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Brazilian sugarcane group likes U.S. renewable energy pacts

Agreements between the United States and Brazil involving renewable energy that were announced during President Obama’s visit to South America have won praise from the Brazilian sugarcane industry association UNICA, and a more measured comment from the Renewable Fuels Association.

One agreement expands the existing Memorandum of Understanding, signed by Brazil and the U.S. in 2007 to advance cooperation on biofuels, to include a new partnership for the development of aviation biofuels. UNICA, the Brazilian sugarcane group, said in a news release today that a clause calling on the two countries to work to “prevent international barriers to biofuels trade and development” was “of particular interest.”

The second agreement between the two countries launches a strategic energy dialogue. That dialogue includes “the safe and sustainable development of Brazil’s deepwater oil and gas resources” and civilian nuclear energy, and as well as cooperation on biofuels and other renewals, according to the White House website.

UNICA noted, however, that Obama said in a speech in Brasilia that “the only long-term solution to the world's dependence on fossil fuels is clean energy technology.”

The group has been campaigning for years for the United States to end its tariff on Brazilian ethanol, and UNICA President Marcos Jank said the announcements were “encouraging signs that Brazil and the U.S. are on a path to achieve free, unobstructed trade for clean, renewable fuels.”

The UNICA news release noted that prominent members of Brazil’s sugarcane ethanol industry were involved in the energy portion of Obama’s weekend visit to Brasilia. UNICA noted that the events included a luncheon given hosted 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.”

UNICA represents the top producers of sugar and ethanol in Brazil’s south-central region, especially the state of Sao Paulo, which accounts for about 50 percent of the country’s sugarcane harvest and 60 percent of total ethanol production.

Matt Hartwig, a spokesman for the Renewable Fuels Association, said in an email that his group looks forward to “a constructive relationship with Brazil in which an honest discussion of policies can occur.”

“As we have previously stated, we believe all countries deserve the opportunity to develop domestic ethanol industries without interference from other nations and would welcome the cooperation of Brazil in spreading ethanol technologies to other nations in the hemisphere,” Hartwig said. But he noted that RFA is part of the Global Renewable Fuels Alliance – a group that represents more than 60 countries but that Brazil has chosen not to join.