Sugar cane based ethanol is expected to fuel 75% of all light vehicles in Brazil by 2020, with petrol gasoline only accounting for 17%, according to Jose Sergio Gabrielli, chief executive of Petrobras, Brazil’s state-run oil company. Right now, ethanol accounts for half the market in Brazil.
Brazil’s climate is ideal for growing sugar, and it’s been developing its ethanol market for 30 years. Ethanol costs half the price of regular gasoline in Brazil. Flex-fuel cars that can handle ethanol make up 90% of the new car sales in Brazil, which will drive the market.
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