Obama's Visit to Brazil Yields 'Encouraging' Renewable Fuels Cooperation, According to Brazilian Sugarcane Industry Association

By Brazilian Sugarcane Industry Association unica, PRNE
Saturday, March 19, 2011

BRASILIA, Brazil, March 20, 2011 - Two important announcements involving renewable energy made on the
opening day of U.S. President Barack Obama's official visit to Brazil, both
directly relevant to Brazil's successful sugarcane ethanol industry, are
encouraging signs that Brazil and the U.S. are on a path to achieve free,
unobstructed trade for clean, renewable biofuels. The assessment came from
the President and CEO of the Brazilian Sugarcane Industry Association
(UNICA), Marcos Jank, one of the invited guests at events attended by Obama
in Brazil's capital, Brasilia.

The first major announcement expands the existing Memorandum of
Understanding (MoU) between Brazil and the U.S. to advance cooperation on
biofuels, signed in 2007, to include a new partnership for the development of
aviation biofuels. Key goals in the agreement include developing sustainable
aviation biofuels as an important means of reducing greenhouse gas emissions,
establishing common standards and specifications, and strengthening private
sector partnerships.

Of particular interest to UNICA is a clause calling on the two countries
to work to "prevent international barriers to biofuels trade and
development." Various companies are developing aviation fuels based on
sugarcane, including a three-way partnership between Brazilian regional jet
manufacturer Embraer, engine manufacturer General Electric and California
biotech company Amyris. In 2012, the trio intends to stage the first-ever
flight using jet fuel produced from sugarcane, using an Embraer aircraft
equipped with GE engines and owned by Brazil's Azul Airlines.

"These developments add to the signs of growing awareness we've been
witnessing in the United States in recent months about the need to develop
clean energy solutions cooperatively and reduce barriers to its trade and
development. Even avid supporters of heavy subsidies and steep tariffs that
prevent Brazilian ethanol from entering the U.S. market competitively are now
openly discussing what happens next, both in terms of technologies and
policy. Without admitting it, they're in fact recognizing that the current
situation can't last much longer because it works against everyone's best
interests. U.S. consumers are being denied access to clean, renewable
Brazilian sugarcane ethanol, which could be contributing to lower greenhouse
gas emissions and save Americans money at the pump," said Jank.

The other announcement of interest to Brazilian biofuels producers is the
launch of a Strategic Energy Dialogue that involves development and access to
Brazil's huge new petroleum reserves, but will also deal directly with clean
energy technologies. During a speech to about 500 Brazilian and U.S. business
executives in Brasilia, Obama pointed out that focusing on fossil fuels in
the near term doesn't mean losing sight of what needs to happen in the

"The only long-term solution to the world's dependence on fossil fuels is
clean energy technology, and that is why the United States and Brazil are
deepening our cooperation on biofuels, and why we're launching a U.S.-Brazil
Green Economy Partnership. Because we know that the development of clean
energy is one of the best ways to create new jobs and industries in both our
nations," Obama concluded, acknowledging that more than half of all vehicles
on the road in Brazil are flex-fuel capable and run primarily on biofuels.

Jank sees the new Green Economy Partnership as an additional and vital
step to strengthen ongoing U.S.-Brazil efforts to improve and expand
production and use of biofuels domestically as well as in third countries:
"This is a natural move for the top two renewable energy producers and users
in the world. Brazil and the United States should be leading by example,
working together to advance on all fronts, including breaking down trade
barriers that hinder the global expansion of biofuels."

With energy at the top of the agenda, prominent members of Brazil's
sugarcane ethanol industry were involved throughout the first day of
President Obama's visit to Brazil, including a luncheon offered by Brazilian
President Dilma Rousseff at the External Affairs Ministry, where UNICA's Jank
was among the guests with direct access to the U.S. President. At the end of
the day, Obama flew to Rio de Janeiro where he wraps up the Brazil visit on


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.

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    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 for CDN Corporate Communications

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