Relying on a unique business model in the industry, Costa Bioenergia Ltda. does not have production assets, but rather contracts to acquire sugar and ethanol, mainly supplied by its Partner Mills. Costa Bioenergia Ltda. and its Partner Mills have achieved a level of maturity and readiness for the market that allows them to supply large global consumers.
This is the case for ethanol exports to the United States, which must comply with federal regulation of the Environmental Protection Agency (EPA), and the California market, which must comply with regulations from the California Air Resources Board (CARB), the state’s environmental protection agency.
The company also has two important certificates, Bonsucro™, which sets out sustainability standards for sugarcane production and is required by both domestic and international clients, and the International Sustainability and Carbon Certification (ISCC), which governs trading of ethanol to Europe.
It receives this name because it is comprised of 99.3% ethanol, practically void of water. It is marketed to fuel distributors to be added to gasoline, currently in a 27% ratio, as per agreement with the Brazilian government. As another example, in the USA, the average is 10%, depending on local regulations. Its use reduces pollution and contributes to the reduction of global warming.
This ethanol contains up to 7.5% water in its composition and is sold to distributors that market it to end consumers, in service stations. It can be used pure, or mixed in any proportion to gasoline in flex fuel vehicles, very common in Brazil. As with anhydrous ethanol, it provides the same environmental benefits and improves engine performance.