December 1, 2014
Earlier in 2014 Brazil passed a law requiring raising the ethanol blend rate in gasoline from 25% to 27.5%, however, the law was placed on hold until studies were conducted to determine if the higher blend rate would damage car engines in any way. After months of waiting, feasibility studies have concluded that the higher blend rate is indeed viable, clearing the enactment of the law. This will be the first increase in ethanol blend rates for Brazil in two years and it is expected to increase demand for sugar-based ethanol by 1 billion liters per year providing some relief for the country’s struggling sugar mills. In addition to campaigning for higher ethanol blend rates in gasoline, Brazilian ethanol producers have been lobbying the government to back the production of electricity from sugar cane bagasse to help support the industry.
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