Oct 05, 2010
Corn Ethanol Production Being Proposed for Mato Grosso
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Farmers in Mato Grosso are searching for a way to use their corn production without having to pay the ultra high transportation costs needed to move their corn out of the state. For several years, the farmers in the state have suffered through a lack of storage space for their corn, cash prices that are below the coast of production, and elevated transportation costs. One suggested alternative to transporting the corn to livestock producers in southern Brazil is to use the corn to produce ethanol which can be consumed within the state.
As a way to test this idea, a pilot ethanol plant is now up and running in Campos de Julio, which is located in the western part of the state 550 kilometers northwest of the capital of Cuiaba. If this project turns out to be successful, 40 additional ethanol plants using corn as the feedstock are planned for state. Supporters are hoping that 20-40% of Mato Grosso's corn production could eventually be used for ethanol production.
Early results from the pilot plant indicate that one ton of corn will produce 360 liters of ethanol and 330 kilograms of DDGs in addition to carbon dioxide that can be used in carbonated beverages. The DDGs of course would be used to produce animal feed.
The high cost of transportation is the primary driving force behind this effort. It can cost as much as US$ 3.50 a bushel to move the corn from Mato Grosso to livestock feeders in southern Brazil. During the last two years, the federal government has steeped in to purchase most of the corn produced in Mato Grosso and to subsidize the cost of moving the corn to export facilities or end users in southern Brazil. The program has been enormously expensive and many believe unsustainable over the long run.
Supporters of using corn to produce ethanol feel that the transportation savings alone are justification for the program. They indicate that converting corn to ethanol reduces the amount of truck transportation needed by 60%.