The US will need to import large volumes of ethanol from Brazil to meet advanced biofuel targets set under the US Renewable Fuels Standard (RFS), Karim Salamon, head of research and statistics at the French trading firm Sucres et Denrees, said at F.O. Licht’s World Ethanol 2009 conference in Paris. This week.
The RFS defines advanced biofuels as renewable fuel other than corn ethanol that achieves at aleast 40% reduction in lifecycle greenhouse gas (GHG) emissions requirement.
Sugarcane ethanol would qualify as an advanced biofuel based on preliminary estimates by the Environmental Protection agency (EPA). And the Brazilian ethanol group (UNICA) claims sugarcane ethanol can reduce GHG emissions by 80% compared with gasoline even if including the controversial indirect land use change (ILUC).
Under the RFS, the US must blend 600m gal (2.27bn litres) of advanced biofuels in 2009. That target will jump to 950m gal next year and 5.5bn gal by 2015.
The US may have to rely heavily on ethanol from Brazil to meet those mandates, said Karim Salamon. The analyst said the question now is whether Brazil will be able to increase its ethanol production to meet an expected jump in global demand in the coming years.
Source: The Sugarcane Blog
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