Brazil Leading the Way in Biofuels
Brazil has established itself as the global leader in biofuel production and usage over the past decades.
With a large agriculture sector and suitable climate conditions, the country has relentlessly pursued the development of sustainable biofuels that can reduce its dependence on fossil fuels.
A Pioneering Effort
Brazil began investing heavily in biofuel research and production back in the 1970s, when the OPEC oil crisis highlighted the need for energy security. Since then, it has become the world's second largest producer and consumer of ethanol fuel, next only to the United States. A bulk of Brazil's ethanol comes from sugarcane, which grows abundantly in the tropical climate. Sugarcane ethanol aka ethanol has largely replaced gasoline in Brazilian vehicles, with over 40 million flex-fuel vehicles that can run on any proportion of gasoline and ethanol. This pioneering effort has significantly reduced emissions and oil imports over the years.
Leading Global Ethanol Exporter
Brazil's experience with sugarcane ethanol production and infrastructure helped it become the leading global exporter of the biofuel. It currently accounts for over 50% of global ethanol trade. The top importers of Brazilian ethanol include the United States, Netherlands, Germany and Japan. Brazil's competitively priced sugarcane ethanol has found markets in countries looking to blend biofuels into their transportation fuel under renewable standards. Global demand is likely to rise further with more nations committing to emissions reductions under the Paris Agreement. Brazil is well placed to capitalize on this growing trade opportunity.
Expanding into Cellulosic Ethanol
While sugarcane will remain its main feedstock, Brazil is exploring the production of cellulosic or second generation ethanol to diversify its biofuel portfolio. Cellulosic ethanol utilizes non-food plant biomass like agricultural residues and wood, so it does not compete with food. The tropical climate allows diverse biomass growth throughout the year. Brazil is carrying out research and pilot projects focused on producing ethanol from materials like sugar cane bagasse, energy cane and elephant grass.
Brazil Leading the Way in Biofuels: https://www.coherentmi.com/blog/brazil-leading-the-way-in-biofuels-10
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