by Henrique OliveiraThe chart, titled "Learning Curve - The Example of Brazilian Ethanol as a Base for Biofuels", prepared by BNDES, Brazil's federal development bank, shows how ethanol production costs decreased significantly between 1980 and 1998.
The vertical (y) axis shows the amount of US dollars spent to produce one cubic meter of ethanol; the x axis shows ethanol cumulative consumption in Brazil over the same time period, measured in millions of cubic meters.
As the chart indicates, between 1980 and 1998, the cost of producing one cubic meter of ethanol went from approximately US$ 680 / cubic meter of ethanol to US$ 200 / cubic meter. A projection to 2006 points to a further decrease in the dollars-to-volume ratio of ethanol output; the actual cost today is likely to be about 1/4 of what it was just 25 years ago.
The graph is important because it indicates at what stage ethanol producers elsewhere in the world may find themselves right now.
Follow what's happening in the Brazilian ethanol market on Ethablog, the only blog in English dedicated to Brazilian ethanol.
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