News from Bloomberg
Sept. 25 (Bloomberg) — Noble Group Ltd., which accounts for 10 percent of ethanol exports from Brazil, may start investing in production plants in the South American nation to benefit from forecast rising global demand.
“We want to position ourselves as a significant player in the global ethanol market,” Hong Kong-based Noble’s Chief Operating Officer Ricardo Leiman said Sept. 21. “The big opportunity in Brazilian ethanol is not only its domestic market but all these global markets.”
Brazil, the world’s biggest producer of sugar and ethanol, said last month prices of the fuel rose 20 percent in the past year. Investors including Bill Gates, Richard Branson and Vinod Khosla are pouring millions of dollars into biofuel companies on optimism that demand for alternative fuels will gain.
“Demand for ethanol will only be higher with many countries trying to move away from fossil fuels produced in unstable regions,” said Roger Groebli, head of equity research at ABN Amro Bank NV in Singapore, who personally holds shares in Noble. “I believe the vision of Noble, and I think in the medium-to-long term this is a very solid strategy to get market share.” [Read more…]