BRAZIL: Raízen says future of ethanol depends on RenovaBio

Published: 11/08/2017, 4:27:32 PM

The Brazilian sugarcane sector needs predictability to continue to invest in ethanol production, said Luis Henrique Guimarães, president of Raízen, according to Brazil's Valor Econômico newspaper.

"The future of hydrous ethanol and the future of the Brazilian agro-industry depend on RenovaBio," he said.

RenovaBio, a plan under development by the federal government to incentivize the consumption of biofuels, should help attract investment to the sector.

"The sugar and alcohol industry has a cycle. You cannot make an investment overnight," he said.

Guimarães believes there is no better place than Brazil for the ethanol industry to grow, considering the low production costs. "RenovaBio can help in the competitiveness of the sector, generating healthy competition."

Márcio Felix, secretary of Oil, Natural Gas and Biofuels at Brazil's Ministry of Mines and Energy, said the framework for RenovaBio should be defined and finalized by mid-2018, before the next presidential election in Brazil.

Felix expects new information on the launching of RenovaBio to be announced this week.