The EmbassyBiofuels
The growing demand for energy in the emerging economies has been exerting great pressure on the world’s existing petroleum extraction installed capacity. Therefore, the high costs of fossil fuels in international markets are not expected to return to much lower levels any time soon. Thus, the concern over energy issues is the order of the day and the search for alternatives to fossil fuels has taken on a prominent role both in countries’ decision-making processes and in their public policies in the energy area.
Brazil has a great deal to contribute to this discussion, since it has accumulated important know-how in the biofuels area, particularly regarding the use of ethanol as an automotive fuel. The Brazilian energy mix is one of the cleanest in the world and currently more than 45 percent of all energy consumed in Brazil comes from renewable sources, whereas the average share of renewable sources in the energy mix of all developed countries is about 10 percent. This constitutes a clear advantage in terms of where Brazil stands in the current situation, in which concerns over energy security and the environment have led various countries to seek alternatives to fossil fuels while making efforts to implement initiatives to reduce their greenhouse gas emissions.
The Use of Ethanol Fuel in Brazil
The Brazilian experience with the use of ethanol fuel as a gasoline additive dates back to the 1920s. However, it was only in 1931 that fuel produced from sugar cane began to be officially blended with gasoline, which at that time was imported. Despite these early initiatives, however, it was only in 1975, with the launching of the National Ethanol Program (ProAlcool), that the Brazilian government created the necessary conditions for the sugar and ethanol industry to become, three decades later, one of the most modern in the world, having achieved significant results from both environmental and economic perspectives. Over the last 30 years, the use of ethanol as a substitute for gasoline has accounted for savings of over one billion barrels of oil equivalent, which corresponds to about 22 months of Brazil’s current oil production. Over the last eight years, the use of ethanol produced savings in oil imports of US$ 61 billion, which is currently the total amount of the Brazilian external public debt.
The National Biodiesel Program
Biodiesel is a biodegradable fuel derived from renewable sources, such as vegetable oils and animal fats. Brazil is home to several species of oilseeds, with which one can produce biodiesel, among them castor beans, African oil palm, sunflowers, babaçú coconut oilseeds, soybeans and cotton. This fuel completely or partially replaces fossil diesel fuel in the engines of trucks, tractors, light trucks, automobiles and can also be used to generate power and heat. In addition, it can be used as a fuel, or added to diesel in various proportions. Using biodiesel brings environmental benefits and contributes to improving the air quality in major urban centers as a result of the decrease in polluting emissions.
Prospects for Biofuels
Biofuels is a priority issue on the agenda of the principal actors in the international arena. The topic has gained strategic significance, driven by the rise in oil prices, by the prospect that those prices will remain high, due to the demand from major countries, such as China, India and the United States, and by concern over ensuring supply, due to political instability in the main fossil-fuel-producing regions of the world.