Brazil seeks to boost stagnant ethanol industry

Reuters
Mon Jun 6, 2011 2:32pm EDT
By Inae Riveras and Brian Winter

* Govt throws support behind greater ethanol investment
* Threat of regulation overhangs industry conference
* BNDES says will support expansion in ethanol production

SAO PAULO, June 6 (Reuters) - Brazil's government unveiled new financing and other incentives for sugar cane ethanol production on Monday, vowing to work closely with the private sector to boost production in an industry that has struggled recently despite its immense promise.

The state-run development bank BNDES announced that it would provide 30 billion to 35 billion reais ($19 billion to $22 billion) to finance expansion in the sugar cane sector through 2014, a major bet equivalent to about two-thirds of the
industry's annual output.

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