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Gevo Seeks Partners To Enter Brazil Ethanol Sector
By Mr Ethanol | August 1, 2008
Reuters:
Gevo Inc, a U.S. developer of second-generation biofuels, wants to sell in Brazil a new technology that can turn cane-based ethanol into a more expensive biofuel — potentially boosting mills’ profits, an executive said late Thursday.
With minor equipment changes, the technology allows ethanol mills to produce isobutanol, a biofuel that has an energy content equivalent to conventional gasoline and therefore a higher value than ethanol.
Funded by Khosla Ventures and Virgin Fuels, the company plans to ship Brazilian isobutanol to the United States, where the product can replace a gasoline additive whose usage is mandatory.
“The business model is to retrofit ethanol plants down here at a very low cost and instead of producing ethanol they would produce isobutanol, which can be sold for a premium over gasoline,” said Gevo vice president Brett Lund.
The company estimates the necessary investment at mills at 0.10 real (US6.5 cents) per liter.
An extra benefit for mills is that exports of isobutanol to the United States are tariff free. This would be a loophole for Brazilian producers, who face a 54-cent-per-gallon import tariff in direct sales to the U.S. market.
Topics: BizOp, Brazil, Ethanol, News |
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