Copersucar to supply Brazil ethanol to Japan

Eric Watkins
Senior Correspondent

LOS ANGELES, July 3 -- Brazilian ethanol producer Copersucar, eyeing increased export potential and growing competition, has signed an agreement to supply 200 million l./year of ethanol exports to Japan Biofuels Supply LLP (JBSL).

Copersucar's ethanol will be turned into ethyl tertiary butyl ether and will serve as a fuel additive in Japan, which allows fuel retailers to mix a 3% ethanol blend in nationally sold gasoline.

JBSL, which began marketing biogasoline in April 2007, is comprised of Idemitsu Kosan Co., Tonen General Sekiyu KK, Taiyo Oil Co., Fuji Oil Co., Cosmo Oil Co., Kyokuto Petroleum Industries Ltd., Kyushu Oil Co., Showa Shell Sekiyu KK, Nippon Oil Corp., and Japan Energy Corp.

JBSL plans to import 360,000 kl. of bioethanol from fiscal 2010. If Japan expands its blending of ethanol or ethyl tertiary butyl ether in its national gasoline as is expected in the coming years, Brazilian ethanol exports, which reached nearly 3.1 billion l. from the 2007-08 season, could nearly double.

Copersucar, one of the top sugar and ethanol groups in Brazil along with Cosan Industria e Comercio and Crystalsev, has increased its cane crushing capacity to 70 million tonnes this season, up from 65 million tonnes in 2007-08.

The group, which controls 33 cane mills, expects to produce 3.9 million tonnes of sugar—up 10% from last season—and 3.7 billion l. of ethanol, up 14% on the year.

Pipeline project
Earlier this month Cosan Industria e Comercio, along with Copersucar and Crystalsev, began building an ethanol pipeline linking the sugarcane milling area of Ribeirao Preto to the Santos port terminal.

A total of 1.6 billion reais is going to be invested in the project, which will become operational within 4 years, according to Cosan director Paulo Diniz.

Meanwhile, according to a Copersucar executive, Brazilian ethanol exports from the south-central region could rise this season by at least 50% over last year's crop as US demand for the biofuel surges.

"Total exports could reach 4.5-5 billion l.…due mainly to the increase in US ethanol prices," said Soren Jensen, international trading manager at Copersucar. "Exports this season will rise by at least 50%, possibly 60% or 70%," he said during an agribusiness seminar in Sao Paulo.

Brazil is the world's largest ethanol exporter, and the US currently is its main customer. However, Brazil's Petroleo Brasileiro SA (Petrobras) is expanding into the Japanese market and likely sees an opportunity to expand its sales of ethanol made from sugarcane.

The Brazilian firm brought the Okinawa-based Nansei Sekiyu KK, a supplier of fuel oil to Tepco, under its umbrella in April and plans to start selling gasoline blended with bioethanol in Japan within the year (OGJ, Apr. 7, 2008, Newsletter).

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

Russia’s Turkey pipeline deal possibly may keep door to Europe ajar

12/18/2014 Russia’s memorandum of understanding to build a natural gas pipeline to Turkey after canceling its South Stream project could help keep the door op...

EPP kills plans for Bakken-to-Cushing crude oil pipeline

12/15/2014 Enterprise Products Partners LP (EPP) has elected not to proceed with development of its proposed crude oil pipeline that would have extended 1,200...

Kinder Morgan to deliver natural gas to Corpus Christi Liquefaction

12/11/2014 Kinder Morgan Inc. (KMI) companies Kinder Morgan Texas Pipeline, Kinder Morgan Tejas Pipeline, and Tennessee Gas Pipeline Co. (TGP) have entered in...

BG agrees to sale of Australian gas pipeline to APA Group

12/10/2014

BG Group PLC agreed to sell its wholly owned subsidiary Queensland Curtis LNG Pipeline Pty. Ltd. (QCLNG) to APA Group for about $5 billion.

More West Texas gathering, processing to come onstream

12/09/2014 EagleClaw Midstream Services LLC, Midland, Tex., has bought natural gas gathering and processing in Reeves County, Tex. The company declined to ide...

Methane controls just part of complete climate strategy, speakers say

12/08/2014 Reducing oil and gas operations’ methane emissions is an essential, but far from the only, part of a comprehensive climate strategy, speakers at a ...

Rail tank car rule could cost economy billions, report says

12/08/2014 The US Pipeline and Hazardous Materials Safety Administration's (PHMSA) proposed rail tank car rule could cost the US economy as much as $60 billio...

Renewed dilbit investigation faces similar hurdles of past debate

12/05/2014 A National Research Council committee opened a second investigation of potential environmental consequences from diluted bitumen (dilbit) spills fr...

Southwestern continues Marcellus expansion

12/03/2014 Southwestern Energy Co., Houston, has signed an agreement to purchase oil and gas assets, including 46,700 net acres, in northeast Pennsylvania fro...

White Papers

Available Webcasts



The Future of US Refining

When Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Oil & Gas Journal’s Forecast & Review/Worldwide Pipeline Construction 2015

When Fri, Jan 30, 2015

The  Forecast & Review/Worldwide Pipeline Construction 2015 Webcast will address Oil & Gas Journal’s outlooks for the oil market and pipeline construction in a year of turbulence. Based on two annual special reports, the webcast will be presented by OGJ Editor Bob Tippee and OGJ Managing Editor-Technology Chris Smith.
The Forecast & Review portion of the webcast will identify forces underlying the collapse in crude oil prices and assess prospects for changes essential to recovery—all in the context of geopolitical pressures buffeting the market.

register:WEBCAST



On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected