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Lula: World Is Watching and It Seems We Haven’t Ethanol Even for Ourselves

Lula raises ethanol bottle Brazilian President Luiz Inácio Lula da Silva has called on sugarcane mill owners to guarantee domestic supply of ethanol and show the world that Brazil can meet foreign demand, as well.

“We have to be careful. The world is watching. And it looks like we cannot even meet our own domestic demand!” said Lula referring to the reduced amount of ethanol that Brazil was now adding to gasoline due to a series of supply problems.

Lula went on to say that there was simply no excuse for what was happening. Neither the rain, nor the price of sugar on international markets, could justify the threat of a real shortfall in the domestic ethanol supply in Brazil.

The president said the situation was complicating Brazil’s efforts to promote the addition of ethanol to gasoline abroad where some European and Asian countries were studying the viability of a mixture that would contain 3% ethanol.

Speaking directly to sugarcane mill owners, Lula said they could not have it both ways. “When we try to transform ethanol into an international energy source that can be negotiated on international markets we need a serious attitude.

“You cannot be energy sector businessmen when the price of ethanol is good, and farmers when sugar prices rise. We have to be able to guarantee supply. Otherwise we will be back to where we were 20 years ago when the sector lost consumer confidence.”

Lula added that Brazil is the world’s frontrunner in renewable fuel technology. But the entire effort could collapse if the country cannot guarantee supply, he said.

Lula also called for more investment to increase the productivity of Brazilian sugarcane, which is already, in terms of energy output to energy input, way ahead of all other bio-energy sources.

ABr

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  • Show Comments (5)

  • NanooGeek

    Diseased feedstock
    Is disease also a factor? Re:

    Cane orange rust spreads to other Brazilian states
    2:46 PM ET Reuters

  • hunh?

    From what I understand, sugar cane cultivation is already ravaging the environment, so why the rush develop further. Who cares if the world is watching. Lula hugged the Iranian tyrant and the world watched in horror. So what’s the big deal about the world seeing that there is a disparity here? Economic production trumps environmental and other concerns. I would be more impressed if they found a way to pay the poor peasants cutting sugar cane more money, or if they introduced technological innovations that would reduce the need for their low paid services, which is brutal work. Intense cultivation of sugar cane has heavily impacted the watershed’s of Sao Paulo State, yet no complaints about this.

  • Nicholas usa_male

    I am soo glad that I didn’t rush buy myself a Flex car in 60 monthly installments

    Never rush to buy a car, no mattter what, but the point with Flex car is..it gives you choices. Here in the states we have no such choices.

  • João da Silva

    “We have to be careful. The world is watching. And it looks like we cannot even meet our own domestic demand!” said Lula referring to the reduced amount of ethanol that Brazil was now adding to gasoline due to a series of supply problems.[quote][/quote]

    But…But… the Brasilian consumers are watching helplessly as the prices of Ethanol and Gasoline are going up every two weeks at the pumps.;-)

    I am soo glad that I didn’t rush buy myself a Flex car in 60 monthly installments.:o

  • Eddy Lahens

    Being a Frontrunner in Fuel Technology means being Global
    To ensure that Brazil stays a frontrunner, it needs to also looks behyond its own borders to ensure supplies.
    1- diversy sources of sugarcane ( plant in Haiti…)
    2- diversify sources of ethanol ( make alliances with corn ethanol plantss in the US. provide them with capital and take some fuels from them). Notice India and Europe came to Brazil to buy sugarcane when they felt that they needed more of the stuff.
    3- Build the storage tanks. Brazil can use the extra corn based ethanol and ship the cane based fuel to Europe and Asia. Let the thechnolgy folks battle the efficiency of sugarcane vs corn.

    Being a frontrunner means running faster, harder.

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