Released March 05, 2007 | CORDOBA, ARGENTINA
en
Researched by Industrial Info Resources (Sugar Land, Texas). High gas prices, shrinking oil reserves, and the menace of global warming are driving interest in ethanol, an energy source produced from agricultural plant matter rather than fossil fuels such as oil and coal. The United States and Brazil, the world's top producers of ethanol, are attempting to create a global market for the biofuel by making investments in alternative energy sources. According to experts, increased use of ethanol would benefit both countries. Ethanol produces 12% less greenhouse gases linked to global warming than gasoline and can be added to fuel in low concentrations to help reduce carbon monoxide pollution, which contributes to smog.
Together, the United States and Brazil produce about 70% of the world's ethanol, a fuel that according to President Bush represents a cornerstone in reducing U.S. dependence on oil and in lessening the power that oil has over the region. This subject will be discussed when President George W. Bush meets his Brazilian counterpart, Luiz Inacio Lula da Silva, during a trip to Latin America set for later this week.
Brazilian sugar cane-based ethanol is more efficient to produce than the corn-based fuel made in the United States. In Brazil, ethanol is made by fermenting and distilling sugar cane, and its production advantages are clear. With extensive available land, ethanol can be produced for $30 dollars a barrel. Today, a barrel of oil is priced at more than double that. Brazil has the largest sugar cane crop in the world based on its exceptional tropical climate that is required for the productive culture of sugar cane. Although, the United States has surpassed Brazil in the total amount of ethanol produced, producers still cannot keep up with increasing demand.
The real source of Brazil's self-sufficiency is the country's success in meeting its growing demand for fuel by increasing production from petroleum and ethanol.
In 2006, the United States produced about 4.9 billion gallons and imported an additional 600 million gallons, with 400 million gallons coming mostly from Brazil where ethanol now accounts for as much as 20% of its transport fuel market. Vehicles sold in Brazil are flex-fuel models, introduced by Brazilian automakers in 2003 that run on either ethanol or gas. The country has reduced its gasoline consumption by almost half over the last four years. Seven out of every ten new cars sold in Brazil are flex-fuel, which can use gasoline, ethanol, or a mixture of both fuels.
Brazil is investigating ways to improve ethanol transportation, in addition to boosting exports of the fuel, especially to Japan, the world's second-largest gasoline market after the U.S. Brazil plans to produce enough ethanol to replace 10% of world gasoline demand in the next 20 years.
A project, developed with the state-owned oil giant Petrobras (Rio de Janeiro, Brazil), would multiply by fifteen times the countrys current production of ethanol from sugar cane, and would have an annual cost of up to $10 billion for the first four or five years. Silas Rondeau, Brazilian Mines and Energy Minister, said that of the total budget directed to the Brazilian biofuels sector, $7.6 billion would go into the cane ethanol sector, with $5.6 billion going toward production and $1.9 billion to distribution, such as pipelines.
Industrial Info's Ethanol Production Database provides a comprehensive outline of all current development activities in the emerging synthetic fuels market. This database covers 134 ethanol plants currently in operation and 348 plants under development. It also covers 32 operational biodiesel plants and 81 biodiesel plants under development.
Industrial Info Resources (IIR) provides marketing communication services ranging from industrial database solutions to market forecasting, custom analytics, and specialty promotions that support high-level image campaigns.
Together, the United States and Brazil produce about 70% of the world's ethanol, a fuel that according to President Bush represents a cornerstone in reducing U.S. dependence on oil and in lessening the power that oil has over the region. This subject will be discussed when President George W. Bush meets his Brazilian counterpart, Luiz Inacio Lula da Silva, during a trip to Latin America set for later this week.
Brazilian sugar cane-based ethanol is more efficient to produce than the corn-based fuel made in the United States. In Brazil, ethanol is made by fermenting and distilling sugar cane, and its production advantages are clear. With extensive available land, ethanol can be produced for $30 dollars a barrel. Today, a barrel of oil is priced at more than double that. Brazil has the largest sugar cane crop in the world based on its exceptional tropical climate that is required for the productive culture of sugar cane. Although, the United States has surpassed Brazil in the total amount of ethanol produced, producers still cannot keep up with increasing demand.
The real source of Brazil's self-sufficiency is the country's success in meeting its growing demand for fuel by increasing production from petroleum and ethanol.
In 2006, the United States produced about 4.9 billion gallons and imported an additional 600 million gallons, with 400 million gallons coming mostly from Brazil where ethanol now accounts for as much as 20% of its transport fuel market. Vehicles sold in Brazil are flex-fuel models, introduced by Brazilian automakers in 2003 that run on either ethanol or gas. The country has reduced its gasoline consumption by almost half over the last four years. Seven out of every ten new cars sold in Brazil are flex-fuel, which can use gasoline, ethanol, or a mixture of both fuels.
Brazil is investigating ways to improve ethanol transportation, in addition to boosting exports of the fuel, especially to Japan, the world's second-largest gasoline market after the U.S. Brazil plans to produce enough ethanol to replace 10% of world gasoline demand in the next 20 years.
A project, developed with the state-owned oil giant Petrobras (Rio de Janeiro, Brazil), would multiply by fifteen times the countrys current production of ethanol from sugar cane, and would have an annual cost of up to $10 billion for the first four or five years. Silas Rondeau, Brazilian Mines and Energy Minister, said that of the total budget directed to the Brazilian biofuels sector, $7.6 billion would go into the cane ethanol sector, with $5.6 billion going toward production and $1.9 billion to distribution, such as pipelines.
Industrial Info's Ethanol Production Database provides a comprehensive outline of all current development activities in the emerging synthetic fuels market. This database covers 134 ethanol plants currently in operation and 348 plants under development. It also covers 32 operational biodiesel plants and 81 biodiesel plants under development.
Industrial Info Resources (IIR) provides marketing communication services ranging from industrial database solutions to market forecasting, custom analytics, and specialty promotions that support high-level image campaigns.
