Wall Street Journal examines international investor failure to find Brazil ethanol acquisitions

The Wall Street Journal profiled the struggles of international investors to find acquisitions in the Brazilian ethanol industry. Ethanol producers such as Archer-Daniels-Midland, Australia’s CSR, Germany’s Südzucker, and India’s Bajaj Hindusthan have announced acquisition programs of up to $700 million but have come up empty.

Brazil’s ethanol barons have been reluctant to sell, or have quoted exorbitant prices.

Brazil provides more than 30% of its fuel through ethanol, and produced more than 4 billion gallons of sugar ethanol in 2006 with production projected for 2007 at 5.5 billion gallons.  All Brazilian cars use an E20 blend and approximately 4 million cars use E100.

Free Subscription to the Daily Biofuels Digest e-newsletter

Related Stories

Biofuels Digest Index falls 7.84 percent to new low of 59.69 amidst Wall Street wipeout

The Biofuels Digest Index™ (BDI), a basket of public biofuels stocks, lost a record 7.84 percent Monday to close at an all time low of 59.69 amidst a Wall Street wipeout occasioned by the failure of...

Accuracy of Wall Street Journal anti-ethanol subsidy story under question

By Jim Lane, Biofuels Digest editor In New York, the The Wall Street Journal ran an editorial on Christmas Eve which has gained wide currency in republication and quotation around the globe,. inclu...

Renewable Fuels Association getting flack from Wall Street Journal for $50 billion in proposed ethanol industry loan guarantees

In Washington, the Renewable Fuels Association continues to receive flack for its proposal for $1 billion in short-term loans from the government, and $50 billion in long-term loan guarantees. The Wal...

Today in Biofuels Opinion: “When Wall Street firms started investing their own money in renewable energy companies, they left ethanol far behind.”

The Toronto Globe and Mail: "Cheer up. The market crunch has produced some good news too. Here's one: The ethanol producers' lush, green fields are turning into Death Valley. An industry that should n...

Family-run sugar, ethanol mills in Brazil must consolidate, say analysts

In Brazil, analysts commenting on the merger of Louis Dreyfus' ethanol unit and Santelise Vale noted that "small mills will be squeezed out" in a looming consolidation of the 160 sugar and ethanol gro...

“US Biofuels Boom running on empty”, opines Journal, citing biodiesel woes, advanced biofuels delays

In New York, the Wall Street Journal has run a major article, "US Biofuel Boom running on empty," describing the 30 percent capacity utilization in the US biodiesel industry and relating quotes from i...