Environmental Engineering Reference
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in low-interest loans to the agricultural and industrial sectors to stimulate ethanol
production for transportation use; (3) provided subsidies so ethanol's price at the
pump was 59 percent of the price of gasoline; and (4) required that all fuels be
blended with a minimum of 22 percent ethanol (called E22 fuel). Brazil removed
its price supports for ethanol in 2000, when it deregulated the ethanol market, but
still requires that all fuels be blended with 20 to 25 percent ethanol, depending on
market conditions. Moreover, to receive an operating license, all fueling stations
must provide an ethanol or ethanol-blend pump. In 2003, the Brazilian
government introduced flex-fuel cars—which can run on ethanol, gasoline, or a
blend of the two, thus allowing consumers to choose which fuel to use based on
the current oil and ethanol prices—further encouraging the consumption of
ethanol.
As of 2005, Brazil was the world's ethanol leader, producing 4.2 billion
gallons of ethanol per year, or 47 percent of the world's supply. Brazil no longer
needs to import crude oil for transportation, saving an estimated $1.8 billion per
year by displacing 40 percent of its gasoline consumption—200,000 barrels of oil
per day—with ethanol, according to Brazilian experts. In comparison, the United
States produced 3.9 billion gallons of ethanol in 2005, displacing about 3 percent
of gasoline consumption. By 2011, Brazil's ethanol production is expected to
increase to 27 billion gallons per year—a more than 600 percent increase—from
efficiency improvements and land expansion. With the introduction of flex-fuel
cars, consumer confidence in ethanol consumption has grown significantly,
according to Brazilian embassy officials. As a result, more than 70 percent of cars
sold in Brazil today run on ethanol or ethanol blends, and according to Brazil's
former Secretary of Environment, ethanol is now fully competitive with
international gas prices—sold for 60 to 70 percent of the price of gasoline at the
pump.
Brazil has also significantly improved its environmental profile by replacing
oil with ethanol in the transportation sector. From 1975 to 2000, for instance, the
use of ethanol in cars saved 100 million tons of carbon emissions, according to
Brazilian authorities. In addition, ethanol production has helped Brazil become
more self-sufficient in electricity. In particular, by burning sugarcane waste, mills
have been able to generate energy surpluses of around 600 megawatts per crop
season, allowing them to be completely self-sufficient in electricity, and in some
cases, to export electricity abroad.
Denmark's Wind Energy Generates 19 Percent of Its Electricity
Successive Danish governments have committed to a series of national energy
plans aimed at reducing dependency on imported fuels, improving the
