Biomass Spotlight: Brazil
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| Brazil began developing its biomass sector in the early 1970's. Since that time, Brazil has made major strides in developing its biomass program and is emerging as a world leader in renewable energy. As of result of Brazil's accomplishments in the biomass field, particularly in developing ethanol from sugarcane, many countries, including the U.S., are looking to Brazil for ideas on establishing a solid energy policy that secures future for energy and environment.
Spurred by the oil price fluctuations in the 1970s, Brazil's Pro-Ethanol Program provided subsidies to the sugar industry to produce excess sugar for the purpose of creating biofuels. Today the Brazilian biofuels sector is self-sufficient and profitable. Unlike the United States, where corn is used to produce most biofuels, Brazil relies on its most abundant crop, sugarcane. As of 2001, biofuels production accounted for almost half of the total use of sugarcane in Brazil. Most of the sugarcane production occurs in the southwest region of the country, as does the majority of ethanol production (Exhibit 1).
Exhibit 1. Brazil: Sugar Cane Growing Areas
Brazil's federal government requires that all gasoline sold in the country contain 20-26% ethanol. However, most pumps in Brazil offer pure ethanol as a choice for consumers. This policy, among several other factors, is the reason why 40% of the country's gasoline consumption has already been replaced by ethanol. In addition to ethanol, Brazil's government is also expanding its focus to biodiesel. A federal mandate requires that by 2008, every liter of diesel fuel sold in Brazil must contain 2 percent biodiesel. By 2013, the percentage must increase to 5 percent. This is an important move because diesel fuel represents over half of the fuel consumption in Brazil. Clearly, government leadership has played a critical role in continuing the growth of the biofuels sector in Brazil.
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1Carmen Gentile, Brazil Leads Latin America's Biofuel Future, ISN Security Watch, http://www.isn.ethz.ch, 09/15/06.
2 Ibid
3 Ibid
4 Christine Bolling and Nydia R. Suarez, USDA Economic Research Service, The Brazilian Sugar Industry: Recent Developments, Sugar and Sweetener Situation and Outlook, September 2001. Page 17. (PDF 53.8KB)
5 Ibid p.15.
6 Jakob Lagercrantz, Ethanol Production from Sugarcane in Brazil, March 2006. Page 9. (PDF 1.49MB)
7 Monte Reel, Brazil's Successful Ethanol Program Fuels U.S. Interest, Miami Herald Online, 8/21/06. http://www.miami.com/mld/miamiherald/news/
8 Ibid
9 Marla Dickerson, Farmers' Hopes Sprout as Brazil Bets on Biodiesel, L.A. Times Online, 09/19/06. http://www.latimes.com/business/
10 Ibid
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