Ethanol fuel in Brazil
Brazil is the world's second largest producer of ethanol fuel. Brazil and the United States have led the industrial production of ethanol fuel for several years, together accounting for 85 percent of the world's production in 2017. Brazil produced 26.72 billion liters (7.06 billion U.S. liquid gallons), representing 26.1 percent of the world's total ethanol used as fuel in 2017.[1]
Between 2006 and 2008, Brazil was considered to have the world's first "sustainable"
Brazil's 40-year-old ethanol fuel program is based on the most efficient agricultural technology for sugarcane cultivation in the world,
There are no longer any light vehicles in Brazil running on pure gasoline. Since 1976 the government made it mandatory to blend
The Brazilian car manufacturing industry developed
The success of "flex" vehicles, together with the mandatory E25 blend throughout the country, allowed ethanol fuel consumption in the country to achieve a 50% market share of the gasoline-powered fleet in February 2008.[28][29] In terms of energy equivalent, sugarcane ethanol represented 17.6% of the country's total energy consumption by the transport sector in 2008.[30]
History
Historical evolution of ethanol blends used in Brazil (1976–2015) | |||||
---|---|---|---|---|---|
Year | Ethanol blend |
Year | Ethanol blend |
Year | Ethanol blend |
1931 | E5 |
1989 | E18–22–13 |
2004 | E20
|
1976 | E11 |
1992 | E13 |
2005 | E22
|
1977 | E10 |
1993–98 | E22 |
2006 | E20
|
1978 | E18–20–23 |
1999 | E24 |
2007[14][16] | E23-25
|
1981 | E20–12–20 |
2000 | E20 |
2008[16] | E25
|
1982 | E15 |
2001 | E22 |
2009 | E25
|
1984–86 | E20 |
2002 | E24–25 |
2010 | E20–25[31]
|
1987–88 | E22 |
2003 | E20–25 |
2011 | E18–25[17]
|
2015 | E27[18]
| ||||
Source: J.A. Puerto Rica (2007), Table 3.8, pp. 81–82[14] Note: The 2010 reduction from E25 to E20 was temporary and took place between February and April.[31] In April 2011 the lower blend floor was reduced to E18.[17] |
The first phase of the program concentrated on production of anhydrous ethanol for
Since July 2007 the mandatory blend is 25% of anhydrous ethanol and 75% gasoline or E25 blend.[16] However, in 2010, and as a result of supply concerns and high ethanol fuel prices, the government mandated a temporary 90-day blend reduction from E25 to E20 beginning February 1, 2010.[31][39] By mid March 2015 the government raised temporarily the ethanol blend in regular gasoline from 25% to 27%. The blend on premium gasoline was kept at 25% upon request by ANFAVEA, the Brazilian association of automakers, because of concerns about the effects on the higher blend on cars that were built for E25, as opposed to flex-fuel cars.[18] The government approved the higher blend as an economic incentive for ethanol producers, due to an existing overstock of over 1 billion liters (264 million US gallons) of ethanol. The implementation of E27 is expected to allow the consumption of the overstock before the end of 2015.[40]
After testing in government fleets with several prototypes developed by the local carmakers, and compelled by the
After reaching more than 4 million cars and light trucks running on pure ethanol by the late 1980s,
Confidence on ethanol-powered vehicles was restored only with the introduction in the Brazilian market of
Flexible fuel cars were 22% of the car sales in 2004, 73% in 2005,[53] 87.6% in July 2008,[54] and reached a record 94% in August 2009.[55] The cumulative production of flex-fuel cars and light commercial vehicles reached the milestone of 10 million vehicles in March 2010,[23][24] and 15 million in January 2012.[56] Registrations of flex-fuel cars and light trucks represented 87.0% of all passenger and light duty vehicles sold in the country in 2012.[57] Production passed the 20 million-unit mark in June 2013.[25] By the end of 2014, flex-fuel cars represented 54% of the Brazilian registered stock of light-duty vehicles, while gasoline only vehicles represented 34.3%.[58] As of June 2015[update], flex-fuel light-duty vehicle cumulative sales totaled 25.5 million units.[26]
The rapid adoption and commercial success of "flex" vehicles, as they are popularly known, together with the mandatory blend of alcohol with gasoline as
Under the auspices of the BioEthanol for Sustainable Transport (BEST) project, the first ethanol-powered (ED95) bus began operations in São Paulo city in December 2007 as a one-year trial project.[60][61][62] A second ED95 trial bus began operating in São Paulo city in November 2009.[63] Based on the satisfactory results obtained during the 3-year trial operation of the two buses, in November 2010 the municipal government of
Another innovation of the Brazilian flexible-fuel technology was the development of flex-fuel
Production
Economic and production indicators
Brazilian ethanol production(a)(b) 2004–2019[1][80][81][82][83][84] (Millions of U.S. gallons) | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 |
3,989 | 4,227 | 4,491 | 5,019 | 6,472 | 6,578 | 6,922 | 5,573 | 5,577 | 6,267 | 6,760 | 7,200 | 6,750 | 6,650 | 7,990 | 8,590 | 7,930 |
Note: (a) 2004–06 for all grades. (b) 2007–10 & 2014-20 ethanol fuel only.[83][84] |
Ethanol production in Brazil uses sugarcane as
There were 378 ethanol plants operating in Brazil by July 2008, 126 dedicated to ethanol production and 252 producing both sugar and ethanol. There are 15 additional plants dedicated exclusively to sugar production.
Ethanol production is concentrated in the
For the 2008/09 harvest it is expected that about 44% of the sugarcane will be used for sugar, 1% for
As sugar and ethanol share the same feedstock and their industrial processing is fully integrated, formal employment statistics are usually presented together. In 2000 there were 642,848 workers employed by these industries, and as ethanol production expanded, by 2005 there were 982,604 workers employed in the sugarcane cultivation and industrialization, including 414,668 workers in the sugarcane fields, 439,573 workers in the sugar mills, and 128,363 workers in the ethanol distilleries.[90] While employment in the ethanol distilleries grew 88.4% from 2000 to 2005, employment in the sugar fields just grew 16.2% as a direct result of expansion of mechanical harvest instead manual harvesting, which avoids burning the sugarcane fields before manual cutting and also increases productivity. The states with the most employment in 2005 were São Paulo (39.2%), Pernambuco (15%), Alagoas (14.1%), Paraná (7%), and Minas Gerais (5.6%).[90]
2009–2014 crisis
Since 2009 the Brazilian ethanol industry has experienced a crisis due to multiple causes. They include the
A supply shortage took place for several months during 2010 and 2011, and prices climbed to the point that ethanol fuel was no longer attractive for owners of flex-fuel vehicles; the government reduced the minimum ethanol blend in gasoline to reduce demand and keep ethanol fuel prices from rising further; and for the first time since the 1990s, (corn) ethanol fuel was imported from the United States.[91][92][93] The imports totaled around 1.5 billion litres in 2011–2012. The ethanol share in the transport fuel market decreased from 55% in 2008 to 35% in 2012.[94] As a result of higher ethanol prices combined with government subsidies to keep gasoline price lower than the international market value, by November 2013 only 23% flex-fuel car owners were using ethanol regularly, down from 66% in 2009.[95]
During 2014 Brazil produced 23.4 billion liters (6.19 billion U.S. liquid gallons) of ethanol fuel, however, during that year Brazil imported ethanol from the United States, ranking as the second largest U.S. export market in 2014 after Canada, and representing about 13% of total American exports.[96][80] Production recovered since 2015, and Brazil produced 26.72 billion liters (7.06 billion U.S. liquid gallons) in 2017, representing 26.1 percent of the world's total ethanol used as fuel.[1]
Agricultural technology
A key aspect for the development of the ethanol industry in Brazil was the investment in agricultural
Biotechnology research and genetic improvement have led to the development of strains that are more resistant to disease, bacteria, and pests, and also have the capacity to respond to different environments, thus allowing the expansion of sugarcane cultivation to areas previously considered inadequate for such cultures.
Also, there is ongoing research regarding sugarcane biological nitrogen fixation, with the most promising plant varieties showing yields three times the national average in soils of very low fertility, thus avoiding nitrogenous fertilization.[102] There is also research for the development of second-generation or cellulosic ethanol.[10] In São Paulo state an increase of 12% in sugar cane yield and 6.4% in sugar content is expected over the next decade. This advance combined with an expected 6.2% improvement in fermentation efficiency and 2% in sugar extraction, may increase ethanol yields by 29%, raising average ethanol productivity to 9,000 liters/ha.[85] Approximately US$50 million has recently been allocated for research and projects focused on advancing the obtention of ethanol from sugarcane in São Paulo state.[103]
Production process
]Milling and refining
Once harvested, sugarcane is usually transported to the plant by semi-trailer trucks. After quality control, sugarcane is washed, chopped, and shredded by revolving knives; the feedstock is fed to and extracted by a set of mill combinations to collect a juice, called garapa in Brazil, that contain 10–15% sucrose, and bagasse, the fiber residue. The main objective of the milling process is to extract the largest possible amount of sucrose from the cane, and a secondary but important objective is the production of bagasse with a low moisture content as boiler fuel, as bagasse is burned for electricity generation (see below), allowing the plant to be self-sufficient in energy and to generate electricity for the local power grid.[104] The cane juice or garapa is then filtered and treated by chemicals and pasteurized. Before evaporation, the juice is filtered once again, producing vinasse, a fluid rich in organic compounds. The syrup resulting from evaporation is then precipitated by crystallization producing a mixture of clear crystals surrounded by molasses. A centrifuge is used to separate the sugar from molasses, and the crystals are washed by addition of steam, after which the crystals are dried by an airflow. Upon cooling, sugar crystallizes out of the syrup.[104] From this point, the sugar refining process continues to produce different grades of sugar, and the molasses continue a separate process to produce ethanol.[citation needed]
Fermentation, distillation and dehydration
The resulting molasses are treated to become a sterilized molasse free of impurities, ready to be fermented. In the
Electricity generation from bagasse
Since the early days, bagasse was burnt in the plant to provide the energy required for the industrial part of the process. Today, the Brazilian best practice uses high-pressure boilers that increases energy recovery, allowing most sugar-ethanol plants to be energetically self-sufficient and even sell surplus electricity to utilities.[85] By 2000, the total amount of sugarcane bagasse produced per year was 50 million tons/dry basis out of more than 300 million tons of harvested sugarcane. Several authors estimated a potential power generation from the use of sugarcane bagasse ranging from 1,000 to 9,000
According to a study commissioned by the Dutch government in 2006 to evaluate the sustainability of Brazilian bioethanol "there are also substantial gains possible in the efficiency of electricity use and generation: The electricity used for distillery operations has been estimated at 12.9 kWh/tonne cane, with a best available technology rate of 9.6 kWh/tonne cane. For electricity generation the efficiency could be increased from 18 kWh/tonne cane presently, to 29.1 kWh/tonne cane maximum. The production of surplus electricity could in theory be increased from 5.3 kWh/tonne cane to 19 kWh/tonne cane."[104]
Electric generation from ethanol
Brazil has several experimental programs for the production of electricity using sugar cane ethanol as fuel. A joint venture of General Electric and Petrobras is operating one commercial pilot plant in Juiz de Fora, Minas Gerais.[109]
Overall energy use
Energy-use associated with the production of sugarcane ethanol derives from three primary sources: the agricultural sector, the industrial sector, and the distribution sector. In the agricultural sector, 35.98 GJ of energy are used to plant, maintain, and harvest one hectare (10,000 m2) of sugarcane for usable biofuel. This includes energy from numerous inputs, including nitrogen, phosphate, potassium oxide, lime, seed, herbicides, insecticides, labor and diesel fuel. The industrial sector, which includes the milling and refining sugarcane and the production of ethanol fuel, uses 3.63 GJ of energy and generates 155.57 GJ of energy per hectare of sugarcane plantation. Scientists estimate that the potential power generated from the cogeneration of bagasse could range from 1,000 to 9,000 MW, depending on harvest and technology factors. In Brazil, this is about 3% of the total energy needed. The burning of bagasse can generate 18 kilowatt-hours, or 64.7 MJ per Mg of sugarcane. Distillery facilities require about 45 MJ to operate, leaving a surplus energy supply of 19.3 MJ, or 5.4 kWh. In terms of distribution, researchers calculates sugarcane ethanol's transport energy requirement to be 0.44 GJ per cubic-meter, thus one hectare of land would require 2.82 GJ of energy for successful transport and distribution. After taking all three sectors into account, the EROEI (Energy Return over Energy Invested) for sugarcane ethanol is about 8.[110]
There are several improvements to the industrial processes, such as adopting a hydrolysis process to produce ethanol instead of surplus electricity, or the use of advanced boiler and turbine technology to increase the electricity yield, or a higher use of excess bagasse and harvest trash currently left behind in the fields, that together with various other efficiency improvements in sugarcane farming and the distribution chain have the potential to allow further efficiency increases, translating into higher yields, lower production costs, and also further improvements in the energy balance and the reduction of greenhouse gas emissions.[104]
Exports
Brazilian ethanol exports
by selected country and region (2005–2007) liters ) | ||||||
---|---|---|---|---|---|---|
Country/Region(1) | 2007 | % | 2006 | % | 2005 | % |
United States(2) | 932.75 | 26.4 | 1,777.43 | 51.9 | 270.97 | 10.5 |
910.29 | 25.8 | 530.55 | 15.5 | 554.15 | 21.4 | |
Jamaica | 308.97 | 131.54 | 133.39 | |||
El Salvador | 224.40 | 181.14 | 157.85 | |||
Costa Rica | 170.37 | 91.26 | 126.69 | |||
Trinidad and Tobago | 158.87 | 71.58 | 36.12 | |||
Mexico | 42.21 | 50.24 | 100.10 | |||
European Union | 1,004.17 | 28.4 | 587.31 | 17.1 | 530.73 | 20.5 |
Netherlands | 808.56 | 346.61 | 259.40 | |||
Sweden | 116.47 | 204.61 | 245.89 | |||
Japan | 364.00 | 10.3 | 225.40 | 6.6 | 315.39 | 12.2 |
Nigeria | 122.88 | 42.68 | 118.44 | |||
Republic of Korea | 66.69 | 92.27 | 216.36 | |||
India | 0 | 10.07 | 410.76 | 15.8 | ||
Total world exports |
3,532.67 | 100 | 3,426.86 | 100 | 2,592.29 | 100 |
Notes: (1)Only countries with more than 100,000 liters imports on a given year are shown. (2)It includes exports to Puerto Rico and U.S. Virgin Islands. (3) Including Mexico that trades with the U.S. under the North American Free Trade Agreement (NAFTA). |
Brazil is the world's largest exporter of ethanol. In 2007 it exported 933.4 million gallons (3,532.7 million liters),[111][112] representing almost 20% of its production, and accounting for almost 50% of the global exports.[115] Since 2004 Brazilian exporters have as their main customers the United States, Netherlands, Japan, Sweden, Jamaica, El Salvador, Costa Rica, Trinidad and Tobago, Nigeria, Mexico, India, and South Korea.[115]
The countries in the
The U.S., potentially the largest market for Brazilian ethanol imports, currently imposes a tariff on Brazilian ethanol of US$0.54 per gallon in order to encourage domestic ethanol production and protect the budding ethanol industry in the United States.
A 2010 study by
After being renewed several times, the tax credit is set to expire on December 31, 2011, and both the US$0.54 per gallon tariff and US$0.45 per gallon blender's credit have been the subject of contentious debate in Washington, D.C., with ethanol interest groups and politicians staking positions on both sides of the issue.
As
Prices and effect on oil consumption
Most automobiles in Brazil run either on hydrous alcohol (
Due to the lower energy content of ethanol fuel, full flex-fuel vehicles get fewer miles per gallon. Ethanol price has to be between 25 and 30% cheaper per gallon to reach the break even point.[3] As a rule of thumb, Brazilian consumers are frequently advised by the media to use more alcohol than gasoline in their mix only when ethanol prices are 30% lower or more than gasoline, as ethanol price fluctuates heavily depending on the harvest yields and seasonal fluctuation of sugarcane harvest.[143][144]
Since 2005, ethanol prices have been very competitive without subsidies,
By 2008 consumption of ethanol fuel by the Brazilian fleet of light vehicles, as pure ethanol and in gasohol, is replacing gasoline at the rate of about 27,000 cubic meters per day, and by February 2008 the combined consumption of anhydrous and hydrated ethanol fuel surpassed 50 percent of the fuel that would be needed to run the light vehicle fleet on pure gasoline alone. Monthly consumption of anhydrous ethanol for the mandatory E25 blend, together with hydrous ethanol used by flex vehicles, reached 1.432 billion liters, while pure gasoline consumption was 1.411 billion liters.[28][29] Despite this volumetric parity, when expressed in terms of energy equivalent (toe), sugarcane ethanol represented 17.6 percent of the country's total energy consumption by the transport sector in 2008, while gasoline represented 23.3 percent and diesel 49.2 percent.[30]
For the first time since 2003 sales of hydrous ethanol fell in 2010, with a decrease of 8.5 percent as compared to 2009. Total consumption of both hydrous and anhydrous ethanol fell by 2.9 percent while gasoline consumption increased by 17.5 percent. Despite the reduction in ethanol consumption, total ethanol sales reached 22.2 billion liters while pure gasoline consumption was 22.7 billion liters, keeping the market share for each fuel close to 50 percent. The decrease in hydrous ethanol consumption was due mainly to high sugar prices in the international markets, which reached a 30-year high in 2010. This peak in sugar prices caused sugarcane processing plants to produce more sugar than ethanol, and as supply contracted, E100 prices increased to the point that several times during 2010 the price of hydrous ethanol was less than 30 percent cheaper than gasoline. Another factor that contributed to this shift was the increase sales of imported gasoline only vehicles that took place during 2010.[134][135][136]
State | Average retail price (R$/liter) |
Price spread E25 - E100 |
State | Average retail price (R$/liter) |
Price spread E25 - E100 |
State | Average retail price (R$/liter) |
Price spread E25 - E100 | ||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
E100 | E25 | (%) | E100 | E25 | (%) | E100 | E25 | (%) | ||||
Acre (AC) | 2.080 | 2.943 | 29.32 | Maranhão (MA) | 1.709 | 2.628 | 34.97 | Rio de Janeiro (RJ) | 1.676 | 2.531 | 33.78 | |
Alagoas (AL) | 1.844 | 2.766 | 33.33 | Mato Grosso (MT) | 1.452 | 2.677 | 45.76 | Rio Grande do Norte (RN) | 1.940 | 2.669 | 27.31 | |
Amapá (AP) | 2.246 | 2.686 | 16.38 | Mato Grosso do Sul (MS) | 1.683 | 2.676 | 37.11 | Rio Grande do Sul (RS) | 1.779 | 2.574 | 30.89 | |
Amazonas (AM) | 2.773 | 2.452 | 27.69 | Minas Gerais (MG) | 1.610 | 2.377 | 32.27 | Rondônia (RR) | 1.839 | 2.669 | 31.10 | |
Bahia (BA) | 1.630 | 2.522 | 35.37 | Pará (PA) | 2.120 | 2.772 | 23.52 | Roraima (RO) | 2.154 | 2.710 | 20.52 | |
Distrito Federal (DF) | 1.884 | 2.586 | 27.15 | Paraíba (PB) | 1.883 | 2.553 | 26.24 | Santa Catarina (SC) | 1.697 | 2.556 | 33.61 | |
Ceará (CE) | 1.768 | 2.510 | 29.56 | Paraná (PR) | 1.445 | 2.429 | 40.51 | São Paulo (SP) | 1.306 | 2.398 | 45.54 | |
Espírito Santo (ES) | 1.795 | 2.662 | 32.57 | Pernambuco (PE) | 1.700 | 2.573 | 33.93 | Sergipe (SE) | 1.888 | 2.518 | 25.02 | |
Goiás (GO) | 1.581 | 2.565 | 38.36 | Piauí (PI) | 1.927 | 2.655 | 27.42 | Tocantins (TO)
|
1.708 | 2.748 | 37.85 | |
Country average | 1.513 | 2.511 | 39.75 |
Source: Agência Nacional do Petróleo (ANP). Average retail prices for week of October 26, 2008, to November 1, 2008. |
Comparison with the United States
Brazil's sugar cane-based industry is more efficient than the U.S. corn-based industry. Sugar cane ethanol has an energy balance seven times greater than ethanol produced from corn.[2] Brazilian distillers are able to produce ethanol for 22 cents per liter, compared with the 30 cents per liter for corn-based ethanol.[151] U.S. corn-derived ethanol costs 30% more because the corn starch must first be converted to sugar before being distilled into alcohol.[106] Despite this cost differential in production, the U.S. did not import more Brazilian ethanol because of U.S. trade barriers corresponding to a tariff of 54-cent per gallon, first imposed in 1980, but kept to offset the 45-cent per gallon blender's federal tax credit that is applied to ethanol no matter its country of origin.[4][119][120][121] In 2011 the U.S. Congress decided not to extend the tariff and the tax credit, and as a result both ended on December 31, 2011. During these three decades the ethanol industry was awarded an estimated US$45 billion in subsidies and US$6 billion just in 2011.[152][153]
Sugarcane cultivation requires a tropical or subtropical climate, with a minimum of 600 mm (24 in) of annual rainfall. Sugarcane is one of the most efficient photosynthesizers in the plant kingdom, able to convert up to 2% of incident solar energy into biomass. Sugarcane production in the United States occurs in Florida, Louisiana, Hawaii, and Texas. The first three plants to produce sugarcane-based ethanol are expected to go online in Louisiana by mid-2009. Sugar mill plants in Lacassine, St. James and Bunkie were converted to sugar cane-based ethanol production using Colombian technology in order to make possible a profitable ethanol production. These three plants will produce 100 million gallons (378.5 million liters) of ethanol within five years.[154] By 2009 two other sugarcane ethanol production projects are being developed in Kauai, Hawaii and Imperial Valley, California.[155]
Comparison of key characteristics between the ethanol industries in the United States and Brazil | |||
---|---|---|---|
Characteristic | Brazil | U.S. | Units/comments |
Feedstock | Sugar cane |
Maize |
Main cash crop for ethanol production, the US has less than 2% from other crops. |
Total ethanol fuel production (2017)[1] | 7,06 |
15,80 |
Million U.S. liquid gallons. |
Total arable land[156] | 355 |
270(1) |
Million hectares .
|
Total area used for ethanol crop (2006)[106] | 3.6 (1%) |
10 (3.7%) |
Million hectares (% total arable).[156]
|
Productivity per hectare[2][106][156][157] | 6,800-8,000 |
3,800-4,000 |
Liters of ethanol per hectare. Brazil is 727 to 870 gal/acre (2006), US is 321 to 424 gal/acre (2003). |
Energy balance (input energy productivity)[4][11][106] | 8.3 to 10.2 |
1.3 to 1.6 |
Ratio of the energy obtained from ethanol/energy expended in its production. |
Estimated | 86-90%(2) |
10-30%(2) |
% GHGs avoided by using ethanol instead of gasoline, using existing crop land (No ILUC ).
|
RFS2.[160] |
61%(3) | 21% | Average % GHGs change by using ethanol as compared to gasoline, considering direct and indirect land use change effects .
|
73.40 |
105.10(4) |
Grams of MJ of energy produced, includes indirect land use changes.[159]
| |
Estimated payback time for GHG emissions[163] | 17 years(5) |
93 years(5) |
Brazilian cerrado for sugarcane and US grassland for corn. Land use change scenarios by Fargione.[164] |
Total flex-fuel vehicles produced/sold[165][166][167] | 16.3 million | 10 million | All fleets as of December 2011. The Brazilian fleet includes 1.5 million flex fuel motorcycles. USDOE estimates that in 2009 only 504,297 flex-fuel vehicles were regularly fueled with E85 in the US.[168]
|
Ethanol fueling stations in the country | 35,017 (100%) |
2,326 (1%) |
As % of total gas stations in the country. Brazil by December 2007.[169] U.S. by July 2010.[170] (170,000 total)[3] |
Ethanol's share in the gasoline market[28][59] | 50%(6) |
10% |
As % of total consumption on a volumetric basis. Brazil as of April 2008. U.S. as of December 2011. |
Cost of production (USD/gallon)[2] | 0.83 |
1.14 |
2006/2007 for Brazil (22¢/liter), 2004 for U.S. (35¢/liter). |
Notes: (1) Only contiguous U.S., excludes |
Ethanol diplomacy
In March 2007, "ethanol diplomacy" was the focus of President
Even though the U.S. has imposed a US$0.54 tariff on every gallon of imported ethanol since 1980,
The Memorandum of Understanding (MOU) that the American and Brazilian presidents signed in March 2007 may bring Brazil and the United States closer on energy policy, but it is not clear whether there has been substantive progress implementing the three pillars found in that agreement.[178]
Brazil has also extended its technical expertise to several African countries, including
As President Lula wrote for The Economist[184] regarding Brazil's global agenda:
Brazil's ethanol and biodiesel programmes are a benchmark for alternative and renewable fuel sources. Partnerships are being established with developing countries seeking to follow Brazil's achievements—a 675m-tonne reduction of greenhouse-gas emissions, a million new jobs and a drastic reduction in dependence on imported fossil fuels coming from a dangerously small number of producer countries. All of this has been accomplished without compromising food security, which, on the contrary, has benefited from rising agricultural output ... We are setting up offices in developing countries interested in benefiting from Brazilian know-how in this field.
Environmental and social impacts
Environmental effects
Benefits
Ethanol produced from sugarcane provides energy that is renewable and less carbon intensive than oil. Bioethanol reduces air pollution thanks to its cleaner emissions, and also contributes to mitigate
Energy balance
One of the main concerns about bioethanol production is the
Greenhouse gas emissions
Another benefit of bioethanol is the reduction of greenhouse gas emissions as compared to gasoline, because as much carbon dioxide is taken up by the growing plants as is produced when the bioethanol is burnt, with a zero theoretical net contribution.[187] Several studies have shown that sugarcane-based ethanol reduces greenhouse gases by 86 to 90% if there is no significant land use change,[11][106][186] and ethanol from sugarcane is regarded the most efficient biofuel currently under commercial production in terms of GHG emission reduction.[104][185]
However, two studies published in 2008
A report commissioned by the United Nations, based on a detailed review of published research up to mid-2009 as well as the input of independent experts worldwide, found that ethanol from sugar cane as produced in Brazil "in some circumstances does better than just 'zero emission.' If grown and processed correctly, it has negative emission, pulling CO2 out of the atmosphere, rather than adding it." In contrast, the report found that U.S. use of
Another 2010 study published by the
A 2009 study published in Energy Policy found that the use of ethanol fuel in Brazil has allowed to avoid over 600 million tons of CO2 emissions since 1975, when the
Air pollution
The widespread use of ethanol brought several environmental benefits to urban centers regarding
Even though all automotive
Issues
Water use and fertilizers
Ethanol production has also raised concerns regarding water overuse and pollution, soil erosion and possible contamination by excessive use of
This evaluation also found that consumption of agrochemicals for sugar cane production is lower than in citric, corn, coffee and soybean cropping. Disease and pest control, including the use of agrochemicals, is a crucial element in all cane production. The study found that development of resistant sugar cane varieties is a crucial aspect of disease and pest control and is one of the primary objectives of Brazil's cane genetic improvement programs. Disease control is one of the main reasons for the replacement of a commercial variety of sugar cane.[104]
Field burning
Advancements in fertilizers and natural pesticides have all but eliminated the need to burn fields.[208] Sugarcane fields are traditionally burned just before harvest to avoid harm to the workers, by removing the sharp leaves and killing snakes and other harmful animals, and also to fertilize the fields with ash.[210] There has been less burning due to pressure from the public and health authorities, and as a result of the recent development of effective harvesting machines. In the mid 90s, it was very common to experience quite dense ash rains in cities within the sugarcane's fields during harvest seasons. A 2001 state law banned burning in sugarcane fields in São Paulo state by 2021,[211] and machines will gradually replace human labor as the means of harvesting cane, except where the abrupt terrain does not allow for mechanical harvesting. However, 150 out of 170 of São Paulo's sugar cane processing plants signed in 2007 a voluntary agreement with the state government to comply by 2014.[211][212] Independent growers signed in 2008 the voluntary agreement to comply, and the deadline was extended to 2017 for sugar cane fields located in more abrupt terrain.[210] By the 2009/10 harvest season more than 50% of the cane was collected in São Paulo with harvesting machines.[213] Mechanization will reduce pollution from burning fields and has higher productivity than people, but also will create unemployment for these seasonal workers, many of them coming from the poorest regions of Brazil. Due to mechanization the number of temporary workers in the sugarcane plantations has already declined as each harvester machine replaces about 100 cane cutters a day and creates 30 jobs including operators and maintenance teams.[104][213]
Effects of land use change
Two studies published in 2008 questioned the benefits estimated in previous assessments regarding the reduction of greenhouse gas emissions from sugarcane-based ethanol, as the authors consider that previous studies did not take into account the
Regarding this concern, previous studies conducted in Brazil have shown there are 355 million ha of arable land in Brazil, of which only 72 million ha are in use.[156] Sugarcane is only taking 2% of arable land available,[99] of which ethanol production represented 55% in 2008.[89] Embrapa estimates that there is enough agricultural land available to increase at least 30 times the existing sugarcane plantation without endangering sensitive ecosystems or taking land destined for food crops.[99] Most future growth is expected to take place on abandoned pasture lands, as it has been the historical trend in São Paulo state.[4][85][99][100] Also, productivity is expected to improve even further based on current biotechnology research, genetic improvement, and better agronomic practices, thus contributing to reduce land demand for future sugarcane cultures.[99][100] This trend is demonstrated by the increases in agricultural production that took place in São Paulo state between 1990 and 2004, where coffee, orange, sugarcane and other food crops were grown in an almost constant area.[214]
Also regarding the potential negative impacts of land use changes on carbon emissions, a study commissioned by the Dutch government concluded that "it is very difficult to determine the indirect effects of further land use for sugar cane production (i.e. sugar cane replacing another crop like soy or citrus crops, which in turn causes additional soy plantations replacing pastures, which in turn may cause deforestation), and also not logical to attribute all these soil carbon losses to sugar cane."[104] Other authors have also questioned these indirect effects, as cattle pastures are displaced to the cheaper land near the Amazon.[4][188] Studies rebutting this concern claim that land devoted to free grazing cattle is shrinking, as density of cattle on pasture land increased from 1.28 heads of cattle/ha to 1.41 from 2001 to 2005,[85] and further improvements are expected in cattle feeding practices.[215]
A paper published in February 2010 by a team led by Lapola from the
The main Brazilian ethanol industry organization (UNICA) commented that this study and other calculations of land-use impacts are missing a key factor, the fact that in Brazil "cattle production and pasture has been intensifying already and is projected to do so in the future".[218]
Deforestation
Other criticism have focused on the potential for clearing rain forests and other environmentally valuable land for sugarcane production, such as the Amazon, the Pantanal or the Cerrado.[159][163][164][188][209] Embrapa and UNICA have rebutted this concern explaining that 99.7% of sugarcane plantations are located at least 2,000 kilometres (1,200 mi) from the Amazonia, and expansion during the last 25 years took place in the Center-South region, also far away from the Amazonia, the Pantanal or the Atlantic forest. In São Paulo state growth took place in abandoned pasture lands.[99][100][219]
The impact assessment regarding future changes in land use, forest protection and risks on biodiversity conducted as part of the study commissioned by the Dutch government[104] concluded that "the direct impact of cane production on biodiversity is limited, because cane production replaces mainly pastures and/or food crop and sugar cane production takes place far from the major biomes in Brazil (Amazon Rain Forest, Cerrado, Atlantic Forest, Caatinga, Campos Sulinos and Pantanal)." However, "the indirect impacts from an increase of the area under sugar cane production are likely more severe. The most important indirect impact would be an expansion of the area agricultural land at the expense of cerrados. The cerrados are an important biodiversity reserve. These indirect impacts are difficult to quantify and there is a lack of practically applicable criteria and indicators."[104]
In order to guarantee a sustainable development of ethanol production, in September 2009 the government issued by decree a countrywide agroecological land use zoning to restrict sugarcane growth in or near environmentally sensitive areas such as the
Social implications
Sugarcane has had an important social contribution to some of the poorest people in Brazil by providing income usually above the minimum wage, and a formal job with fringe benefits.[104][223] Formal employment in Brazil accounts an average 45% across all sectors, while the sugarcane sector has a share of 72.9% formal jobs in 2007, up from 53.6% in 1992, and in the more developed sugarcane ethanol industry in São Paulo state formal employment reached 93.8% in 2005.[223] Average wages in sugar cane and ethanol production are above the official minimum wage, but minimum wages may be insufficient to avoid poverty.[104] The North-Northeast regions stands out for having much lower levels of education among workers and lower monthly income. The average number workers with 3 or less school years in Brazil is 58.8%, while in the Southeast this percentage is 46.2%, in the Northeast region is 76,4%.[223] Therefore, earnings in the Center-South are not surprisingly higher than those in the North-Northeast for comparable levels of education.[104] In 2005 sugarcane harvesting workers in the Center-South region received an average wage 58.7% higher than the average wage in the North-Northeast region.[223] The main social problems are related to cane cutters which do most of the low-paid work related to ethanol production.[104]
The total number of permanent employees in the sector fell by one-third between 1992 and 2003, in part due to the increasing reliance on mechanical harvesting, especially from the richer and more mature sugarcane producers of São Paulo state. During the same period, the share of temporary or seasonal workers has fluctuated, first declining and then increasing in recent years to about one-half of the total jobs in the sector, but in absolute terms the number of temporary workers has declined also.[104] The sugarcane sector in the poorer Northeast region is more labor-intensive as production in this region represents only 18.6% of the country's total production but employs 44.3% of worker force in the sugarcane sector.[223]
The manual harvesting of sugarcane has been associated with hardship and poor working conditions.[4][104][209] In this regard, the study commissioned by the Dutch government[104] confirmed that the main problem is indeed related to manual cane harvesting. A key problem in working conditions is the high work load. As a result of mechanization the workload per worker has increased from 4 to 6 ton per day in the eighties to 8 to 10 ton per day in the nineties, up to 12 to 15 ton per day in 2007. If the quota is not fulfilled, workers can be fired.[4][104] Producers say this problem will disappear with greater mechanization in the next decade.[4] Also, as mechanization of the harvesting is increasing and only feasible in flat terrain, more workers are being used in areas where conditions are not suitable for mechanized harvesting equipment, such as rough areas where the crops are planted irregularly, making working conditions harder and more hazardous.[104]
Also unhealthy working conditions and even cases of slavery and deaths from overwork (cane cutting) have been reported,[209] but these are likely worst-case examples.[104] Even though sufficiently strict labor laws are present in Brazil, enforcement is weak.[104] Displacement and seasonal labor also implies physical and cultural disruption of multifunctional family farms and traditional communities.[209]
Regarding social responsibility the ethanol production sector maintains more than 600 schools, 200 nursery centers and 300 day care units, as legislation requires that 1% of the net sugar cane price and 2% of the net ethanol price must be devoted to medical, dental, pharmaceutical, sanitary, and educational services for sugar cane workers. In practice more than 90% of the mills provide health and dental care, transportation and collective life insurance, and over 80% provide meals and pharmaceutical care. However, for the temporary low wage workers in cane cutting these services may not be available.[104]
Effect on food prices
Some
Luiz Inácio Lula da Silva gave a strong rebuttal, calling these claims "fallacies resulting from commercial interests", and putting the blame instead on U.S. and European agricultural subsidies, and a problem restricted to U.S. ethanol produced from maize. The Brazilian President has also claimed on several occasions that his country's sugar cane–based ethanol industry has not contributed to the food price crises.[5][156][235]
A report released by Oxfam in June 2008[236] criticized biofuel policies of rich countries as neither a solution to the climate crisis nor the oil crisis, while contributing to the food price crisis. The report concluded that from all biofuels available in the market, Brazilian sugarcane ethanol is "far from perfect" but it is the most favorable biofuel in the world in term of cost and greenhouse gas balance. The report discusses some existing problems and potential risks, and asks the Brazilian government for caution to avoid jeopardizing its environmental and social sustainability. The report also says that: "Rich countries spent up to $15 billion last year supporting biofuels while blocking cheaper Brazilian ethanol, which is far less damaging for global food security."[237][238]
A World Bank research report published in July 2008[239] found that from June 2002 to June 2008 "biofuels and the related consequences of low grain stocks, large land use shifts, speculative activity and export bans" accounted for 70-75% of total price rises. The study found that higher oil prices and a weak dollar explain 25-30% of total price rise. The study said that "large increases in biofuels production in the United States and Europe are the main reason behind the steep rise in global food prices" and also stated that "Brazil's sugar-based ethanol did not push food prices appreciably higher."[240][241] The report argues that increased production of biofuels in these developed regions were supported by subsidies and tariffs on imports, and considers that without such policies, price increases worldwide would have been smaller. This research paper also concluded that Brazil's sugar cane–based ethanol has not raised sugar prices significantly, and recommends removing tariffs on ethanol imports by both the U.S. and EU, to allow more efficient producers such as Brazil and other developing countries, including many African countries, to produce ethanol profitably for export to meet the mandates in the EU and U.S.[239]
An economic assessment report also published in July 2008 by the OECD[242] agrees with the World Bank report regarding the negative effects of subsidies and trade restrictions, but found that the impact of biofuels on food prices are much smaller. The OECD study is also critical of the limited reduction of GHG emissions achieved from biofuels produced in Europe and North America, concluding that the current biofuel support policies would reduce greenhouse gas emissions from transport fuel by no more than 0.8% by 2015, while Brazilian ethanol from sugar cane reduces greenhouse gas emissions by at least 80% compared to fossil fuels. The assessment calls on governments for more open markets in biofuels and feedstocks in order to improve efficiency and lower costs.[243]
A study by the Brazilian research unit of the
See also
- First-generation biofuel
- Renewable energy in Brazil
- Common ethanol fuel mixtures
- Biofuels by region
- List of renewable energy topics by country
- Ethanol fuel by country
- Ethanol fuel in Australia
- Ethanol fuel in the Philippines
- Ethanol fuel in Sweden
- Ethanol fuel in the United States
- Flexible-fuel vehicle
- Low-carbon fuel standard
Bibliography
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External links
This article's use of external links may not follow Wikipedia's policies or guidelines. (August 2020) |
- BBC News video segment on ethanol in Brazil
- Biofuels: The Promise and the Risks. The World Bank's World Development Report 2008: Agriculture for Development
- Biofuelwatch on Ethanol in Brazil
- Brazil Institute: Biofuels Central.WWICS Archived May 20, 2007, at the Wayback Machine
- Brazil priming ethanol initiative to supply fuel-thirsty Japan
- Brazilian Ethanol Policy: Lessons for the United States
- The Brazilian biofuels industry (2008 status)
- "Carbonômetro" - Tool to estimate how much CO2 emissions have been avoided by ethanol used by flex-fuel cars in Brazil since March 2003.
- CDM Potential in Brazil, by S. Meyers, J. Sathaye et al.
- CNBC's Yergin: What the U.S. Can Learn From Brazil About Ethanol By CNBC.com|07 Jun 2007|12:33 PM ET
- Cogeneration in Ethanol Plants by P. M. Nastari
- Corporate Sustainability in the Brazilian Sugar-Ethanol Sector, conducted by the Brazilian Foundation for Sustainable Development in a partnership with CSM/IMD[permanent dead link]
- Ethical Sugar Archived January 21, 2016, at the Wayback Machine
- From Alcohol to Ethanol: A winning trajectory History of ethanol fuel use in Brazil (English and Portuguese)
- Global Trade and Environmental Impact Study of the EU Biofuels Mandate by the International Food Policy Institute (IFPRI) March 2010
- Sugarcane Agroecological Zoning - Brazilian Federal Government
- Reconciling food security and bioenergy: priorities for action, Global Change Biology Bioenergy Journal, June 2016.
- Towards Sustainable Production and Use of Resources: Assessing Biofuels, United Nations Environment Programme, October 2009
- GLOBIOM model: ILUC Quantification Study of EU Biofuels