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Dow Jones Newswires: Shell Brazil To Export 150M Ltrs Of Ethanol To US In ’06

RIO DE JANEIRO (Dow Jones)–The Brazilian unit of Royal Dutch Shell (RDSB.LN) in early June started to export ethanol from Brazil to the United States, a company press official said Tuesday.  

Until year-end, Shell plans to export 150 million liters of Brazilian ethanol to the U.S., the official said. 

Brazil is the world’s leading ethanol exporter, and No. 2 ethanol producer after the U.S. 

U.S. ethanol demand is rising due to the elimination of the gasoline additive MTBE, a known ground water contaminant, by the U.S. refining industry.  

In the first five months of this year, the U.S. imported 280.3 million liters directly from Brazil, tripling from the roughly 92.7 million liters bought in  the year-earlier period. 

The production of Brazilian sugarcane ethanol is far cheaper than that in the U.S., where ethanol is mostly won from corn. 

The U.S., however, imposes a 54-cent-per-gallon duty on direct ethanol shipments, among other tariffs. 

Source: Bernd Radowitz, Dow Jones Newswires; +55-21-3288-5004;;

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