SOURCE: Five Star Equities

Five Star Equities

February 22, 2012 08:20 ET

Ethanol Production Surging -- Pacific Ethanol and Cosan Limited Begin to Benefit

Five Star Equities Provides Stock Research on Pacific Ethanol & Cosan Limited

NEW YORK, NY--(Marketwire - Feb 22, 2012) - Shares of ethanol producers have performed well in 2012 as demand continues to grow. A new report from Pike Research estimates that production of biologically-based fuels -- such as ethanol and biodiesel -- will increase from $82.7 billion in 2011 to $185.3 billion by 2021. Pike Research expects the Americas (the two largest producers of ethanol in the world are the US followed by Brazil) to account for 71 percent of total global biofuels production for most of the 2012-2021 period. Five Star Equities examines the outlook for companies in the ethanol industry and provides equity research on Pacific Ethanol Inc. (NASDAQ: PEIX) and Cosan Limited (NYSE: CZZ). Access to the full company reports can be found at:

According to a US energy sector report from EIC Consult, ethanol production will continue to increase this year, with the US exporting ethanol in greater amounts. EIC DataStream indicates that there are 42 future and active biofuel projects in the US.

According to the Washington, D.C.-based Renewable Fuels Association (RFA), 1.1 billion gallons of ethanol -- worth about $2.5 billion -- were exported to other nations, three times more than was exported in 2010. Exports accounted for 8.6 percent of U.S. ethanol production in 2011, according to the RFA, up from 3 percent in 2010 and 1 percent in 2009.

Five Star Equities releases regular market updates on the ethanol industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at and get exclusive access to our numerous stock reports and industry newsletters.

According to the RFA, the major importer of US ethanol was Brazil, with 33 per cent of the ethanol exports for the year heading to the South American giant. According to Ethanol Producer Magazine, Brazil has had a high demand for ethanol and low supplies, due to a variety of factors. Brazil's sugarcane season officially ends in March, but a Jan. 16 press release from UNICA, the Brazilian Sugarcane Industry Association, revealed that 2011 ethanol production from April to December was down 18.74 percent from the same time period in 2010.

Brazilian imports could drop sizably in the coming years, however, as the RFA recently called for an investigation into news that the Brazilian state of Sao Paulo planned to impose a 25 percent tax on all imported ethanol. "Because ethanol produced in Sao Paulo is tax exempt, ethanol imported into Sao Paulo from the United States and other areas is at a substantial economic disadvantage," wrote RFA President and CEO Bob Dinneen.

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