Japan-Brazil Ethanol Investment Could Reach $8 billion
The Japan-Brazil connection is strong. There are more Japanese in Brazil than in any other country in the world, other than Japan.
Brazil's state run firm Petroleo Brasilero SA is in negotiations with Japan's Mitsui & Co. Ltd.
Japan's demand for ethanol is between 1.8 billion and 6 billion liters each year and Brazil exported 3.4 billion liters last year. Japan is willing to invest up to $8 billion hoping Brazil can/will do more.
Japan's National Development Bank will finance distilleries aimed exclusively for the Japanese market.
The United States is the world's largest ethanol producer…but Brazil is number 2 and Brazil has more agricultural land than the U.S.
Brazil also produces ethanol from sugarcane, whereas the U.S. produces it from corn, which is more expensive.
Ethanol is becoming populare worldwide because it is cheaper and Brazil is reaping the rewards of the demand.
Brazil is about to reap much more if the deal with Japan goes through.
So, why don't more countries use ethanol?
This is just one of the many steps to come to turn Brazil into the next OPEC.
I comment regularly on the business/investor side of alternative energy on Energy Spin: Alternative Energy Blog for Investors-Served Daily.
Cheers,
Francesco DeParis
Japan should support all the Asian countries who are having the potential to produce the Bio Ethanol from various crops eg Cassava and sugar cane.
The shorter transportation distances will reduce the landed cost(CIF Japan port) due to the less transportation lose + Cheaper freight charges +shorter transit time etc
Not only Japan would get the lower cost biofuel but als9 would develop the regional countries in Asia like Indonesia ,Thailand etc.
It could be slightly more expensive for the start up period (transition)but sooner later the prices from Asian must be competitive than from Brazil.
Additional to the cost we do need t consider the global warming issue to have less transportation fuel to bring the biofuel from further away distances from Santos to Japan.
Did the Brazilian people know how many liters of waste water generated to produce 1 liter of BioEthanol. ?
Every 1 liter of Bio Ethanol will produce 11 liters of waste water which need to be treated before discharging into the environment.
In teh country like Brazil it is easier just to discharge such polluted water into the environment without treatment.
This is why Brazil is the cheapest Bio Ethanol producer since the environmental cost were not accounted.
Brazilian must not be proud to be the biggest leading exporter of Bio Ethanol without cost in the environmental protection cost.
The more export of Bio Ethanol. The worse environment especially the water pollution will be in Brazil.
It will cost a big fortune to solve the problem afterward.
Get the real cost of Bio ethanol including what Brazil must do for the treatment of waste water 11 liter of polluted water to export 1 liter of Bioethanol.
Can Brazillian government give the realistic cost of Bio Eethanol ?
The super low prices of Bio Ethanol produced by Brazil is bringing Brazil to be the world leading / biggest biofuel exporter ?
Such low price of Bio Ethanol exporting out from Brazil is the real cost with the environmental damage from teh Bio Ethanol production.
To have the proper pollution treatment for such the huge polluted water from the Bio Ethanol production must be taken into account to make sure that the export low price is properly calculated in.
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