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Raizen plans second-generation ethanol production from 2014

February 12, 2013

Brazil’s Raizen, the joint venture of sugar producer Cosan and Royal-Dutch Shell, will begin commercial production of second-generation ethanol beginning in 2014, Reuters reports.

Brazil’s Raizen, the joint venture of sugar producer Cosan and Royal-Dutch Shell, will begin commercial production of second-generation ethanol beginning in 2014, Reuters reports.
The company is the world’s biggest sugar and ethanol producer and expects to have eight mills producing second-generation ethanol by 2024.
Raizen said it would start producing second-generation ethanol from its pilot Costa Pinto mill in Piracicaba, São Paulo.

The mill will be able to produce 40M litres/year of ethanol and will cost BRL180M (US$88M) to build.
According to Dias News, the company will focus on reducing costs and improving utilisation of existing capacity to grow in the coming years.
Investments in Brazil’s ethanol production capacity have dried up since the 2008 financial crisis.

The Reuters report said many mills were digging themselves out from under heavy debt and others were spending aggressively to replant cane to better serve their current crushing capacity.
Drought and lack of investments in new and improved cane varieties has led to the first decline in Brazilian cane output in a decade in 2011. The government’s reluctance to raise gasoline prices for consumers has not helped the sector either.

The report said that, although Brazilian mills still made money producing sugar, production of most ethanol was a money-losing operation. Second-generation ethanol production has so far remained out of reach for Brazil’s cane sector on a commercial scale, although the technologies in laboratories and small-scale production facilities have been successful.


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