Brazil lowers ethanol blend

By | February 09, 2010
In response to 8.3 percent reduced ethanol production in Brazil's Center South, the government reduced its ethanol blend mandate from 25 percent to 20 percent. The three-month reduction will last through April.

Ethanol production dropped due to heavy rains plus increased demand for sugar exported to India, according to Joel Velasco, UNICA's chief representative for North America. The Brazil sugar cane industry isn't concerned by the reduction and will simply produce less anhydrous ethanol, which is mixed with gasoline, and more hydrous ethanol, which has 4 percent water and is used unblended in Brazilian vehicles, Velasco said.