What is the ethanol industry like around the world?

Ethanol industry is the one that has seen huge growth when it grew up from his childhood, followed by balancing as he ripened. While the industry and its process have some promise to help stop the use of fossil fuels, they pass through a number of growing pain caused mainly by price pressures on two different fronts. In addition, how competitive technologies come online, the existing ethanol industry will be forced to find a way to adapt or risk non -surveying.

While most in North America understand that corn grain is the main crop used by the Ethanol industry on the domestic market, it is not the only source of ethanol. Almost any crop, but especially those that have a high starch can be used for ethanol. In fact, in milder latitudes, such as Brazil, the ethanol industry mainly uses sugar cane. In fact, it is a much better choice than corn, because it has more starch according to weight and thus more energy.

At the beginning of the year 2000 This industry enjoyed unprecedented growth because safe gasoline additives were sought, especially with regard to the turn against MTBE, which was considered toxic to the environment. Low corn prices and high oil prices have created a perfect combination for this sector and the races were built throughout the Midwest at a record pace - almost one two to three weeks in some Midwest countries. At that time, the ethanol sector seemed to be a very attractive investment. The demand for renewable fuel sources, which included not ethanol but bionaft, will certainly continue to grow.

Like most trading enterprises, however, the ethanol industry is not immune to certain price pressures. The fact that so much corn was consumed in North America has led to higher corn prices, and thus reduced the profits of ethanol. Furthermore, when oil descended from its well -known grades, it was less motivated for people. In other words, the product has become more expensive, lost its hOutnut and attraction on the market.

In the second part of the decade, the market conditions have influenced the entire industry around the world. Oil is traded on the global market. While corn prices generally move based on conditions in the region, all tend to watch the same trends up or down over time. This is because the grain is becoming more and more becoming a global commodity. Part of the ethanol industry The most suitable for survival will probably be the one that comes in such a dangerous times.

As such, the view of Ethanol based on corn -based corn is extremely positive. The only thing that currently protects industry in the United States is a high tariff on Brazilian ethanol based on sugar. Scientists look at other, more starch crops such as Switchgrass, which one day can replace Ethanol corn in many production facilities. Nevertheless, the thg of the process will be devoted to research and development and additional equipment of the equipment.

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