Sao Paulo, 26 September (Argus) — The Brazilian government in 2013 will raise the ethanol blend in gasoline to 25pc (E25), up from its current 20pc, according to the influential government-controlled Energy Research Company (Epe).
The biofuel blend increase will take place in the second half of next year, prompting Brazil's owners of flex-fuel vehicles to migrate back to hydrous ethanol from gasoline starting in 2014, Epe said in its long-term energy outlook.
Boosting ethanol production and use in Brazil should back out gasoline imports. Brazilian ethanol production is expected to rise to 68.3bn l/yr (429.6mn bl/yr) in 2021, up from a current 24.6bn l/yr, Epe said.
Unica, the country's main sugar and ethanol producers association, has requested the government define the ethanol blend for the 2013-14 crop as soon as possible to allow mills to plan for the upcoming harvest.
The blend was lowered to 20pc from 25pc about a year ago in October 2011 after drought and falling cane yields limited the feedstock for ethanol and sugar production. The blend can be raised to a maximum of 25pc under current law.
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