Biofuels in Perspective

56 Biofuels
4.2 Introduction
The Brazilian experience in the large-scale production of biofuels is essentially regarding
ethanol, as the biodiesel program was created in 2004 and no important result has been
achieved so far. On the other hand, large-scale ethanol production as automotive fuel started
in 1975 and since then the ethanol production has increased more than 28 times. In 2006
ethanol production (anhydrous + hydrated) has reached 17.8 billion liters (Gl). 1 During
almost 30 years Brazil was the largest producer of fuel ethanol in the world but is currently
the second largest (the production of USA in 2006 reached almost 18.4 Gl). 2
All ethanol production in Brazil is based on sugarcane. There are two main types of
distilleries used in the production of sugarcane-based ethanol: annexed and autonomous.
An annexed distillery is built alongside a sugarcane mill and can provide considerable
flexibility against price fluctuations; is currently the preferred option in Brazil: a typical
mill can vary the share of sugarcane crushed for ethanol production from 40 % to 60 %
regarding the total. In an annexed distillery the feedstock is usually a blend of cane juice and
molasses. On the other hand, in an autonomous distillery the prime aim is the production of
ethanol. This is only justified where there is a large and highly secure market for ethanol, as
in the case of Brazil, but through the years most of the existing autonomous distilleries have
been converted to annex (it is estimated that there are less than 50 autonomous distilleries
in almost 350 units). In Brazil an autonomous distillery just uses cane juice. 3 The synergy
of the production of sugar and ethanol in the same mill is one of reasons for the low costs
of ethanol production in Brazil. This has been called the ‘Brazilian model’ on ethanol
production.
In Brazil ethanol is either used as oxygenate and octane enhancer of gasoline or in
neat-ethanol engines. In the first case, anhydrous ethanol (99.6 Gay-Lussac) is blended to
gasoline in the proportion of 20–26 % in volume of ethanol. All gasoline sold in Brazil is
in fact gasohol. Hydrated ethanol (95.5 Gay-Lussac) is used in neat ethanol vehicles since
late 1970s and, since 2003, in flex-fuel vehicles – FFVs.
Currently ethanol covers more than 30 % of the energy demand of the automotive
transport (energy basis) and the forecasts are that ethanol use will remarkably rise in the
years to come. In Brazil ethanol is competitive vis-à-vis gasoline and no subsidies have
been applied since late 1990s.
4.3 The Brazilian Experience with Ethanol
In Brazil, ethanol has been blended with gasoline since the 1930s, but it was just in 1975 that
the Brazilian Alcohol Program (PROALCOOL) was created aiming at partially displacing
gasoline in automotive transport. At that time the country was strongly dependent on
imported oil (90 % in 1973 and more than 80 % in 1975) and gasoline was the main oil
derivative consumed (more than 25 % of the demand of oil derivatives – energy basis).
During the first years the production of anhydrous ethanol was the priority, in order to be
blended with gasoline.
In 1979, during the second oil chock, the Brazilian Government decided to enlarge
the Program, supporting large-scale production of hydrated ethanol to be used as neat
fuel in modified engines. In the 1975–79 period, ethanol production was accomplished