cars run on a mixture of ethanol and gasoline and account for almost all new cars sold in Brazil. To meet the growing need for biofuel, there will have to be a major increase in the production of sugar cane, said UNICA’s President Marcos Jank. (March 30, 2011)