Ethanol, also known as ethyl alcohol or grain alcohol, is often found in alcoholic beverages. However, by far the largest single use of ethanol is as a motor fuel or fuel additive.
In most countries automobile fuel consists of 90% gasoline and 10% ethanol (a mix sometimes called gasohol). In Brazil, many motorists run their vehicles on pure ethanol processed from sugar cane.
Brazil produces 5 billion gallons of ethanol annually, which would satisfy about 40% of America's and almost all of Japan's imported fuel needs.
The U.S. is following Brazil's success story with keen interest, and has made progress of its own. There are already 6 million vehicles in America that can run on a blend of 85% ethanol and 15% gasoline. As well, by 2007 all Indy Racing cars will race on 100% ethanol.
President Bush mentioned ethanol in his 2006 State of the Union Address, stating that he wants to double the use of renewable fuel by 2012.
Other countries also want to reduce their dependence on Middle Eastern oil. In India, the government subsidizes ethanol production from sugar and plans to increase the use of ethanol from 5% to 20% in a decade. Thailand offers tax breaks for ethanol production, while the European Union has mandated that fuels must contain 5.75% alternative ingredients like ethanol by 2010.
Ethyl Alcohol Advantages
Ethanol can be distilled from sugar cane or corn which are above-ground energy sources that do not require expensive and time-consuming exploration, well-construction and drilling, and product refinement.
Other advantages include the fact that ethanol:
- Can be produced for $30 a barrel;
- Costs about half as much as gasoline; and,
- Burns cleaner than gasoline.
And The Winner Is...
Brazil has evolved into an energy-independent country; the largest economy in South America no longer imports any oil from the rest of the world. Brazil's vast expanse of fertile soil and lack of accessible oil continue to drive its leadership in producing ethanol fuel.
Not that it was easy.
The Brazilian government spearheaded the introduction of ethanol, spurred on by heavy import bills from the first global oil shortage in 1970s.
Brazil's military regime ensured that:
- Sugar companies were granted discount-rate loans to build ethanol plants with subsidized product prices;
- Car manufacturers received tax breaks to put ethanol-powered vehicles in their showrooms; and,
- Ethanol was available at filling stations.
In the early 2000s Brazilian exports of ethanol experienced a major boost in demand from China and India as fuel additives.
By 2005, Brazil's government had nurtured the development of "flexible fuel cars" that can use gasoline or ethanol. Today five major carmakers in Brazil manufacture flex fuel cars, which account for 75% of new cars made in Brazil each year.
So why haven't major oil importing countries followed Brazil's lead in a bigger way?
Rather that sugar cane, the U.S. produces ethanol from corn. Corn-based ethanol produces much less energy than sugar, so the mileage from corn ethanol is limited. The U.S. government protects its domestic corn farmers through subsidies, and also imposes hefty import duties on Brazilian ethanol exporters so corn ethanol is not as cost-effective. Another consideration is the limited amount of farmland that can be devoted to ethanol-producing crops in the U.S., especially when compared to Brazil's agriculture-based economy.
Consequently the most optimistic analysts forecast that in ten years ethanol fuel programs will be implemented worldwide. But it won't be until 2050 - at the earliest - when ethanol can substantially replace oil in world trade. Unless, of course, other governments and private industries show the same initiative and commitment to the "green fuel" as Brazil.
