How did Brazil become a
pioneer in ethanol production?
Short Brazil sugar and ethanol history
Brazil has a long tradition of sugar cane cultivation dating back to the 16th when the Portuguese crown colonised the country. The agricultural strategy of the colonists was to produce sugar to be exported to Europe. (Retsö, 2011) Centuries later, as a result of these sugar plants Brazil is now a leading producer of sugarcane ethanol and a pioneer in using the ethanol as an economically viable alternative to fossil motor fuels. The production of ethanol is mostly sold domestically where sold either pure or gasoline-blended. The use of ethanol in vehicles began as early as 1920s in Brazil but boosted notably during the oil crisis of the 1970s when government realised efforts were needed in order to diversify Brazils energy source. In 1979, these efforts resulted in the development of the first industrial-scale car production of cars running on ethanol as fuel. However the real upswing for sugarcane ethanol came in 2003 during the introduction of flex fuel vehicles running on either gasoline or ethanol. (Ellis, 2007) Today, Brazil has an energy matrix where the proportion of renewable energy sources is remarkable high, and the country is among the worlds biggest producer of biofuels (MME, 2012).
In the rise of the oil prices in the 1970s and declining Brazilian sugar exports the current Brazilian Institute of Alcohol was reinforced and the government began the Brazilian ethanol program named Pró-Alcool. The aim of the program was to develop technologies, spur the increase of production and wide spreading the use of ethanol for fuel. Between 1970s and 1980s the government of Brazil stimulated both supply and demand of ethanol by measurements such as strongly subsidising ethanol production and tax incentives that reduced prices of ethanol-powered cars. (ANP, 2010)
Brazil has a long tradition of sugar cane cultivation dating back to the 16th when the Portuguese crown colonised the country. The agricultural strategy of the colonists was to produce sugar to be exported to Europe. (Retsö, 2011) Centuries later, as a result of these sugar plants Brazil is now a leading producer of sugarcane ethanol and a pioneer in using the ethanol as an economically viable alternative to fossil motor fuels. The production of ethanol is mostly sold domestically where sold either pure or gasoline-blended. The use of ethanol in vehicles began as early as 1920s in Brazil but boosted notably during the oil crisis of the 1970s when government realised efforts were needed in order to diversify Brazils energy source. In 1979, these efforts resulted in the development of the first industrial-scale car production of cars running on ethanol as fuel. However the real upswing for sugarcane ethanol came in 2003 during the introduction of flex fuel vehicles running on either gasoline or ethanol. (Ellis, 2007) Today, Brazil has an energy matrix where the proportion of renewable energy sources is remarkable high, and the country is among the worlds biggest producer of biofuels (MME, 2012).
In the rise of the oil prices in the 1970s and declining Brazilian sugar exports the current Brazilian Institute of Alcohol was reinforced and the government began the Brazilian ethanol program named Pró-Alcool. The aim of the program was to develop technologies, spur the increase of production and wide spreading the use of ethanol for fuel. Between 1970s and 1980s the government of Brazil stimulated both supply and demand of ethanol by measurements such as strongly subsidising ethanol production and tax incentives that reduced prices of ethanol-powered cars. (ANP, 2010)
So what could the reasons be for Brazil
becoming a pioneer in ethanol production?
The Brazilian sugar systems go way back in tradition and know-how ever since the country was colonised in the 16th century with an agricultural aim of culturing and exporting sugar inter alia. Technologies have over the years been refined and the production of and use of ethanol as motor fuel had an early start in Brazil. When sugar exports were declining, the expansion of ethanol might initially have been a relief measurement for the sugar industry and a synergy effect of that, a decimated dependence on oil import. Realising the potential of this alternative energy source and with production and knowledge already established, the natural thing to do would be to re-evaluate assets you already have; sugar and a country with indigenous technology. The government acknowledged this asset and when oil prices peaked on top of a declining sugar export, focus on ethanol production primarily for the domestic market seemed viable. In order to stimulate and control the demand and supply, governmental intervention in terms of subsidies, tax incentives and domestic manufacturing of subsidised ethanol-powered cars progressed for decades resulting in a turnover from sugar to ethanol production that in contrast to wind and solar power does not need or is dependent on imports.
The Brazilian sugar systems go way back in tradition and know-how ever since the country was colonised in the 16th century with an agricultural aim of culturing and exporting sugar inter alia. Technologies have over the years been refined and the production of and use of ethanol as motor fuel had an early start in Brazil. When sugar exports were declining, the expansion of ethanol might initially have been a relief measurement for the sugar industry and a synergy effect of that, a decimated dependence on oil import. Realising the potential of this alternative energy source and with production and knowledge already established, the natural thing to do would be to re-evaluate assets you already have; sugar and a country with indigenous technology. The government acknowledged this asset and when oil prices peaked on top of a declining sugar export, focus on ethanol production primarily for the domestic market seemed viable. In order to stimulate and control the demand and supply, governmental intervention in terms of subsidies, tax incentives and domestic manufacturing of subsidised ethanol-powered cars progressed for decades resulting in a turnover from sugar to ethanol production that in contrast to wind and solar power does not need or is dependent on imports.
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