EPA Reaffirms Sugarcane Biofuel is Advanced Renewable Fuel with 61% Less Emissions than Gasoline

Brazilian Sugarcane Industry Welcomes U.S. EPA's Renewable Fuels Rules

SAO PAULO, February 3 - The U.S. Environmental Protection Agency (EPA) has confirmed that ethanol
made from sugarcane is a low carbon renewable fuel, which can contribute
significantly to the reduction of greenhouse gas (GHG) emissions. As part of
today's announcement finalizing regulations for the implementation of the
Renewable Fuel Standard (RFS2), the EPA designated sugarcane ethanol as an
advanced biofuel that lowers GHG emissions by more than 50%.

"The EPA's decision underscores the many environmental benefits of
sugarcane ethanol and reaffirms how this low carbon, advanced renewable fuel
can help the world mitigate climate change while diversifying America's
energy resources," said Joel Velasco, Chief Representative in Washington for
the Brazilian Sugarcane Industry Association (UNICA).

Sugarcane ethanol is a renewable fuel refined from cane that grows
typically in tropical climates. Compared to other types of ethanol available
today, using sugarcane ethanol to power cars and trucks yields greater
reductions in greenhouse gases and is usually much cheaper for drivers to
purchase. Brazil has replaced more than half of its fuel needs with sugarcane
ethanol — making gasoline the alternative fuel in that country and ethanol
the standard. Many observers point to sugarcane ethanol as a good option for
diversifying U.S. energy supplies, increasing healthy competition among
biofuel manufacturers and improving America's energy security.

The RFS2 will help the United States meet energy security and greenhouse
gas reduction goals sought by the Energy Independence and Security Act of
2007 (EISA). The new regulations establish minimum biofuels consumption in
the U.S. of more than 12 billion gallons (45 billion liters) in 2010, rising
to 36 billion gallons (136 billion liters) in 2022, of which 21 billion
gallons per year would have to be one of three types of advanced biofuels:
cellulosic, biomass diesel, and "other advanced," that meet required GHG
reduction thresholds as determined by the EPA.

Today, the EPA affirmed that sugarcane ethanol meets the "other advanced"
category in the RFS2, although with a GHG reduction level that exceeds the
requirement for all categories as well. Specifically, the EPA's calculations
show that sugarcane ethanol from Brazil reduces GHG emissions compared to
gasoline by 61%, using a 30-year payback for indirect land use change (iLUC)
emissions.

"We are pleased that the EPA took the time to improve the regulations,
particularly by more accurately quantifying the full lifecycle greenhouse
emission reductions of biofuels. The EPA's reaffirmation of sugarcane
ethanol's superior GHG reduction confirms that sustainably produced biofuels
can play an important role in climate mitigation. Perhaps this recognition
will sway those who have sought to raise trade barriers against clean energy
here in the U.S. and around the world. Sugarcane ethanol is a first
generation biofuel with third generation performance," noted Velasco.

Last year, UNICA submitted comments to the EPA with abundant
scientifically credible evidence showing that — even including indirect
emissions — sugarcane ethanol has a reduction of GHG emissions of 73-82%
compared with gasoline, on a 30- or 100-year time horizon respectively. The
RFS2 requires the use of at least 4 billion gallons (over 15 billion liters)
of "other advanced" renewable fuels a year by 2022. In 2010, the RFS requires
200 million gallons of this type of advanced renewable fuel.

"While we are reviewing the final ruling, it is clear that the EPA has
incorporated many of the comments that UNICA and other stakeholders made
during the public process. The EPA should be congratulated for the way it
upheld Obama's goals of transparency and scientific integrity in the
environmental rulemaking. And we hope that other governments will take note
of the manner in which the EPA has handled this process," concluded Velasco.

Brazil is a leader in the production of sugarcane ethanol, which is
widely considered to be the most efficient biofuel available today. In 2009,
Brazil produced over 7 billion gallons of sugarcane ethanol, most of which is
used in Brazil in flex fuel vehicles. As a result of Brazil's innovative use
of sugarcane ethanol in transportation and biomass for cogeneration,
sugarcane is the leading source of renewable energy in the nation,
representing 16% of the country's total energy needs. In fact, gasoline has
become the alternative fuel in Brazil, reducing the country's dependence on
fossil fuels and cutting emissions. A recent study in the November 2009
edition of the journal Energy Policy indicated that since 1975, over 600
million tons of CO2 emissions have been avoided thanks to the use of ethanol
in Brazil.

ABOUT UNICA

The Brazilian Sugarcane Industry Association (UNICA) represents the top
producers of sugar and ethanol in the country's South-Central region,
especially the state of Sao Paulo, which accounts for about 50% of the
country's sugarcane harvest and 60% of total ethanol production. UNICA
develops position papers, statistics and specific research in support of
Brazil's sugar, ethanol and bioelectricity sectors. In 2008, Brazil produced
an estimated 565 million metric tons of sugarcane, which yielded 31.3 million
tons of sugar and 25.7 billion liters (6.8 billion gallons) of ethanol.

    MORE INFORMATION:
    CDN Corporate Communications - Sao Paulo, Brazil

    Rosa Webster - (+5511) 3643-2707 / rosa.webster@cdn.com.br
    Mariane dos Santos - (+5511) 3643-2730 / mariane.santos@cdn.com.br

Rosa Webster, +5511-3643-2707, rosa.webster at cdn.com.br, or Mariane dos Santos, +5511-3643-2730, mariane.santos at cdn.com.br, both of CDN Corporate Communications for the Brazilian Sugarcane Industry Association