Brazil has ethanol fuel available throughout the country. |utc_offset = -2 to -4 |time_zone_DST = BRST |utc_offset_DST = -2 to -5 |cctld Shown here a typical Petrobras gas station at São Paulo with dual fuel service, marked A for alcohol (ethanol) and G for gasoline. Petrobras ( Bovespa: PETR3 / PETR4 ( NYSE: PBR / PBRA( Latibex: XPBR / XPBRA short for Petróleo Brasileiro S São Paulo ( is the largest city in Brazil, with its metropolitan area ranking among the largest urban areas in the world Ethanol fuel is Ethanol (ethyl alcohol the same type of Alcohol found in Alcoholic beverages.

Four typical Brazilian full flex-fuel models from several car makers, popularly called "flex" cars, that run on any blend of ethanol and gasoline. |utc_offset = -2 to -4 |time_zone_DST = BRST |utc_offset_DST = -2 to -5 |cctld A flexible-fuel vehicle (FFV or dual-fuel vehicle ( Colloquially called a flex-fuel vehicle) is an alternative fuel Automobile or Ethanol fuel is Ethanol (ethyl alcohol the same type of Alcohol found in Alcoholic beverages.

Brazil is the world's second largest producer of ethanol and the world's largest exporter, and it is considered to have the world's first sustainable biofuels economy and the biofuel industry leader. |utc_offset = -2 to -4 |time_zone_DST = BRST |utc_offset_DST = -2 to -5 |cctld Sustainability, in a general sense is the capacity to maintain a certain process or state indefinitely ^[1][2][3] Together, Brazil and the United States lead the industrial world in global ethanol production, accounting together for 70% of the world's production^[4] and nearly 90% of ethanol used for fuel. |utc_offset = -2 to -4 |time_zone_DST = BRST |utc_offset_DST = -2 to -5 |cctld The United States of America —commonly referred to as the ^[5] In 2006 Brazil produced 16. 3 billion liters (4. 3 billion U.S. liquid gallons),^[6] which represents 33. A gallon is a measure of Volume. It is in current use in the United States and still has limited use in many other English-speaking countries 3% of the world's total ethanol production and 42% of the world's ethanol used as fuel. ^[5] Total production is predicted to reach at least 26. 4 billion litres (6. The litre or liter (see spelling differences) is a unit of Volume. 97 billion U.S. liquid gallons) for 2008. A gallon is a measure of Volume. It is in current use in the United States and still has limited use in many other English-speaking countries ^[7] Brazil’s 30-year-old ethanol fuel program uses modern equipment and cheap sugar cane as feedstock, the residual cane-waste (bagasse) is used for process heat and power, which results in a very competitive price and also in a high energy balance (output energy/input energy), which varies from 8. Ethanol fuel is Ethanol (ethyl alcohol the same type of Alcohol found in Alcoholic beverages. Sugarcane ( Saccharum) is a genus of 6 to 37 species (depending on taxonomic interpretation of tall perennial grasses (family Poaceae tribe Andropogoneae Bagasse (sometimes spelled bagass) is the Biomass remaining after Sugarcane or Sorghum stalks are crushed to extract their juice and is 3 for average conditions to 10. 2 for best practice production. ^[8]The Brazilian ethanol program provided nearly 700,000 jobs in 2003, and cut 1975–2002 oil imports by a cumulative undiscounted total of US$50 billion. ^[9] The production of ethanol is concentrated in the Center and Southeast regions of the country, which includes the main producer, São Paulo State. The Central-West Region is composed of the states of Goiás, Mato Grosso and Mato Grosso do Sul; along with Distrito Federal (Federal District The Southeast Region of Brazil is composed by the states of Espírito Santo, Minas Gerais, Rio de Janeiro and São Paulo. ( is a state in Brazil. It is the major industrial and economic powerhouse of the Brazilian economy These two regions were responsible for almost 90% of Brazil's ethanol production in 2004. ^[8]

There are no longer light vehicles in Brazil running on pure gasoline. Since 1977 the government made mandatory to blend 20% of ethanol (E20) with gasoline (gasohol), requiring just a minor adjustment on regular gasoline motors. Ethanol (ethyl Alcohol) and Methanol (methyl alcohol are two types of Alcohol fuels. Today the mandatory blend is allowed to vary nationwide between 20% to 25% ethanol (E25) and it is used by all regular gasoline vehicles, plus three million cars running on 100% anhydrous ethanol, and five million dual or flexible-fuel vehicles. Ethanol (ethyl Alcohol) and Methanol (methyl alcohol are two types of Alcohol fuels. The Brazilian car manufacturing industry developed flexible-fuel vehicles that can run on any proportion of gasoline and ethanol. ^[10] Introduced in the market in 2003, these vehicles became a commercial success,^[11] and by March 2008, the fleet of "flex" cars and light commercial vehicles had reached 5 million new vehicles sold,^[12] which represents around 10% of Brazil's motor vehicle fleet and 15. 6% of all light vehicles. ^[13] The success of "flex" vehicles, as they are popularly known, together with the mandatory use of E25 blend of gasoline throughout the country, allowed Brazil in 2006 to achieve more than 40% of fuel consumption from sugar cane-based ethanol for the light vehicle fleet,^[14][2] and represents almost 20% of total fuel consumption in the road transport sector when trucks and other diesel-powered vehicles are considered. Ethanol (ethyl Alcohol) and Methanol (methyl alcohol are two types of Alcohol fuels. ^[15]

Historical background

Since the second half of the 70's, and as a result of the 1973 oil crisis, the Brazil government has been promoting ethanol as a fuel. Ethanol (ethyl Alcohol) and Methanol (methyl alcohol are two types of Alcohol fuels. The 1973 oil crisis began on October 17 1973 when the members of Organization of Arab Petroleum Exporting Countries (OAPEC consisting of the Arab members of By 1978 the first gasohol automobile was developed. Ethanol (ethyl Alcohol) and Methanol (methyl alcohol are two types of Alcohol fuels. The Brazilian government provided three important initial drivers for the ethanol industry: guaranteed purchases by the state-owned oil company Petrobras, low-interest loans for agro-industrial ethanol firms, and fixed gasoline and ethanol prices where hydrous ethanol sold for 59% of the government-set gasoline price at the pump. Petrobras ( Bovespa: PETR3 / PETR4 ( NYSE: PBR / PBRA( Latibex: XPBR / XPBRA short for Petróleo Brasileiro S These pump-primers have made ethanol production competitive yet unsubsidized. ^[9] In recent years, the Brazilian untaxed retail price of hydrous ethanol has been lower than that of gasoline per gallon. ^[9] Approximately US$50 million has recently been allocated for research and projects focused on advancing the obtention of ethanol from sugarcane in São Paulo. ( is a state in Brazil. It is the major industrial and economic powerhouse of the Brazilian economy ^[18]

The Pró-Álcool or Programa Nacional do Álcool (National Alcohol Program) was a nation-wide program financed by the government to phase out all automobile fuels derived from fossil fuels (such as gasoline) in favour of ethanol. Fossil fuels or mineral fuels are fossil source Fuels that is Hydrocarbons found within the top layer of the Earth’s crust. It began with the anhydrous alcohol to blend with the gasoline. This mixture has been used since then and is now done with 24% of alcohol and 76% gasoline (commonly known as gasohol). Ethanol (ethyl Alcohol) and Methanol (methyl alcohol are two types of Alcohol fuels. The program successfully reduced by 10 million the number of cars running on gasoline in Brazil, thereby reducing the country's dependence on oil imports. The decision to produce ethanol from fermented sugarcane was based on the low cost of sugar at the time. Sugarcane ( Saccharum) is a genus of 6 to 37 species (depending on taxonomic interpretation of tall perennial grasses (family Poaceae tribe Andropogoneae Other sources of fermentable carbohydrates were tested such as the manioc. The cassava, yuca, manioc, or mandioca ( Manihot esculenta) is a woody Shrub of the Euphorbiaceae (spurge family native Sales of alcohol-only cars tumbled after an alcohol shortage coupled with low gas prices in the late 1980s to early 1990s. The 1980s oil glut was a surplus of crude oil caused by falling demand following the 1973 and 1979 energy crises. ^[19]

In May 2003 Volkswagen built for the first time a production flexible fuel car, the Gol 1. Not to be confused with Volkswagen Golf. The Volkswagen Gol is a Low cost Subcompact car designed in Brazil 6 Total Flex. Chevrolet followed two months later with the Corsa 1. Chevrolet (ˌʃɛvroʊˈleɪ - French origin (also known as Chevy) is a Brand of Automobile, produced by General Motors (GM The Opel Corsa is a supermini that has been produced by General Motors' European Subsidiary Opel since 1982 and has also been sold under a variety 8 Flexpower, using an engine developed by a joint-venture with Fiat called PowerTrain. Fiat SpA (an Acronym for Fabbrica Italiana Automobili Torino (Italian Automobile Factory of Turin) is an Italian automobile manufacturer That year production of full flex-fuel reached 39. 853 automobiles and 9. 411 light commercial vehicles. By 2005, popular manufacturers that build flexible fuel vehicles are Chevrolet, Fiat, Ford, Peugeot, Renault ,Volkswagen, Honda, Mitsubishi, Toyota and Citröen. Chevrolet (ˌʃɛvroʊˈleɪ - French origin (also known as Chevy) is a Brand of Automobile, produced by General Motors (GM Fiat SpA (an Acronym for Fabbrica Italiana Automobili Torino (Italian Automobile Factory of Turin) is an Italian automobile manufacturer Ford Motor Company is an American Multinational corporation and the world's fourth largest automaker based on Worldwide vehicle sales, following For the article about the bicycle manufacturer see Cycles Peugeot. This is about the company for other uses see Renault (disambiguation. () is a Multinational corporation, engine Manufacturer and engineering corporation headquartered in Japan. The, Mitsubishi Group of Companies, or Mitsubishi Companies is a Japanese conglomerate consisting of a range of autonomous businesses which share the Mitsubishi (pronounced) is a Multinational corporation headquartered in Japan, and is currently the world's largest Automaker. Citroën (pronounced See-Troh-Enn is a French Automobile manufacturer, founded in 1919 by André Citroën. ^[20] Flexible fuel cars were 15,2% of the car sales in 2004, 38,6% in 2005, 59,7% for 2006 and 71. 9% for 2007. ^[16][17] By March 2008, the fleet of dual-fuel vehicles, including autos and light commercial vehicles, had reached 5 million. ^[12]

Electricity from Sugarcane Bagasse

Ethanol plant at Sertãozinho, Brazil. |utc_offset = -2 to -4 |time_zone_DST = BRST |utc_offset_DST = -2 to -5 |cctld

Sucrose accounts for little more than 30% of the chemical energy stored in the mature plant; 35% is in the leaves and stem tips, which are left in the fields during harvest, and 35% are in the fibrous material (bagasse) left over from pressing. Bagasse (sometimes spelled bagass) is the Biomass remaining after Sugarcane or Sorghum stalks are crushed to extract their juice and is

Part of the bagasse is currently burned at the mill to provide heat for distillation and electricity to run the machinery. This allows ethanol plants to be energetically self-sufficient and even sell surplus electricity to utilities; current production is 600 MW for self-use and 100 MW for sale. This secondary activity is expected to boom now that utilities have been induced to pay "fair price "(about US$10/GJ or US$0. 036/kWh) for 10 year contracts. This is approximately half of what the World Bank considers the reference price for investing in similar projects (see below). The energy is especially valuable to utilities because it is produced mainly in the dry season when hydroelectric dams are running low. Estimates of potential power generation from bagasse range from 1,000 to 9,000 MW, depending on technology. Higher estimates assume gasification of biomass, replacement of current low-pressure steam boilers and turbines by high-pressure ones, and use of harvest trash currently left behind in the fields. For comparison, Brazil's Angra I nuclear plant generates 657 MW.

Presently, it is economically viable to extract about 288 MJ of electricity from the residues of one tonne of sugarcane, of which about 180 MJ are used in the plant itself. Thus a medium-size distillery processing 1 million tonnes of sugarcane per year could sell about 5 MW of surplus electricity. At current prices, it would earn US$ 18 million from sugar and ethanol sales, and about US$ 1 million from surplus electricity sales. With advanced boiler and turbine technology, the electricity yield could be increased to 648 MJ per tonne of sugarcane, but current electricity prices do not justify the necessary investment. (According to one report, the World bank would only finance investments in bagasse power generation if the price were at least US$19/GJ or US$0. 068/kWh. )

Bagasse burning is environmentally friendly compared to other fuels like oil and coal. Its ash content is only 2. 5% (against 30-50% of coal), and it contains no sulfur. Since it burns at relatively low temperatures, it produces little nitrous oxides. Moreover, bagasse is being sold for use as a fuel (replacing heavy fuel oil) in various industries, including citrus juice concentrate, vegetable oil, ceramics, and tyre recycling. The state of São Paulo alone used 2 million tonnes, saving about US$ 35 million in fuel oil imports.

Researchers working with cellulosic ethanol are trying to make the extraction of ethanol from sugarcane bagasse and other plants viable on an industrial scale. Cellulosic ethanol also know by the name Ceetol, is a Biofuel produced from wood grasses or the non-edible parts of plants

Economic and production indicators

The following are the key economic and production indicators of the ethanol industry in Brazil. Except where indicated, the following data apply to the 2003/2004 season. The labor figures are industry estimates, and do not take into account the loss of jobs due to replacement of other crops by sugarcane.

• Land use: 45,000 km² in 2000
• Labour: 1 million jobs (50% farming, 50% processing)
• Sugarcane: 344 million metric tonnes (50% sugar, 50% alcohol)
• Sugar: 23 million tonnes (30% is exported)
• Ethanol: 14 million m³ (7. 5 anhydrous, 6. 5 hydrated; 2. 4% is exported)
• Dry bagasse: 50 million tonnes
• Electricity: 1350 MW (1200 for self use, 150 sold to utilities) in 2001

Exports

Brazilian ethanol exports by selected country and region (2005-2007)[21][22][23][24] (Millions of liters)
Country/Region(1)	2007	%	2006	%	2005	%
United States(2)	932. The litre or liter (see spelling differences) is a unit of Volume. The United States of America —commonly referred to as the 75	26. 4	1,777. 43	51. 9	270. 97	10. 5
CBI countries(3)	910. The Caribbean Basin Initiative (CBI was a Unilateral and temporary United States program initiated by the 1983 "Caribbean Basin Economic Recovery Act" (CBERA 29	25. 8	530. 55	15. 5	554. 15	21. 4
Jamaica	308. Jamaica (ˈdʒəˈmeɪkə} is an Island nation of the Greater Antilles, in length and as much as in width situated in the Caribbean Sea. 97		131. 54		133. 39
El Salvador	224. El Salvador ( República de El Salvador,) is a country in Central America. 40		181. 14		157. 85
Costa Rica	170. Costa Rica, officially the Republic of Costa Rica ( Spanish: Costa Rica or República de Costa Rica,) is a Country in 37		91. 26		126. 69
Trinidad and Tobago	158. The Republic of Trinidad and Tobago (ˈtrɪnɪdæd ən təˈbeɪgoʊ is an archipelagic state in the southern Caribbean, lying northeast of the South American 87		71. 58		36. 12
Mexico	42. The United Mexican States ( or commonly Mexico (ˈmɛksɪkoʊ () is a federal constitutional Republic in North America. 21		50. 24		100. 10
European Union	1,004. The European Union ( EU) is a political and economic union of twenty-seven member states, located primarily in 17	28. 4	587. 31	17. 1	530. 73	20. 5
Netherlands	808. The Netherlands ( Dutch:, ˈnedərlɑnt is the European part of the Kingdom of the Netherlands, which consists of the Netherlands the Netherlands 56		346. 61		259. 40
Sweden	116. "Sverige" redirects here For other uses see Sweden (disambiguation and Sverige (disambiguation. 47		204. 61		245. 89
Japan	364. For a topic outline on this subject see List of basic Japan topics. 00	10. 3	225. 40	6. 6	315. 39	12. 2
Niger	122. Niger ( or /ˈnaɪdʒɚ/) officially the Republic of Niger, is a Landlocked country in Western Africa, named after the Niger River. 88		42. 68		118. 44
Republic of Korea	66. South Korea, officially the Republic of Korea and often referred to as Korea ( Korean: 대한민국 tɛː 69		92. 27		216. 36
India	0		10. India, officially the Republic of India (भारत गणराज्य inc-Latn Bhārat Gaṇarājya; see also other Indian languages) is a country 07		410. 76	15. 8
Total world exports	3,532. 67	100	3,426. 86	100	2,592. 29	100
Notes: (1)Only countries with more than 100,000 liters imports on a given year are shown. (2)It includes exports to Puerto Rico and U.S.Virgin Islands. Puerto Rico (ˌpwertoˈriko officially the Commonwealth of Puerto Rico ("Estado Libre Asociado de Puerto Rico" {{lang-en|"Associated Free State of Puerto Rico"}} The United States Virgin Islands is a group of Islands in the Caribbean that are an Insular area of the United States. (3) Including Mexico that trades with the U. The United Mexican States ( or commonly Mexico (ˈmɛksɪkoʊ () is a federal constitutional Republic in North America. S. under NAFTA.

Brazil is the world's largest exporter of ethanol, in 2007 exported 933. 4 million gallons (3,532. 7 million liters),^[21][22] representing almost 20% of its production, and accounts for almost 50% of the global exports. The litre or liter (see spelling differences) is a unit of Volume. ^[25] Since 2004 Brazilian exporters have as their main customers the United States, Netherlands, Japan, Sweden, Jamaica, El Salvador, Costa Rica, Trinidad & Tobago, Nigeria, Mexico, India, and South Korea. The United States of America —commonly referred to as the The Netherlands ( Dutch:, ˈnedərlɑnt is the European part of the Kingdom of the Netherlands, which consists of the Netherlands the Netherlands For a topic outline on this subject see List of basic Japan topics. "Sverige" redirects here For other uses see Sweden (disambiguation and Sverige (disambiguation. Jamaica (ˈdʒəˈmeɪkə} is an Island nation of the Greater Antilles, in length and as much as in width situated in the Caribbean Sea. El Salvador ( República de El Salvador,) is a country in Central America. Costa Rica, officially the Republic of Costa Rica ( Spanish: Costa Rica or República de Costa Rica,) is a Country in The Republic of Trinidad and Tobago (ˈtrɪnɪdæd ən təˈbeɪgoʊ is an archipelagic state in the southern Caribbean, lying northeast of the South American Nigeria, officially named the Federal Republic of Nigeria, is a federal Constitutional republic comprising thirty-six states and one Federal The United Mexican States ( or commonly Mexico (ˈmɛksɪkoʊ () is a federal constitutional Republic in North America. India, officially the Republic of India (भारत गणराज्य inc-Latn Bhārat Gaṇarājya; see also other Indian languages) is a country South Korea, officially the Republic of Korea and often referred to as Korea ( Korean: 대한민국 tɛː ^[25]

The countries in the Caribbean Basin import relative high quantities of Brazilian ethanol, but not much is destined for domestic consumption. The Caribbean Basin is generally defined as the area running from Florida westward along the Gulf coast, then south along the Mexican coast through These countries reprocess the product, usually converting Brazilian hydrated ethanol into anhydrous ethanol, and then re-export to the United States, gaining value-added and avoiding the 2. 5 percent duty and the USD 0,54 per gallon tariff, thanks to the trade agreements and benefits granted by Caribbean Basin Initiative (CBI). The United States dollar ( sign: $; code: USD) is the unit of Currency of the United States; it has also been For other uses of this word see Tariff (disambiguation. A tariff is a tax imposed on goods when they are moved across a political boundary The Caribbean Basin Initiative (CBI was a Unilateral and temporary United States program initiated by the 1983 "Caribbean Basin Economic Recovery Act" (CBERA This process is limited by a quota, set as 7% of U. S. ethanol consumption. ^[26] Although direct U. S. exports fell in 2007, imports from four CBI countries almost doubled, increasing from 15. 5% in 2006 to 25. 8% in 2007, reflecting increasing re-exports to the U. S. , thus partially compensating the loss Brazilian direct exports to the U. S. This situation has caused some concerns in the United States, as this country and Brazil are trying to built a parternship to increase ethanol production in Latin American and the Caribbean. as the U. S. is encouraging "new ethanol production in other countries, production that could directly compete with U. S. -produced ethanol". ^[27]

The U. S. , potentially the largest market for the Brazilian ethanol, currently imposes trade restrictions on Brazilian ethanol of USD 0,54 per gallon, in order to encourage domestic ethanol production, most of which has so far been based on processing corn instead of sugar cane or soybeans, which is much less efficient. The United States dollar ( sign: $; code: USD) is the unit of Currency of the United States; it has also been There is concern that allowing the Brazilian ethanol to enter the U. S. market without taxation will undercut the budding ethanol industry in the United States^[28]. One of the arguments for that is that Brazil currently subsidises its ethanol production, which is false, as the subsidies program finished in the 1990s^[29]. Others argue that rather than impose trade restrictions on the import of the Brazilian product, that the U. S. should make subsidies of its own available to support its fledgling domestic producers. Exports of Brazilian ethanol to the U. S. reached a total of US$ 1 billion in 2006, an increase of 1,020% over 2005 (US$ 98 millions),^[30] but fell signigicantly in 2007 due to sharp increases in American ethanol production from maize. Maize (ˈmeɪz ( Zea mays L. ssp mays) known as corn in some countries is a cereal grain domesticated in Mesoamerica ^[31][32]

As shown in the table, together, the United States, the European Union, the CBI countries with Mexico, and Japan, were the destination of 91% of Brazilian ethanol exports, both in 2007 and 2006. The European Union ( EU) is a political and economic union of twenty-seven member states, located primarily in The Caribbean Basin Initiative (CBI was a Unilateral and temporary United States program initiated by the 1983 "Caribbean Basin Economic Recovery Act" (CBERA As of 2007, the European Union region, led by the Netherlands, is the main importer of Brazilian ethanol, with 265. 3 million gallons (1,004. 2 million liters)^[21]. However, and despite of reduced direct imports, the United States continues to be the single one country where Brazilian ethanol is exported, reaching 228. 96 million gallons (866. 6 million liters) to the continental U.S., 13. The term continental United States refers to the 48 contiguous states located on the North American continent south of the border with Canada plus the District 78 million gallons (52. 1 million liters) shipped to the U.S. Virgin Islands, and 3. The United States Virgin Islands is a group of Islands in the Caribbean that are an Insular area of the United States. 68 million gallons (14. 0 million litters) shipped to Puerto Rico, for a total export for the U. Puerto Rico (ˌpwertoˈriko officially the Commonwealth of Puerto Rico ("Estado Libre Asociado de Puerto Rico" {{lang-en|"Associated Free State of Puerto Rico"}} S. in 2007 of 246. 4 million gallons (932. 75 million liters),^[21] down from 469. 6 billion gallons (1. 77 billion liters) in 2006. ^[23]

Effect on oil consumption

Most automobiles in Brazil run either on alcohol (E100) or on gasohol (E25) since the government made mandatory the use of 24% ethanol in the blend sold in the entire country. Ethanol (ethyl Alcohol) and Methanol (methyl alcohol are two types of Alcohol fuels. Ethanol (ethyl Alcohol) and Methanol (methyl alcohol are two types of Alcohol fuels. Since 2003, dual-fuel ("Flex-Fuel") or full flex-fuel vehicles that run on any proportion of ethanol and gasoline have been gaining popularity, reaching 5 million new cars and light commercial vehicles by March 2008,^[12] and 72% of car manufacturing production is dual-flex without additional cost for buyers. A flexible-fuel vehicle (FFV or dual-fuel vehicle ( Colloquially called a flex-fuel vehicle) is an alternative fuel Automobile or Customers have 49 models available to chose from. Brazilian full flex-fuel vehicles hava electronic sensors that automatically detect the type of fuel and the blend mix, and accordingly adjust the engine combustion. Users have the freedom to choose depending on the free market prices of each fuel. ^[1]

Alcohol and gasoline prices per liter at Rio de Janeiro (left) and São Paulo (right), corresponding to a price ratio of ethanol/gasoline of 1,56 and 1,76 (2008). Ethanol fuel is Ethanol (ethyl alcohol the same type of Alcohol found in Alcoholic beverages. For information on the price of oil see Price of petroleum. The usage and pricing of Gasoline (petrol results The litre or liter (see spelling differences) is a unit of Volume. Rio de Janeiro ("River of January" ˈhiw dʒi ʒʌˈnejɾu in Brazilian Portuguese, /ˈriːoʊ di ʒəˈnɛroʊ/ in English is the second largest city of Brazil São Paulo ( is the largest city in Brazil, with its metropolitan area ranking among the largest urban areas in the world

Due to the lower energy content of ethanol fuel, full flex-fuel vehicles get fewer miles per gallon. Ethanol price has to be between 25-30% cheaper per gallon to reach the break even point. ^[2] Since 2005, ethanol price has been very competitive without any subsidies,^[1] even with gasoline prices kept constant in local currency since mid-2005,^[33] at a time when oil was just approaching USD 60 a barrel. The United States dollar ( sign: $; code: USD) is the unit of Currency of the United States; it has also been The price ratio between gasoline and ethanol fuel has been well above 30% during this period, except during low sugar cane supply between harvests. According to Brazilian producers, ethanol can remain competitive if the price of oil does not fall below USD 30 a barrel. ^[3]

Presently the use of ethanol as fuel by Brazilian cars - as pure ethanol and in gasohol - replaces gasoline at the rate of about 27,000 cubic metres per day, or about 40% of the fuel that would be needed to run the light vehicle fleet on gasoline alone. In 2006 ethanol represented almost 20% of total fuel consumption in the road transport sector when trucks and other diesel-powered vehicles are considered. ^[15][14]

However, the effect on the country's overall oil use was much smaller than that: domestic oil consumption still far outweighs ethanol consumption. In 2005, Brazil consumed 2,000,000 barrels of oil per day, versus 280,000 barrels of ethanol. ^[34] Although Brazil is a major oil producer and now exports gasoline (19,000 m³/day), it still must import oil because of internal demand for other oil byproducts, chiefly diesel fuel (which cannot be easily replaced by ethanol).

According to government statistics Brazil produced 17. 471 billion litres of ethanol in 2006, 23 billion litres in 2007 and in 2008, the Companhia Nacional de Abastecimento (Conab), expects a production growth around 14. 97% and 19. 46%, bringing the total ethanol production ranging from 26. 45 to 27. 9 billion litres. ^[35]

Comparison with the United States

Brazil's sugar cane-based industry is far more efficient than the U. S. corn-based industry. Sugar cane ethanol has an energy balance 7 times greater than ethanol produced from corn. ^[1] Brazilian distillers are able to produce ethanol for 22 cents per liter, compared with the 30 cents per liter for corn-based ethanol. ^[36] Sugarcane cultivation requires a tropical or subtropical climate, with a minimum of 600 mm (24 in) of annual rainfall. Sugarcane is one of the most efficient photosynthesizers in the plant kingdom, able to convert up to 2% of incident solar energy into biomass. Ethanol is produced by yeast fermentation of the sugar extracted from sugar cane. Sugarcane production in the United States occurs in Florida, Louisiana, Hawaii, and Texas. In prime growing regions, such as Hawaii, sugarcane can produce 20 kg for each square meter exposed to the sun.

U. S. corn-derived ethanol costs 30% more because the corn starch must first be converted to sugar before being distilled into alcohol. Despite this cost differential in production, the U. S. does not import more Brazilian ethanol because of U. S. trade barriers corresponding to a tariff of 54-cent per gallon – a levy designed to offset the 51-cent per gallon blender's federal tax credit that is applied to ethanol no matter its country of origin. For other uses of this word see Tariff (disambiguation. A tariff is a tax imposed on goods when they are moved across a political boundary ^[37] One advantage U. S. corn-derived ethanol offers is the ability to return 1/3 of the feedstock back into the market as a replacement for the corn used in the form of Distillers Dried Grain. ^[38]

Comparison of key characteristics between the ethanol industries in the United States and Brazil
Characteristic	Brazil	U.S.	Units/comments
Feedstock	Sugar cane	Maize	Main cash crop for ethanol production, the US has less than 2% from other crops. |utc_offset = -2 to -4 |time_zone_DST = BRST |utc_offset_DST = -2 to -5 |cctld The United States of America —commonly referred to as the In Agriculture, a cash crop is a crop which is grown for Money.
Total ethanol production (2007) [6]	5,019. 2	6,498. 6	Million U.S. liquid gallons
Total arable land [39]	355	270(1)	Million hectares. A gallon is a measure of Volume. It is in current use in the United States and still has limited use in many other English-speaking countries Explanation The hectare is commonly used in most countries around the world especially in domains concerned with land planning and management such as Agriculture,
Total area used for ethanol crop [39][38]	3. 6 (1%)	10 (3. 7%)	Million hectares (% total arable)
Productivity per hectare [39][1][38]	7,500	3,000	Liters of ethanol per hectare. Explanation The hectare is commonly used in most countries around the world especially in domains concerned with land planning and management such as Agriculture, The litre or liter (see spelling differences) is a unit of Volume. Explanation The hectare is commonly used in most countries around the world especially in domains concerned with land planning and management such as Agriculture, Brazil is 727 to 870 gal/acre (2006), US is 321 gal/acre (2005/06)
Energy balance (input energy productivity) [3][38][8]	8 to 10 times	1. 3 to 1. 6 times	Ratio of the energy obtained from ethanol/energy expended in its production
Estimated greenhouse gas emission reduction [5][38][40]	86-90%(2)	10-30%(2)	% GHGs avoided by using ethanol instead of gasoline, using existing crop land. Greenhouse gases are gaseous constituents of the atmosphere bothnatural and anthropogenic that absorb and emit radiation at specific wavelengths within the spectrum of thermal infrared
Ethanol fueling stations in the counrty[1][2]	33,000 (100%)	873 (0,5%)	As % of total fueling gas stations in the country. U. S. has 170,000 (see Inslee, op cit pp. 161)
Fuel ethanol used by the road transport sector [15][14]	20%(3)	3. 6%	As % of the sector's total on a volumetric basis for 2006.
Cost of production (USD/gallon) [1]	0. The United States dollar ( sign: $; code: USD) is the unit of Currency of the United States; it has also been A gallon is a measure of Volume. It is in current use in the United States and still has limited use in many other English-speaking countries 83	1. 14	2006/2007 for Brazil (22¢/liter), 2004 for U. S. (35¢/liter)
Government subsidy (in USD) [39][2]	0	0. The United States dollar ( sign: $; code: USD) is the unit of Currency of the United States; it has also been 51/gallon	U. S. as of 2008-04-30. 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common Events 313 - Roman emperor Licinius unifies the entire Eastern Roman Empire under his rule Brazilian ethanol production is no longer subsidized.
Import tariffs (in USD) [3][1]	0	0. The United States dollar ( sign: $; code: USD) is the unit of Currency of the United States; it has also been 54/gallon	As of April 2008, Brazil does not import ethanol, the U. S. does
Notes: (1) Only contigous U. S. , excludes Alaska. Alaska ( Аляска Alyaska) is a state in the United States of America, in the northwest of the North American continent (2) Assuming no land use change. [40] (3) Excluding diesel-powered vehicles, ethanol consumption in the road sector is more than 40% [1][2]

Ethanol Diplomacy

Main article: Food vs fuel#The 2007 controversy: Ethanol diplomacy in the Americas

In March 2007, "ethanol diplomacy" was the focus of President George W. Bush's Latin American tour, in which he and Brazil's president, Luiz Inacio Lula da Silva, were seeking to promote the production and use of sugar cane based ethanol throughout Latin America and the Caribbean. Food vs fuel is the dilemma regarding the risk of diverting farmland or crops for Biofuels production in detriment of the Food George Walker Bush ( born July 6 1946 is the forty-third and current President of the United States. Luiz Inácio Lula da Silva (pronounced /lu'iz i'nasju 'lulɐ da 'siwvɐ/; born October 27, 1945) known simply as Lula, is the thirty-fifth and The Caribbean (ˌkærəˡbiən kæ'rəbiən Cariben|Caraïben or Caraïben; Caraïbe or more commonly Antilles; Caribe is a Region consisting The two countries also agreed to share technology and set international standards for biofuels. ^[4] The Brazilian sugar cane technology transfer will permit various Central American, such as Honduras, Nicaragua, Costa Rica and Panama, several Caribbean countries, and various Andean Countries tariff-free trade with the U. Honduras in Spanish, República de Honduras) is a democratic republic in Central America. Nicaragua (ˌnɪkəˈrɑgwə officially the Republic of Nicaragua () is a representative democratic republic and the largest nation in Central America Costa Rica, officially the Republic of Costa Rica ( Spanish: Costa Rica or República de Costa Rica,) is a Country in Panama, officially the Republic of Panama (República de Panamá) is the southernmost country of Central America. The Caribbean (ˌkærəˡbiən kæ'rəbiən Cariben|Caraïben or Caraïben; Caraïbe or more commonly Antilles; Caribe is a Region consisting The Andean Community ( Spanish: Comunidad Andina, CAN) is a Trade bloc comprising the South American countries of S. thanks to existing concessionary trade agreements. Even though the U. S. imposes a USD 0. The United States dollar ( sign: $; code: USD) is the unit of Currency of the United States; it has also been 54 tariff on every gallon of imported ethanol, the Caribbean nations and countries in the Central American Free Trade Agreement are exempt from such duties if they produce ethanol from crops grown in their own countries. The expectation is that using Brazilian technology for refining sugar cane based ethanol, such countries could become exporters to the United States in the short-term. ^[41] In August 2007, Brazil's President toured Mexico and several countries in Central America and the Caribbean to promote Brazilian ethanol technology. The United Mexican States ( or commonly Mexico (ˈmɛksɪkoʊ () is a federal constitutional Republic in North America. ^[42]

Environmental effects

Sugar cane plant (Saccharum officinarum).

The improvement in air quality in big cities in the 1980s, following the widespread use of ethanol as car fuel, was widely evident; as was the degradation that followed the partial return to gasoline in the 1990s.

However, the ethanol program was not perfect and brought a host of environmental and social problems of its own. Sugarcane fields were traditionally burned just before harvest, in order to remove the leaves, kill any snakes and fertilize the fields with ash. The smoke produced each season produces the same amount of carbon pollution as the sugarcane would have produced if it were left in the field to rot, which is relatively little. This practice has been decreasing of late, due to pressure from the public and health authorities. In Brazil, a recent law has been created in order to ban the burning of sugarcane fields, and machines will replace human labor as the means of harvesting cane. This not only solves the problem of pollution from burning fields, but new machines also have a higher productivity than people.

Many nations have produced alcohol fuel with limited destruction to the environment. Advancements in fertilizers and natural pesticides have all but eliminated the need to burn fields, however chemical pollution from runoff may turn out to be just as harmful to the environment as the smoke. To ensure long-term viability for Brazil’s ethanol fuel industry, growers must be focused on sustainability rather than short-term productivity.

Other criticism focused on the potential for rain forests to be cleared for sugarcane crop production. Brazil's president, Luiz Inacio Lula da Silva claims this will not happen: "The Portuguese discovered a long time ago that the Amazon isn't a place to plant cane. Luiz Inácio Lula da Silva (pronounced /lu'iz i'nasju 'lulɐ da 'siwvɐ/; born October 27, 1945) known simply as Lula, is the thirty-fifth and "^[43]

Social implications

Main article: Food vs fuel

Sugarcane has an important social contribution to the poorest people in Brazil. Food vs fuel is the dilemma regarding the risk of diverting farmland or crops for Biofuels production in detriment of the Food Although it still improves little the life conditions of this segment of Brazilian society, especially in comparison to industrialized countries living standards, having a temporary work at sugarcane harvest fields is, for many, the only option to survive.

There has been a great amount of harvest automation though, especially in the richest and more mature sugarcane producers of São Paulo state, thus dismissing hundreds of labor workers in place of air-conditioned sugarcane harvesting trucks. As production sparks in other states in Brazil, mainly in the Northeast Region, where lack of job positions and social issues amount much further, to give incentives to coming sugarcane producers as long as they employ harvest workers instead of implementing less labor intensive and more modern techniques.

Some question the viability of biofuels like ethanol as total replacements for gasoline/crude oil. One concern is that sugarcane cultivation will displace other crops, thus causing food shortages. However, these concerns do not correspond to the current situation in Brazil. Despite having the world's largest sugarcane crop, the 45,000 km² Brazil currently devotes to sugarcane production amount to only about one-half of one percent of its total land area of some 8. 5 million km². In addition, the country has more unused potential cropland than any other nation. Some commentators, like George Monbiot, fear that the marketplace will convert crops to fuel for the rich, while the poor starve and biofuels cause environmental problems. George Joshua Richard Monbiot (born 27 January, 1963) is a left-wing Journalist, Author, Academic and environmental It is unclear how this would be different from the current situation, as most food crops are grown and exported to richer nations, and neglects the very real environmental problems that the burning of fossil fuels causes. The cultivation of sugarcane for energy production is only likely to increase as fossil fuels become increasingly scarce and more expensive. Fossil fuels or mineral fuels are fossil source Fuels that is Hydrocarbons found within the top layer of the Earth’s crust.

See also

• Ethanol fuel in the United States
• Ethanol fuel in Australia
• Ethanol fuel in Sweden
• Ethanol fuel in the Philippines
• Common ethanol fuel mixtures
• Flexible-fuel vehicle
• List of renewable energy topics by country

References

External links

• World Bank, Biofuels: The Promise and the Risks. World Development Report 2008: Agriculture for Development
• Cogeneration in Ethanol Plants by P. M. Nastari
• CDM Potential in Brazil, by S. Meyers, J. Sathaye et al.
• UNICA - Brazilian Sugarcane growers assoc. (in Portuguese) and its machine translation
• BBC News video segment on ethanol in Brazil
• Structure, Players in Brazil Ethanol and BioFuels
• Biofuelwatch on Ethanol in Brazil
• Future of Brazil Ethanol, BioFuel Industry
• Surveys of Brazil Ethanol and BioFuels
• Brazil priming ethanol initiative to supply fuel-thirsty Japan
• CNBC's Yergin: What the U.S. Can Learn From Brazil About Ethanol By CNBC.com|07 Jun 2007|12:33 PM ET
• Brazil Institute: Biofuels Central.WWICS