Brazilian ethanol exports to California have been boosted recently by high carbon credit prices in the Californian market, which led to premiums to cane-based ethanol, Brazil’s Datagro consultancy said on Monday.
According to a report at Reuters, Datagro’s chief analyst Plinio Nastari said Brazilian ethanol receives a price premium to enter the California market due to its smaller carbon footprint compared with corn-based ethanol, what has allowed for increased volumes of exports in the last two months.
Nastari estimates Brazil shipped 171.7 million gallons of ethanol to California from January to September, double the volume seen in the same period a year earlier.
