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Reading Summary: Brazil Ethanol.docx

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Geography 3422A/B
Milford Green

Brazil Ethanol 11/7/2012 6:13:00 PM Brazil Ethanol  This country expects to become energy self-sufficient this year, meeting its growing demand for fuel by increasing production from petroleum and ethanol  Derived from sugar cane, it is so widespread that some gas stations have 2 sets of pumps marked A for alcohol and G for gas  Taken 30 years of effort, and several billion dollars in incentives and involved many missteps  Brazil’s ethanol yields nearly eight times as much energy as corn- based options yet heavy duties on the Brazilian product have limited its entry into the US and Europe  Tax of 54 cents a gallon on all imports o 60% of sugar productions  “flex fuel” engines – designed to run on ethanol, gasoline, or any mixture of the two  Gasoline sold in brazil contains about 25% alcohol  Ethanol development is led by Brazilian companies with limited capital  Not interested in becoming the Saudi Arabia of ethanol  As a large producer and user, Brazil needs other big buyers and sellers in the international market if ethanol is to become a commodity  1975 – “pro alcohol” program started after the first global energy crisis, then by mid 1980s more than 3/4 of the 800,000 cars made in Brazil each year could run on cane-based ethanol  1989 – sugar cane prices rose sharply, mill owners stopped making cane available for processing into alcohol, preferring to profit from the hard currency tha
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