Bioenergy in Brazil – from traditional to modern systems - Biomass as Energy Source: Resources, Systems and Applications - page 79

the agricultural production value in Brazil, only second to soya, which amounts to 24.2% of the
total value (IBGE, 2012).
Another important contribution of the sugar-ethanol industry to the overall energy supply in
Brazil refers to the generation of heat and power using sugarcane residues. Traditionally, the
bagasse was used to generate heat and power and meet internal process needs. In 2009, however,
sugar-ethanol producers exported almost 6TWh of power to the grid. The opening of electricity
markets and government efforts to diversify the sources of electricity generation have provided an
incentive to upgrade cogeneration facilities using bagasse (Khatiwada et al. , 2012). The CDM 8
(Clean Development Mechanism of the climate convention) also helped boost investments on
efficiency improvements since bioelectricity is eligible to generate tradable certificates. In fact,
this type of project represents one third of the CDM renewable energy projects realized in Brazil.
All in all, the ethanol program started in 1975 has contributed to a reduction of more than
600 million tonnes of CO 2 emissions. Increased climate benefits are expected as the production
increases further and fuel substitution proceeds both nationally and internationally due to the
formation of global ethanol markets. Despite preoccupation about the competition between food
and fuel, the Brazilian food production has increased continuously side by side with the expansion
of sugarcane for sugar and ethanol over the past decades. In fact, Brazil is the world's largest
exporter of grain. To a great extent, the productivity gains accrued from the modernization of the
agriculture have benefited both food and fuel production.
In the next decade, ethanol production is expected to increase further in Brazil to meet both
national and international demand for transport fuel. EPE (2011c) projects continued expansion
of sugarcane planted areas and production capacity. Further efficiency improvements shall also be
achieved along the supply chain, including increasing production and importance of bioelectricity.
In this way, ethanol shall remain as a competitive option in the market. As a result of the agro-
ecological zoning developed by the Brazilian government, it is not possible to plant sugarcane in
the sensitive biomes of the Amazon and Pantanal (wetlands in the center-western part of Brazil).
Neither is sugarcane expansion allowed in areas where there is native vegetation, for example in
the cerrado . Nevertheless, some 65 million hectares can still be used for sugarcane (Leite et al. ,
2009).
4.4.2 The development of biodiesel production
Although the use of vegetable oils in engines dates from the experiments made by Rudolf Diesel
as long ago as 1900, Expedito Parente, a Brazilian researcher, was the first to patent biodiesel in
the world as late as 1980. In Brazil, the first attempts to use vegetable oils in transport date from
the 1940s. Vegetable oils had been used in emergency situations but were not considered suitable
as heavy vehicle fuel, in contrast with biodiesel, which can be mixed with the fossil diesel in
varied proportions (Yusuf et al. , 2011). More recently, biodiesel has attracted global interest and
many countries are investing in research in this field. Brazil has an intermediary position in this
new context but is reviewing strategies, given the recent success of the biodiesel program so far
and potential for market development.
The Brazilian National Energy Commission created the Pro-Oleo program in 1980 aiming at
30% fossil diesel substitution initially (Pousa et al. , 2011). Like in the case of the Proalcool, the
Pro-Oleo program also included research efforts, including the development of technologies for
biodiesel production, and engines, which were done in cooperation with motor manufacturers
in the country. However, the biodiesel program did not get the same government engagement
and public support as the alcohol program. Eventually, production costs were judged too high to
be competitive, and the program had already been abandoned in the mid-1980s when oil prices
came down.
8 http://cdm.unfccc.int/