Britain Reports Set Brazil's Ethanol Apart

SAO PAULO, Brazil, Jan. 16 /PRNewswire/ -- An important step in the
right direction. That is how Brazil's Sugarcane Industry Association
(UNICA) assesses the report "Sustainable Biofuels: Prospects and
Challenges", released by Britain's Royal Society on January 14, 2008. The
report's key conclusions are that each biofuel must be evaluated on its own
merits and governments should ensure their policies promote only the
sustainable production and use of biofuels that result in meaningful
emissions reduction.

According to UNICA President and CEO Marcos Jank, the Royal Academy's
conclusion should go a long way to clarify misleading and incomplete
information that often surfaces when Brazilian ethanol, produced from
sugarcane, is lumped together with less efficient biofuels produced from
non-sustainable sources.

"Biofuels can be produced from various feedstocks, and they are not all
the same," Jank says, emphasizing that ethanol from sugarcane produced in
Brazil is widely recognized as the most efficient in terms of reduced
greenhouse gas emissions, improved energy balance and lower production
costs.

"Studies produced in various countries frequently consider biofuels as
if they were somehow equals that one can compare. Unfortunately, some
studies arrive at broad conclusions without recognizing the profound
differences that exist among different biofuels. These generalizations are
often the basis for misleading assessments about Brazilian sugarcane
ethanol."

The Royal Society report highlights the importance of continued
independent research for a complete picture about the sustainability of
different types of biofuels. "The sugar and ethanol industry in Brazil is
ready to cooperate with these efforts. We find it essential that quality
analyses and unbiased comparisons continue to be produced and
disseminated," concludes Jank.

The British report comes at a defining moment for the future of
biofuels in Europe as a new directive governing the use of renewable energy
is expected to be issued on January 23. Once the directive is approved by
the European Parliament in coming months, it will lead to the
implementation of the decision reached by the heads of government of EU
member states requiring a 10% biofuel target for transportation fuels by
2020.

"We are optimistic that Europe will not only implement the 10% biofuel
mix, but to also adopt biofuel certification mechanisms that come from a
transparent consultative process that involves all interested parties,
including the world's major producers," says Jank.

About UNICA:

Brazil's 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 60% of the country's
total production. Along with its 101 member companies, UNICA develops
position papers, statistics and specific research in support of the sugar
and ethanol sector. Its membership accounts for about 50% of Brazil's
sugarcane harvest. In 2007, Brazil produced 425 million metric tons of
sugarcane, which yielded 29.8 million tons of sugar and 17.7 billion liters
of ethanol.