Do ethanol prices in Brazil follow Brent price and international gasoline price parity?

Cavalcanti, Marcelo Castello Branco; Szklo, Alexandre; Machado, Giovani

doi:10.1016/j.renene.2011.11.034

Cited by 21 publications

(9 citation statements)

References 5 publications

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“…Since 2010, BRASKEM has operated a commercial plant with a production capacity of 200 kt per year of polyethylene from bio‐ethylene . Under current market conditions, ethylene from ethanol would not compete with ethylene from naphtha or natural gas, simply because ethanol prices tend to follow the price of gasoline . Petrochemical naphtha is less expensive than gasoline but the same applies to ethane from natural gas (particularly for stranded reserves) .…”

Section: Brazil's Chemical Industrymentioning

confidence: 99%

“…55 Under current market conditions, ethylene from ethanol would not compete with ethylene from naphtha or natural gas, simply because ethanol prices tend to follow the price of gasoline. [56][57][58] Petrochemical naphtha is less expensive than gasoline but the same applies to ethane from natural gas (particularly for stranded reserves). 59 This study therefore assesses whether bio-ethylene has an environmental advantage (expressed as lower CO 2 emissions than ethylene derived from fossil fuel), and whether those emissions, if valued (or priced), could generate a financial advantage for this product.…”

Section: Brazil's Chemical Industrymentioning

confidence: 99%

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Bio‐ethylene from sugarcane as a competitiveness strategy for the Brazilian chemical industry

Souza

Rochedo

Bhardwaj³

et al. 2019

Biofuels Bioprod Bioref

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The urgency with which the world economy needs to be decarbonized could lead to the emergence of regions with the capacity to produce renewable feedstock such as biomass. The competitiveness of these regions could result from their ability to produce high value‐added chemicals at the lowest cost. The biomass embodied in a chemical product could reduce carbon emissions, leading to net CO2 removal. The aim of this study was to test the hypothesis that bio‐ethylene could make the Brazilian chemical industry more competitive. This would be achieved by applying the revenues from carbon credits associated with using ethanol and sugarcane bagasse as feedstocks for bio‐ethylene production. Three production routes were compared according to their estimated cost of production in Brazil under a simplified life‐cycle analysis: sugar‐cane‐derived ethanol to ethylene (with and without CO2 capture and storage – BECCS); bio‐methanol to olefin; and conventional steam cracking of naphtha. When associated with the production of long‐lasting materials, the ethanol‐to‐ethylene with BECCS route achieved the lower CO2 break‐even price (US$75/t CO2), followed by ethanol to ethylene without BECCS (US$82/t CO2) and bio‐methanol to ethylene (US$106/t CO2). Our findings highlight the advantage for the Brazilian chemical industry of implementing a national or, even better, a global carbon‐pricing instrument. © 2019 Society of Chemical Industry and John Wiley & Sons, Ltd

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Section: Brazil's Chemical Industrymentioning

confidence: 99%

Section: Brazil's Chemical Industrymentioning

confidence: 99%

Bio‐ethylene from sugarcane as a competitiveness strategy for the Brazilian chemical industry

Souza

Rochedo

Bhardwaj³

et al. 2019

Biofuels Bioprod Bioref

Self Cite

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“…EU, US and Brazil) and sectors (food, feed and energy) (Cavalcanti et al, 2011). In markets where biofuel mandates are used (e.g.…”

Section: Indirect Costs  Internal Adaptation Costsmentioning

confidence: 99%

The price for biofuels sustainability

Pacini

Assunção²,

Dam³

et al. 2013

Energy Policy

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“…Since the 1970s the country has responded to an average of 45% of the world's exportations [1]. Moreover is a pioneer on ethanol production as a vehicular fuel [2] using a blender with gasoline (25% ethanol anhydrous and 75% gasoline) and pure (hydrous ethanol) [3]. Thus, the internal demand of the product makes the fuel sector represents 1.5% of the Brazilian GDP [4].…”

Section: Introductionmentioning

confidence: 99%