Raizen sells cellulosic ethanol to Europe at 26% premium

In Brazil, Raizen has secured its first export orders for cellulosic ethanol to Europe, and on top of that received a 26% premium over conventional ethanol prices of roughly 35 cents per gallon. The 26 million liter per year Piracicaba cellulosic ethanol plant was inaugurated on Wednesday but has been producing since December as it works through start up kinks. Production should jump to 42 million liters by October. The company says it won’t invest in further cellulosic ethanol plants until it can get production costs competitive with conventional ethanol.