Bioethanol in Brazil

In the mid-1980s - before any other country even thought of the idea - Brazil succeeded in mass-producing biofuel for motor vehicles: alcohol, derived from its plentiful supplies of sugar-cane. Brazil produced 15.9 billion liters of bioethanol in 2005, more than one-third of the world’s supply and second only to the United States.

Brazil and the United States together account for 70% of the world's total ethanol production. But Brazil is the largest exporter of ethanol with an export of near while US is a net importer. Export in 2007 amounts to almost 20% of its production of 5.5 billion gallons, and accounts for almost 50% of the global exports. Export is expected to double to 11 billion gallons by 2012.

(Left):  World ethanol production (Mgal/year) for 2006, showing top countries and Rest of the world (RoW)  (Right): Production trend and imports (Mgal/year) in the US

The raw data were collected from The United States Department of Agriculture (USDA) Foreign Agricultural Service (2006), the US Department of Commerce, the Renewable Fuels Association  and various industry sources. (Charts: Agbioforum.org)

Critics are concerned about deforestation emitting more carbon dioxide into the atmosphere, Brazil does not see this issue arising. Brazil already has vast tracts of land for sugarcane cultivation, there is no need to clear new forests. Brazil produces almost all its sugarcane from rain-fed agricultural practices, making it the world's most efficient producer of sugarcane. Brazil's ethanol is estimated to break even at $35 per barrel oil equivalent compared to around $45 - 55 in US and EU. Brazil’s bioethanol is the only large-scale biofuel program now able to expand without government subsidies. US’ bioethanol from corn, in contrast, is heavily subsidized.

A report released by Oxfam in June 2008 criticized biofuel policies of rich countries as neither a solution to the climate crisis nor to the oil crisis, while contributing to the food price crisis. The report concluded Brazilian sugarcane ethanol though "far from perfect" is the most favorable biofuel in the world in term of cost and GHG emissions.

In Brazil, the bioethanol substitutes half of the gasoline that would be used if it did not exist and cost is competitive without subsidies. That has been accomplished in 30 years since the Brazilian Ethanol Program was launched in the 1970s to reduce the dependence on oil imports. By then Brazil had already more than 40 years of research in blending ethanol with gasoline for light vehicle. In 1979, the first vehicle fuelled with 100% hydrated ethanol was introduced.

Various government policies were implemented to ensure the success of the ethanol industry. The incentives were: guarantee of payment and credit facilities to encourage ethanol production making the price of ethanol competitive tax incentives to ethanol fuelled car buyers ethanol pumps in all petrol stations maintenance of supply

Today, all 35,500 service stations in the country sell hydrated bioethanol and gasoline-bioethanol blends. Pure gasoline is no longer commercialized at the retail level anywhere in the country. The development of this distribution infrastructure resulted from strong political will and support from fuel distribution companies, dating back in the early days of implementation.

Ethanol emits less carbon dioxide than gasoline because it burns with a greater efficiency. The use of anhydrous ethanol reduces 2.7 kg carbon dioxide per liter of ethanol. Blending is made viable through cost effective manufacturing of the ethanol, facilitated through the use of modern boiler and turbine technology, more scientific farming for higher yield, cheap stock feeds (sugarcane), higher utilization of excess bagasse. It is estimated that between 1975 - 2005, the use of hydrated ethanol in light vehicles prevented the emission of 644 million tons of C0₂. This achievement has been acknowledged by the IPCC.

Such acknowledgement has also boosted the auto industries. Today, most car manufacturers produce models capable of using the new fuels. In the car owner manuals, benefits of ethanol in gasoline are emphasized, the like of enabling excellent performance, reducing emissions and improving air quality. Sales of flex-fuel vehicles increased to 75% of the total cars sales in 2006. Flex-fuel vehicles use variable % blend of hydrated ethanol with gasoline, mandated between a minimum of 20% to a maximum of 25% of ethanol.

E-85 is a hybrid motor vehicle which uses 15 per cent gasoline and 85 per cent ethanol as fuel. GM, Ford and Chrysler have already put six million Flex Fuel vehicles on the road in North America, enough to replace 29 billion gallons of gasoline per year, or 18 per cent of the gasoline burned annually if every driver used it all the time. (Pic: E-85 Flexi-Fuel Car)

Brazilian government is currently looking for new overseas markets in South Korea, Japan and European Union which has mandated a 5% biofuel use by 2012 and 10% by 2020.