New co-products and ethanol availability in Brazil

Since the introduction of flex-fuel light vehicles, Brazilian drivers have had the option of choosing between ethanol or gasohol at the filling station. Whenever the price of ethanol rises above 70% of gasohol per liter, drivers tend to switch to gasohol. As both ethanol and sugar require sugarcane as their feedstock, when international sugar prices are more appealing, distilleries and production facilities shift from ethanol to sugar, thereby reducing ethanol supply which results in price increases. Are there other co-products that may further affect this availability issue? Polyethylene (the petrochemical largest volume feedstock) and Farnesene (a biodiesel alternative) may be such products. Polyethylene is in production by Braskem. Farnesene is at the initial stages of a joint-venture between Amyris and San Martinho. We harness secondary sources to understand the potential impact of co-products on ethanol availability. Our preliminary studies demonstrate that if polyethylene from ethanol is successful in the international arena, it may impact ethanol as fuel alternative. Likewise, Amyris success with Farnesene may also hinder the availability of ethanol as a fuel, as large volumes may be required to produce biodiesel. Alcohol chemistry, on the other hand, doesnt seem to have the potential to impact ethanol use as fuel.