The global energy matrix is undergoing transformation. Leaders and scientists from leading nations recognize the impact of CO2 emissions and the effects of man-made climate change. The petroleum civilization gives way to renewable energy sources and reverses the trend that dominated much of the 20th century. This change is happening at the same speed that the discomforts of global warming become palpable and powers such as India, China, the United States and the European Union are mobilizing to insert new sources of clean energy into their energy matrices.
Between 2006 and 2008, Brazilian ethanol production doubled to 24 billion liters and the trend is to maintain the same growth rate until 2015, surpassing 50 billion liters at the end of that period. The transformation of the ethanol market in Brazil took place due to the launch of cars with a flex engine, which gave consumers the opportunity to decide between alcohol and gasoline. With the increase in disposable income and the greater credit line for the automobile trade, the fleet of vehicles with a flex-fuel engine started to dominate the market – almost 90% of the cars sold today are flex-fuel -, further fueling domestic consumption of ethanol.
The Brazilian tradition in the sugar and alcohol sector has given the country a great advantage in terms of mastery of practices and technologies. Considering the global need for renewable fuels, ethanol based on sugarcane is one of the most viable alternatives, which represents an excellent commercial opportunity for Brazil. Furthermore, it is necessary to show that the sugar and alcohol sector is experiencing a new moment supported by a pyramid made up of professionalism, cutting-edge technology and sustainability.
The country needs to take advantage of the opportunity that the scenario offers to consolidate itself as a global leader in this sector, since it has 46% of its energy coming from renewable sources. In fact, Brazil has the best conditions to take the lead in the production and export of agricultural products, including commodities and biofuels. In view of the positive estimates of ethanol consumption for the coming years, and the export of five billion liters last year, the entry of Brazilian production into the US markets, with Obama's sustainable agenda, and in Europe is very nearest.
This scenario opens the market for investments by large companies such as ETH Bioenergia. In less than two years, ETH has developed a business model that combines competitiveness and sustainability, anchored in three production centers: São Paulo, Mato Grosso do Sul and Goiás. This model allows synergies between all units, scale and competitive costs, with the use of cutting-edge technology in production processes and professional training of the workforce. Despite being young in the sector, ETH Bioenergia doubles in size in the 2009/2010 harvest and grows at an accelerated rate. An ambitious initiative that moves forward with firm steps and responds to the challenges of clean and sustainable energy on a global level.
José Carlos Grubisich is a chemical engineer with a postgraduate degree in Advanced Management from Insead, France. He developed a large part of his career at the Rhône-Poulenc Group, where he held different positions in Brazil and abroad. He was president of Rhodia for Brazil and Latin America and vice president of Rhodia worldwide, with a presence on the group's executive committee. He was president of Braskem and awarded the “Executive Value Award” by Valor Econômico newspaper for six consecutive years. He currently assumes the presidency of ETH Bioenergia.