Clipping of news on Brazilian Culture, Law and Citizenship
27/02/2012
This article was translated by an automatic translation system, and was therefore not reviewed by people.
Brasilia - The federal government announced the Sugar and Alcohol Sector Strategic Plan, which has the ambition to expand the supply of cane sugar for ethanol production over the next four years. The first measure, estimated to cost R$ 29 billion, is the renovation of 6,4 million hectares of sugarcane by 2015. According to the Ministry of Agriculture, the average age of cane is higher than the ideal, above the sixth cut.
The growing demand for ethanol, however, also requires the expansion of planted area. To meet the idle current average of 16% of the plants, will invest R$ 8,5 billion in the planting of 1,4 million hectares. More R$ 23 billion will be invested in 3,8 million hectares to meet the demand for anhydrous ethanol blended with gasoline at a ratio of 25% ethanol and hydrated for between 50% and 55% of the light vehicle fleet in the coming years.
The resources for the implementation of the plan will come mainly from Banco Nacional de Desenvolvimento Economico e Social (BNDES) and rural savings. The government also proposed to the National Monetary Council (CMN) a financing facility for storage of ethanol so that the industries distribute production over the years, avoiding the volatility of fuel prices. The facility is estimated at $ 4.5 billion a year.
The Brazilian Agricultural Research Corporation (Embrapa) will receive R$ 40 million for research into new varieties of sugarcane, as a drought resistant. Another line of research is to develop technologies for cellulosic ethanol production to utilization of sugarcane biomass.
As a way to restructure the sector, the strategic plan also proposes the organization of producer associations and cooperatives, optimizing their participation in the production chain and may even take plants stops.
Source: InfoMoney
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This article was translated by an automatic translation system, and was therefore not reviewed by people.