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2007 Fiat Siena ethanol-gas vehicle (spectrum.ieee.org).
During the 1970s, Brazil was importing over 80 percent of the oil it consumed, analogous to the U.S even until now. Large oil imports and high oil prices were damaging Brazil’s economy; thus, in 1975 Brazil implemented the National Alcohol Program. It focused on four policies to accelerate ethanol production:
1) It required Petrobras, its major oil company, to purchase a pre-set amount of ethanol.
2) It provided $4.9 billion of low-interest loans to stimulate ethanol manufacturing.
3) It offered subsidies so that ethanol’s pump price was 41 percent lower than the price of gasoline.
4) It required that all fuels be blended with at least 22 percent ethanol (E22).
Even though crude oil prices were intermittently low in the 1980s and 90s, Brazil maintained its ethanol program in contrast to America’s cyclical emphasis on renewable energy and fuel efficiency standards, depending on the price of oil. In 2000, Brazil deregulated the ethanol market and removed its subsidies, but the ethanol mandate was continued. Depending on market conditions, all fuels were required to be blended with 20 to 25 percent ethanol. Currently, the mandate is 25 percent ethanol in gasoline, which was approved on June 1, 2007.
According to Petrobras CFO Almir Barbassa, ethanol now powers more than 50% of all the light vehicles in the nation. In addition, Petrobras predicts that by 2020 the gasoline market for light vehicles will contract by 17% and that sugar cane based ethanol will fuel 75% of all light vehicles. This company spokesman has cited improvements in production processes, which have allowed ethanol to be priced 40% cheaper than gasoline, as the reason for its competitiveness. Flex-fuel cars that can handle both ethanol and gasoline constitute 90% of the new car sales in Brazil, which will drive the market. A recent study in Biofuels Digest states that ethanol reduces liquid fossil fuel demand by slightly less than 2% globally.
Regardless of how one feels about ethanol, Brazil's determination and commitment to generating a Green economy and energy independence deserves some consideration.
See part II of my article later this week, on the comparison of Brazil’s ethanol auto industry with developments in the U.S.
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Comments
Excellent Article Brian
We are still at the chicken and egg stage in the US.
The United States needs to have someone actually make the decision to either allow higher blends which will force the Auto Industry to make more FFVs sooner than later ..OR .. Mandate the FFVs first (as Obama /Biden bother pledged they would do as candidates).
The Auto Industry has pledged 50% production of FFVs by 2012 and 80% by 2015. But would rather see an out right mandate so there is no backtracking.
The mandate would be a "green light" for retailers to install blender pumps(E0 , E10, E30, E50, E85) and E85 pumps . Hard to make that investment unless you know that the E85/ FFV vehicles will be coming off the line
There are now 2165 Total E85 Stations in the United States | 1545 Total Cities selling E85 in the United States
Source: E85Prices.com
If we can replace corn fields with sugar cane plantations than and only then could we entertain such a thought. Corn is a negative energy input for fuel only a complete fool (U.S. congress) could entertain suych special interest garbage. Does anyone find it funny that when O'bama announced higher CAFE standards (average MPG vehicles must meet) most of the auto industry applauded it? these are the same people who fought putting seat belts in cars. The reason is that our government is in lock step with their handlers (lobbyists). Automakers have a loophole from which to pass through which is known as "flex fuel vehicles" what the government has decreed in their simple minds is that E85 capable vehicles MPG is given credit for only the 15% gasoline contained in E85. Therefore a Hummer that is rated at 11 mpg that is E85 capable (regardless of whether they use it or not) is rated on the amount of gasoline (15%) used to travel the 10 miles. To reach the multiplier you divide 100% E85 by 15
Does anyone find it funny that when O'bama announced higher CAFE standards (average MPG vehicles must meet) most of the auto industry applauded it? these are the same people who fought putting seat belts in cars. The reason is that our government is in lock step with their handlers (lobbyists). Automakers have a loophole from which to pass through which is known as "flex fuel vehicles" what the government has decreed in their simple minds is that E85 capable vehicles MPG is given credit for only the 15% gasoline contained in E85. Therefore a Hummer that is rated at 11 mpg that is E85 capable (regardless of whether they use it or not) is rated on the amount of gasoline (15%) used to travel the 10 miles. To reach the multiplier you divide 100% E85 by 15 (gasoline) and you get a multiplier of 6.66% (Ironic eh?) so that gas guzzler is shown as getting 67 mpg allowing the automakers to pretend
It's a shame that he missed the opportunity to force the automakers to make all new cars E85 FFV's. Brazil reduced its Carbon Footprint 90% by going to FFV's and Ethanol. And all Obama wants to do is put us in these battery operated clown cars. He is just not up to the job. He has become a brainwashed Liberal and does not embrace any idea that might work because it is outside of Liberal thinking.
The best crop for energy and ethanol is sugarcane, this is the main crop in Brazil.
Luis Conty
Agricultural Economist MS
The usual rah-rah about Brazil, which misses the point. Brazil did not set up the National Alcohol Program to become "green". It set it up to rescue its sugar industry, beleagured by low sugar prices. Forcing ethanol on the economy was a neat way to provide an alternative product for its sugar refineries. It also satisfied those in government who favored import-substitution -- in this case for oil. Now that it has discovered oil, it is certainly happy to sell that to the rest of the world, to boot!
That so much of its electricity comes from hydro-electricity is also not something it set out consciously to do. Point to one relatively sparsely populated industrialized or industrializing country that is not pancake flat and receives ample rain that DOESN'T obtain most of its electricity from CHEAP hydro-electric power. Think Canada, Lesotho, Switzerland, Norway, New Zealand ...
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