Our industry 2014 - (Page 11)

  Global challenges  01     11   Demand   Since December 2011 the tax credit on ethanol production (46 cents/gallon)  as well as US import tariffs on foreign bioethanol (54 cents/gallon) have been  discontinued. However the US ethanol production and demand have remained  resilient. While the figures in the previous graph are correct at time of  publication, the current overall budget discussions in the United States may  result in changes to the RFS commitments and requirements.   In Brazil, ethanol from sugar cane produces ~35% of the world's bioethanol  and has replaced ~35% of the gasoline used in light vehicles in the country.  Sugar cane ethanol represents a low carbon and cost efficient fuel option in  comparison to many other biofuels. Sugar cane: low carbon and cost-efficient fuel option CO2 balance % Crude oil equivalent US$ per barrel 100 180 80 One ton of sugar cane  produces 80 liters of  ethanol compared  to 38 liters from one ton  of corn 150 US$ 100 per barrel oil price 128 110 85 40 45 10 Oil based gasoline Corn ethanol Oilseed rape 10 Palm Cellulose Sugar cane 10 Brazil sugar cane US corn Malaysia palm EU wheat US soybean EU oilseed rape CO2 output from sugar cane bioethanol is  90% lower than oil-based  gasoline Sources: Farrell et aI, Science January 2006; GTZ; Syngenta The Brazilian government continues to strongly support the bioethanol industry  and has returned to the mandatory blend of 25% in May 2013 (after two  consecutive years of poor sugar cane yields the mandate was temporarily  reduced to 20%). Around 60% of the country's automobile fleet is composed  of flex-fuel cars.  The EU Renewable Energy Directive in 2009 established a target of  a minimum of 10% renewables in transport for 2020 and requested national  action plans for each member state to outline a path for meeting the target.  More recently, an increasing public debate on competition between food and  fuel, aggravated by high crop prices, triggered the European Commission to  submit a draft biofuels policy limiting food-crop based biofuels to 5% of EU  transport fuel consumption. The draft still needs to be approved by the EU  governments. Brazil mandatory biofuels  blend rate planned to  return to 25% as sugar  cane production shows  signs of recovery

Table of Contents for the Digital Edition of Our industry 2014

Our industry 2014

https://www.nxtbook.com/syngenta/Our_industry/Our-industry-2014
https://www.nxtbookmedia.com