The Brazilian sugar cane industry association UNICA said late Wednesday it welcomed the decision by the US Environmental Protection Agency, EPA, to reaffirm ethanol made from sugar cane as a low carbon renewable fuel, with 61% less emissions than gasoline.

"The EPA's decision underscores the many environmental benefits of sugarcane ethanol and reaffirms how this low carbon, advanced renewable fuel can help the world mitigate against climate change while diversifying America's energy resources," said UNICA's chief representative in Washington Joel Velasco.

The US agency said late Wednesday it had left yearly targets unchanged from an earlier proposal, with total renewables mandate for 2010 at 12.95 billion gallons, rising to 36 billion gallons by 2022.

The target for "advanced biofuels" was also kept unchanged, at 950 million gallons.

"In order to qualify for these new volume categories, fuels must demonstrate that they meet certain minimum greenhouse gas reduction standards, based on a lifecycle assessment, in comparison to the petroleum fuels they displace," EPA said.

Ethanol from sugar cane is classified as an advanced biofuel.

It is good news for Brazil which is the world's largest producer and exporter of sugar cane-based ethanol.

Other types of biofuels included in the category are "ethanol produced from corn starch at a new (or expanded capacity from an existing) natural gas-fired facility using advanced efficient technologies that we expect will be most typical of new production facilities", biobutanol from corn starch, biodiesel from soy oil and renewable diesel from waste oils, fats, and greases, diesel produced from algal oils, and cellulosic ethanol and cellulosic diesel "based on currently modeled pathways."

Isis Almeida, isis_almeida@platts.com

Beth Evans, beth_evans@platts.com