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Ethanol Derivatives as Growth Strategy for the Brazilian Chemical Industry Finds Frost & Sullivan - The Brazilian market for ethanol chemicals derivatives is in a mature, but growing stage, with promising growth projections for the next five years. The expectation is a growth of 35.7 % (CAGR) from 2009 to 2015
Ethanol Derivatives as Growth Strategy for the Brazilian Chemical Industry Finds Frost & Sullivan

 

PRZOOM - /newswire/ - Sao Paulo, Brazil, 2010/09/23 - The Brazilian market for ethanol chemicals derivatives is in a mature, but growing stage, with promising growth projections for the next five years. The expectation is a growth of 35.7 % (CAGR) from 2009 to 2015.

   
 
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By 2015, this market in Brazil expects to consume 665 kton of Ethanol.

Up to 2009, ethanol has had a very strong usage on solvents production, with 55.2% of its volume consumption in ethyl acetate and 12.7% in glycol ethers. Both solvents were applied mainly in paints and links. In addition, 27.5% of the volume was applied in the production of acetic acid, a main raw material in the ethyl acetate production. By 2015, the consumption of ethanol for chemical production is likely to increase considerably in Brazil mostly due to 2 new facilities that will be installed between 2010 and 2012. These startups will change the production focus mainly to plastic, with a forecast of 62.1% for polyethylene consumption.

In the medium and long terms, a large number of ethylene derivatives are likely to switch their naphtha and NG sources for ethanol to renewable sources with the increase of competitiveness and economy of scale of the latter. In 2015, 7% of polyethylene will derive from renewable raw material in Brazil.

With the increasing volumes of ethanol used for chemicals production, forecasts indicate a reduction in the dependence of the fuel market for ethanol producers. Derivatives production is likely to increase from 6 % in 2009 to 19% in 2015. "Main drivers for this market are availability of feedstock, large scale projects driving demand and focus on reducing the carbon footprint amongst key end- users sectors," notes Alessandra Lancellotti, Frost & Sullivan Chemicals, Materials & Food Research Team Leader.

On the other hand, factors such as sugar price fluctuation, few government initiatives for sustainable materials, low costumer awareness and high production costs (compared to conventional processes) can restraint the ethanol chemicals derivatives market in the next 5 years.

If you are interested in more information on this study, please send an email to Tatiana Brull, at tatiana.brull[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents.

Strategic Assessment of the Ethanol Chemicals Derivatives Market in Brazil / N826-39

 
 
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Ethanol Derivatives as Growth Strategy for the Brazilian Chemical Industry Finds Frost & Sullivan

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