Brazil cellulosic ethanol plant possible in 5 yrs

SAO PAULO, June 4 (Reuters) - Brazil could start a large-scale cellulosic ethanol plant in three to five years, as research progresses into the next generation of biofuels, a top Brazilian sugar cane research center said on Wednesday.

"In three to five years we could have a unit to produce second-generation ethanol on a large scale at competitive prices," said Nilson Boeta, director of the Sugar Cane Technology Center (CTC), a prominent research center based in Sao Paulo state.

Brazil and countries such as the United States and Canada are rushing to develop cellulosic ethanol from residues of products like switchgrass or wood chips -- a process fraught with technological hurdles gradually being overcome.

In Brazil, the feedstock would be sugarcane bagasse, a residue from ethanol and sugar production, as well as other parts of the sugar cane plant.

CTC is already running a small-scale unit and Brazil's state-run energy giant Petrobras (PETR4.SA)(PBR.N) has set up a pilot plant in the rush to develop the technology, which experts say should put an end to the food-versus-fuel debate.

(Reporting by Inae Riveras; Editing by Peter Murphy; Editing by David Gregorio)