Ministry of Agriculture, Livestock and Food Supply - Embrapa

International Biofuel Market
Ethanol is consolidated in the Brazilian biofuel market, wherein gasoline
contains 25% anhydrous alcohol. Hydrated alcohol is consumed pure or mixed
with any percentage of gasoline in bi-fuel or dual fuel automobiles. The demand
varies depending on the gasoline prices. The biodiesel market is still incipient.
The size of the Brazilian market guarantees the success of biomass energy
initiatives, and a foreign market is beginning to emerge. Several countries have
their own domestic biofuel production and consumption programs, particularly
biofuel mixed with fossil fuels. Nevertheless, Brazilian alcohol exports demonstrate
that the international biofuel market is barely getting started: practically all our
production is not used as fuel.
It is important for Brazil to organize, drive and lead the external biofuel market,
as set forth in the federal government's Agroenergy Policy Guidelines:
"Leadership in the international biofuel commerce.
A series of comparative advantages should enable Brazil to lead the international
biofuel market and promote energy products derived from agroenergy.
Expanding exports would not only generate hard currency, but also consolidate
the sector and drive the development of the country.”
The successful implementation of any ambitious program of foreign alliances
requires that both government and private sector join efforts and diligently strive
to achieve the same objectives.
It is possible to assert that the circumstances are favorable for the creation
of an international biofuel market, beginning with an expansion of alcohol trade
and encouraging its use as a fuel. The reasons for success in such an endeavor
are the following.
a) Petroleum prices are rising and the petroleum market is prone to
uncertainties.
b) The world has become increasingly concerned with the environment,
particularly after the Kyoto Protocol went into effect.
c) In view of the increased petroleum prices and the systematic depletion
of petroleum reserves, the countries are emphasizing the need to diminish
dependency on petroleum in their energy matrixes.
The Brazilian government has propounded in international negotiations that
the countries broaden their energy matrixes to include the new renewable sources
of energy in order to lessen future environmental impacts.
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