Brazil – BNDES study sees cellulosic ethanol economically viable in 2021

Agra-Net, em 14/04/15

Brazil’s national development bank BNDES has conducted a study with ethanol technology research institution CTBE on the feasibility of cane bagasse- and straw-based ethanol production in Brazil, local daily Valor Econômico reported.

The development bank in recent years has invested around BRL1 bln ($1=BRL3.05) in cellulosic ethanol-related projects in Brazil which currently have significantly higher production cost than conventional, cane-based ethanol plants. These were pegged at BRL1.50 per litre for cellulosic ethanol, 25% higher than that of conventional ethanol. However, production cost for cellulosic ethanol could be cut to BRL0.50-0.80 per litre by the start of the next decade if more efficient cane varieties (“energy cane”) were introduced. Further contributions to the decline in production cost would come from economics of scale and declining investment cost for new cellulosic ethanol facilities, the study said.

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