Brazil's ethanol expansion to bring 3.6 million jobs by 2010

Recently we reported about Nigeria's expectation that its cassava ethanol based biofuel program will yield 3 million direct jobs over the course of five years. A few days ago, Indonesia showed its 'millions' too and expects its green fuel program to bring in 2.5 million jobs in under three years time. Indeed, biofuels are job creation machines.

Now Brazil projects not less than 3.6 million jobs to arise out of its aggressive expansion of its sugarcane plantations, which it is currently undertaking. The country expects to more than double its annual exports of alcohol fuel, or ethanol, by 2010, Mines and Energy Minister Silas Rondeau says. Thanks to the rapid expansion of sugarcane areas, the country will export about 7.9 billion liters (2.1 billion gallons) of ethanol in 2010, up from current exports of about 3 billion liters (790 million gallons), Rondeau said at the Rio Oil and Gas Expo and Conference. [In 'barrel of oil equivalent' (boe) terms, we are talking about projected exports of roughly 100,000 boe/day].

"The potential for exports we have by 2010 is about 8 billion liters, generating about 3.6 million jobs directly and indirectly," Rondeau said in his opening remarks to the conference, which runs through Thursday.

Jobs will be created in sugar cane planting, harvesting, processing and transporting. Indirectly, the logistical sector involved in moving both raw materials, processed materials and finished goods will benefit (distribution, mixing, transmixing, storing, shipping), as well as trade, biotechnology and consultancy sectors. As always, it remains to be seen what the social and labor conditions of the workers at the bottom of the ethanol production pyramid are going to be.

Rondeau said thanks to an increase in the amount of area where sugarcane is planted Brazil's total production of ethanol is expected to rise to 26 billion liters (6.87 billion gallons) annually in 2010 up from the current production of around 16 billion liters (4.23 billion gallons) annually. [From roughly 193,000 boe/day to 313,000 boe/day].

Brazil is the world's second-biggest producer of ethanol after the United States and is the biggest exporter. Brazil also has the world's largest fleet of ethanol-powered cars _ seven out of every 10 new cars sold in Brazil are "flex fuel" vehicles that can run on gasoline, ethanol or any combination of the two. Brazil's state-run oil firm Petroleo Brasileiro SA, or Petrobras, said it expected to sign a long-term contract to export ethanol to Venezuela:
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The company's downstream director Paulo Roberto Costa said the exact volume and terms of the contract were still being discussed.

Petrobras already has made two ethanol shipments of 6.6 million gallons each to Venezuela this year, and this week is shipping another 5 million gallons, Costa said.

Earlier this year, Petrobras said it planned to export 40 million gallons of ethanol to Venezuela in 2006.

Petrobras hopes the export volume in the planned contract with Venezuela will be larger than this year's shipment.

The company this year also is making two shipments of 5 million gallons of ethanol to Nigeria, Costa said. Petrobras is in negotiations with the African country over a long-term ethanol supply contract.

Petrobras has promised Venezuela and Nigeria that it would transfer ethanol production technology to enable those countries to build their own domestic ethanol industries.

Petrobras said it doesn't plan to begin producing ethanol but will continue to distribute and export it.

The company currently plans to build the world's first ethanol-only pipelines from producing regions in central Brazil to the coast.

Source: Chron: Brazil Ethanol Exports to Rise Sharply .