A First: More Ethanol than Gas Sold in Brazil
Drivers bought more unblended sugar cane ethanol than gas in Brazil in 2008, marking a first in ethanol history.
Brazil’s National Petroleum Agency reported this week that ethanol sales topped gas sales for the first time ever last year. The record reflects a major upswell in ethanol sales in Brazil over the past year, up 44.9 % over 2007.
Cane ethanol sells for half the price of fossil fuel gasoline in Brazil, giving drivers ample incentive to fuel up with the domestically produced cane ethanol. Currently, Brazilians pay around US$2.38/gallon at the pump for ethanol compared with US$4.05 for gasoline.
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Brazil produces the world’s greatest supply of ethanol from sugar cane, although the United States produces still more from corn. Consequently, nine out of ten cars in Brazil can run on either gas or ethanol or any combination of the two. In addition to fueling its own fleets, Brazil also exports billions of liters of sugar cane ethanol to Europe and the United States.
Source: AFP via Biofuels Digest
You posted this story yesterday? Gas is below $2 a gallon in much of the United States.
Louisiana Enacts the Most Comprehensive Advanced Biofuel Legislation in the Nation
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Advanced Biofuel Industry Development Initiative Benefits Consumers, Farmers and Gas Station Owners with Localized “Field-to-Pump” Strategy
Governor Bobby Jindal has signed into law the Advanced Biofuel Industry Development Initiative, the most comprehensive and far-reaching state legislation in the nation enacted to develop a statewide advanced biofuel industry. Louisiana is the first state to enact alternative transportation fuel legislation that includes a variable blending pump pilot program and a hydrous ethanol pilot program.
Field-to-Pump Strategy
The legislature found that the proper development of an advanced biofuel industry in Louisiana requires implementation of the following comprehensive “field-to-pump” strategy developed by Renergie, Inc.:
(1) Feedstock Other Than Corn
(a) derived solely from Louisiana harvested crops;
(b) capable of an annual yield of at least 600 gallons of ethanol per acre;
(c) requiring no more than one-half of the water required to grow corn;
(d) tolerant to high temperature and waterlogging;
(e) resistant to drought and saline-alkaline soils;
(f) capable of being grown in marginal soils, ranging from heavy clay to light sand;
(g) requiring no more than one-third of the nitrogen required to grow corn, thereby reducing the risk of contamination of the waters of the state; and
(h) requiring no more than one-half of the energy necessary to convert corn into ethanol.
(2) Decentralized Network of Small Advanced Biofuel Manufacturing Facilities
Smaller is better. The distributed nature of a small advanced biofuel manufacturing facility network reduces feedstock supply risk, does not burden local water supplies and provides for broader based economic development. Each advanced biofuel manufacturing facility operating in Louisiana will produce no less than 5 million gallons of advanced biofuel per year and no more than 15 million gallons of advanced biofuel per year.
(3) Market Expansion
Advanced biofuel supply and demand shall be expanded beyond the 10% blend market by blending fuel-grade anhydrous ethanol with gasoline at the gas station pump. Variable blending pumps, directly installed and operated at local gas stations by a qualified small advanced biofuel manufacturing facility, shall offer the consumer a less expensive substitute for unleaded gasoline in the form of E10, E20, E30 and E85.
Pilot Programs
(1) Advanced Biofuel Variable Blending Pumps - The blending of fuels with advanced biofuel percentages between 10 percent and 85 percent will be permitted on a trial basis until January 1, 2012. During this period the Louisiana Department of Agriculture and Forestry Division of Weights & Measures will monitor the equipment used to dispense the ethanol blends to ascertain that the equipment is suitable and capable of producing an accurate measurement.
(2) Hydrous Ethanol - The use of hydrous ethanol blends of E10, E20, E30 and E85 in motor vehicles specifically selected for test purposes will be permitted on a trial basis until January 1, 2012. During this period the Louisiana Department of Agriculture and Forestry Division of Weights & Measures will monitor the performance of the motor vehicles. The hydrous blends will be tested for blend optimization with respect to fuel consumption and engine emissions. Preliminary tests conducted in Europe have proven that the use of hydrous ethanol, which eliminates the need for the hydrous-to-anhydrous dehydration processing step, results in an energy savings of between ten percent and forty-five percent during processing, a four percent product volume increase, higher mileage per gallon, a cleaner engine interior, and a reduction in greenhouse gas emissions.
Act No. 382, entitled “The Advanced Biofuel Industry Development Initiative,” was co-authored by 27 members of the Legislature. The original bill was drafted by Renergie, Inc. Representative Jonathan W. Perry (R - District 47), with the support of Senator Nick Gautreaux (D - District 26), was the primary author of the bill. Reflecting on the signing of Act No. 382 into law, Brian J. Donovan, CEO of Renergie, Inc. said, “I am pleased that the legislature and governor of the great State of Louisiana have chosen to lead the nation in moving ethanol beyond being just a blending component in gasoline to a fuel that is more economical, cleaner, renewable, and more efficient than unleaded gasoline. The two pilot programs, providing for an advanced biofuel variable blending pump trial and a hydrous ethanol trial, established by the State of Louisiana should be adopted by each and every state in our country.”
State Agencies Must Purchase or Lease Vehicles That Use Alternative Fuels
Louisiana’s Advanced Biofuel Industry Development Initiative further states, “The commissioner of administration shall not purchase or lease any motor vehicle for use by any state agency unless that vehicle is capable of and equipped for using an alternative fuel that results in lower emissions of oxides of nitrogen, volatile organic compounds, carbon monoxide, or particulates or any combination thereof that meet or exceed federal Clean Air Act standards.”
Advanced Biofuel Price Preference for State Agencies
Louisiana’s Advanced Biofuel Industry Development Initiative provides that a governmental body, state educational institution, or instrumentality of the state that performs essential governmental functions on a statewide or local basis is entitled to purchase E20, E30 or E85 advanced biofuel at a price equal to fifteen percent (15%) less per gallon than the price of unleaded gasoline for use in any motor vehicle.
Economic Benefits
The development of an advanced biofuel industry will help rebuild the local and regional economies devastated as a result of hurricanes Katrina and Rita by providing:
(1) increased value to the feedstock crops which will benefit local farmers and provide more revenue to the local community;
(2) increased investments in plants and equipment which will stimulate the local economy by providing construction jobs initially and the chance for full-time employment after the plant is completed;
(3) secondary employment as associated industries develop due to plant co-products becoming available at a competitive price; and
(4) increased local and state revenues collected from plant operations will stimulate local and state tax revenues and provide funds for improvements to the community and to the region.
“Representative Perry and Senator Gautreaux have worked tirelessly to craft comprehensive advanced biofuel legislation which will maximize rural development, benefit consumers, farmers and gas station owners while also protecting the environment and reducing the burden on local water supplies,” said Donovan. “Representative Perry, Senator Gautreaux, and Dr. Strain, Commissioner of the Louisiana Department of Agriculture and Forestry, should be praised for their leadership on this issue.”
About Renergie
Renergie was formed by Ms. Meaghan M. Donovan on March 22, 2006 for the purpose of raising capital to develop, construct, own and operate a network of ten ethanol plants in the parishes of the State of Louisiana which were devastated by hurricanes Katrina and Rita. Each ethanol plant will have a production capacity of five million gallons per year (5 MGY) of fuel-grade ethanol. Renergie’s “field-to-pump” strategy is to produce non-corn ethanol locally and directly market non-corn ethanol locally. On February 26, 2008, Renergie was one of 8 recipients, selected from 139 grant applicants, to share $12.5 million from the Florida Department of Environmental Protection’s Renewable Energy Technologies Grants Program. Renergie received $1,500,483 (partial funding) in grant money to design and build Florida’s first ethanol plant capable of producing fuel-grade ethanol solely from sweet sorghum juice. On April 2, 2008, Enterprise Florida, Inc., the state’s economic development organization, selected Renergie as one of Florida’s most innovative technology companies in the alternative energy sector. By blending fuel-grade ethanol with gasoline at the gas station pump, Renergie will offer the consumer a fuel that is more economical, cleaner, renewable, and more efficient than unleaded gasoline. Moreover, the Renergie project will mark the first time that Louisiana farmers will share in the profits realized from the sale of value-added products made from their crops.
Please feel free to visit Renergie’s weblog (www.renergie.wordpress.com) for more information.
Pretty exciting news… hopefully alternative fuels are just on the start of their upswing.
Americans prefer to blame the World for not offering cheap oil for them. You have spent a precious time just debating the floating oil proces instead of discussing a change in American exaggerated driving habits. It’s about time to analyse the situation from the demand side in order to get the problems solved in the future.
We rarely see American urban populations demanding improvements in public transportation. The list of the 10 best sold cars in America is basicaly a list of small trucks, none of these vehicles can be considered a compact car. You have been overspending fuel to move in their overcrowded cities, and that’s not reasonable even in a prosperous society like yours. You Americans could do a lot yourselves to solve the crisis, just by adapting your driving habits.
I will take this opportunity to propose some words about bio-fuels. As rising food prices continue to threaten food security around the world, one obvious solution is being largely ignored: Brazilian ethanol. Brazil started to create this real fuel alternative since the first oil crisis hit the world in the 70s. Now Brazilian drive small or medium sized cars moved by ethanol or gasoline mixed in any proportion and internal consumption of ethanol in the country is already superior to gasoline’s. Brazilian ethanol is produced from sugarcane without any governmental subsidies and the fuel has a very competitive price. Researchers are increasing the productivity of ethanol year after year (more fuel extracted per square kilometer of sugarcane crops). They adapted sugar canes species to each type of land and topography so the productivity now is more than 3 times the records of 30 years ago. And the productivity keeps on rising and is expected to soar very soon when the technology to extract ethanol from cellulosic materials (crop waste) will be available for large scale production. Brazil could expand its sugarcane fields without disturbing sensitive land areas by tapping land such as depleted pastures. Just raising intensity of cattle production from the current 0.8 animals per hectare to 1.2 animals (a target already far exceeded in many parts of the country) would release about 80m hectares of land for crops. There remains plenty of room for expansion: the country has about 7m hectares of land under sugarcane, of which about 3m hectares is used for ethanol, compared to 200m hectares of pasture, about 21m hectares of soya and 14m hectares of maize.
And a more persuasive fact for incentive ethanol production in Brazil is the electric energy that is generated as a by-product of ethanol processing: taking into consideration the energetic balance, the electricity generated in sugar cane processing in Brazil is almost as large as its fuel equivalent. It’s like a two large scale hydroelectric plants generating electricity exactly when it’s more necessary: in the Brazilian dry season! So the Brazilian producers of ethanol are also having soaring revenues by selling electricity to the country’s national electric system! It’s become an strategic source of electricity, so it’s a win-win game for the country and for the farmers.
Off course Brazilian ethanol would never concur with petroleum, but it could ease the current oil crisis by supplying a small part of the world energy demand. It could be an good alternative to the highly non-efficient corn based American ethanol. The problem is that much of Brazil’s ethanol exports continues to face prohibitive tariffs and other barriers to developed markets in the US and Europe. America keep its market closed to alternative fuels at the same time blames the world for not supplying then with more tax-free oil. The developed world appears purposely myopic in relation to the opportunities Brazil presents, maybe it’s because that would upset wealthy US and European farmers – a price apparently not worth paying.
But my main point with this letter is to propose you Americans the following question: if a developing country like Brazil could create an efficient energy alternative, why should not Americans do the same instead of just waiting the world increase oil production?
My best regards,
Almir R. Américo (almiramerico@gmail.com)
There is an impressive amount of alternative fuel research being conducted here in the San Francisco Bay Area, much of which I have been able to listen to on KQED Radio’s Quest program. It is indeed very encouraging to be reminded about both the movement away from crude oil and other fossil fuels, while both governments and industry increase research and development of ethanol creation as well as biofuels beyond ethanol.
This is a tragedy. All this does is hike up the price of food, cause vast deforestation and causing more global warming through all the deforestation to make way for the vast fields of corn and sugar cane.
The real environmentally friendly way off oil is through the plug-in hybrid.
calcars.org
Thankfully, Brazilian Ethanol is energy & economically wise a viable alternative, unlike its corn based cousin.
@Gavin: thanks for the article - for info Brazilian ethanol contains roughly 2/3 the energy per gallon of gasoline (need 50% more of it to drive the same distance) therefore would need to retail at 2/3 the price to be competitive; at 1/2 the price per gallon it would offer a $/mile cost saving of 25%, still pretty good!
@Allison: think Gavin was referring to gasoline cost in Brazil around R$2.30/litre equivalent to $US4/gallon
@Brian: thanks for the highlighting this legislation
@almir: nicely written, will pm you
@zalmino: I am not sure the US midwest & SE Brazil have been deforested for ethanol production; perhaps you are referring to palm oil & maybe soy bean, somewhere else? plug in hybrids use electricity from the grid which is typically coal fired and hence produces at least as much CO2 as gasoline (Brazilian ethanol reduces lifecycle CO2 by ~85%) - PHEVs maybe cleaner with CCS or nuclear…
I live in Sao Paulo.
Firstly 9 of 10 cars are not dual use. MAYBE 1 in 20.
Yes, there are a lot of ethanol only cars here. They have been popular since the 1980’s.
Also, everyone I know that has a “flex” auto, uses just gasoline. The reason: 1) better performance, 2) you don’t need to stop and refill as often.
So even though gasoline is x2 the price it’s equal in mileage.
I’ve seen a very interesting article comparing the Brazilian and American ethanol programs in the link below:
http://www.cattlenetwork.com/Content.asp?ContentID=281882