CORN ETHANOL

new perspectives in the Brazilian market

Abstract

The constant acquisition of new technologies has allowed for the continuous growth of productivity in the sugar-energy sector, projected by technologies such as second-generation ethanol, assisting in the increase of up to 50% in the production of ethanol per hectare of sugarcane. Due to the recent increase in the flexibility of the gasoline market and the consequent increase in the demand and price of ethanol, several industrial plants began to appear in Brazil in mid-2010, converting corn into this biofuel. This phenomenon is particularly strong in the Midwest, where the main objective is to add value to the whole grain chain, providing a better income distribution within the sector where there is high grain availability, high costs of use, and possibility for co-products. Corn as a raw material option for the production of biofuel is increasingly gaining national relevance, not only for ethanol plants that process only this grain, but also in sugarcane processing plants that can produce ethanol in the off-season of this crop. The aim of this article is to present a historical overview of the economic and social impacts and profitability of ethanol production from corn. As a result, it found that the cost structure gives high priority to the feedstock, followed by industrial costs for relatively more complex processes than sugarcane processing. Finally, the results show that the profitability of corn ethanol production in integrated flexible fuel plants is sensitive to changes in biofuel and feedstock prices.