Chinese demand heats up Brazil’s ethanol industry

brazil ethanol industry china demand

With 332,000,000, there are more cars on the road in China than anywhere in the world. Today, most run on pure petrol, but as of next year, Chinese fuel companies will add 10 percent of ethanol, with potentially far-reaching implications for the consumption of fossil fuels.

The enormous potential of the Chinese consumer market has energized Brazil’s biofuel industry, the world’s second-largest behind the U.S. The sector, after suffering from fuel price shocks as a result of shifts in government policy, has now been buoyed by the potential of the Chinese market.

Furthermore, in May, China and Brazil resolved a...

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