Northeast Brazil has a long history of sugarcane production and ethanol fuel dating back to the 16th century. Sugarcane was introduced by the Portuguese and Brazil became a major sugar exporter using slave labor. In the late 19th century, ethanol began being used as a fuel in engines. The Brazilian ethanol program expanded in the 1970s during the oil crisis to promote domestic ethanol production and reduce gasoline dependence. By the late 1980s, ethanol comprised 25% of vehicle fuel in Brazil. Debate continues around the environmental and food impacts of expanding sugarcane ethanol production. Large companies are investing hundreds of millions in ethanol projects in Brazil, and production and exports are projected to significantly increase in the coming decades to meet growing global demand.

1. Northeast Brazil: Sugarcane based Ethanoletanol

2. HistorySugarcane:16th century: Portuguese introduce plantations and sugarcane to NE Brazilian coastBy the end of the 16th century, Brazil is one the world’s richest colonies due to high European demand for sugarIndigenous slave labor not valued; sugar demand and african slave import“Ideal’ model of success assumed and sugar plantations w/ African labor grows into Amazon region. Not successful due to unsuitable land.BahiaAmazon

3. Ethanol PropertiesFermentation: Prime process; microbial conversion of sugar in plant material. It leads directly to ethanol, CO2 and other by-products.Recovery of ethanol from fermentation broth: 1. Distillation of the dilute alcohol to its azeotrope (95-57% ethanol by weight); 2. Distillation utilizing a 3rd component (organic solvent or strong dehydrating agent) to break up the azeotrope and remove the remaining H20; 3. Distillation to separate H20 from the 3rd component to give absolute alcohol and allow the 3rd component to be recycled.

4. Sugarcane Ethanol YieldsSource: Humphreys and Glasgow Ltd., 1980

5. Sugarcane CharacteristicsSource: RibeiroFilho, 1979Stalks of sugarcane over 20 years old still stand

6. Agricultural productivity must be >40 t/ha to be industrially and financially viable HistoryEthanol:Locomotive travels from Rio to São Paulo on methanol mixture of 5% ethyl ether 1930Conference in Bahia on the Sugar Industry leads to document on Industrial Applications based on ethanol1902Use of alcohol in official vehicles made compulsory for 1st time in Pernambuco19191897Nikolas A. Otto used pure alcohol in an engine for the 1st time 1907US Dept of Agr. publishes report called “Use of Alcohol and Gasoline in Farm Engines” 1925Ford makes pure alcohol circuit1931Commision of Defence for Alcohol Production created

7. HistoryMinistry of Agriculture authorized to assign contracts to support sugar mills for pure alcohol production1932Avg. annual ethanol content in ethanol/gasoline blends reaches 40% in NE Brazil1942-1956European consumption of alcohol based fuel tops ½ mill. tons /yr19391933Institute of Sugar and Alcohol (IAA) established 1942Minimum price (P) for alcohol is established for a 4 yr min. 1960-1965sugar P in intl. market and low petroleum P reduces role of ethanol in Brazil. Law No. 4.452 modifies tax legislation on fuels and introduces an additional one alcohol

8. HistoryBeginning of manufacture of neat-ethanol cars by auto industry and selling of neat alcohol fuel at service stations.14% of Brazil’s gasoline D is displaced 1979Fleet tests begin for neat-ethanol (Otto) car engines. Blend reaches 45% ethanol and deploys 5% of Brazil’s gasoline D1977 sugar P in intl. market. Upper limit of alcohol/gasoline blends from 5%-10%1966-1967 198210% of total passenger cars or 1.2 million Otto engines projected197850 blending centers supply ethanol/gasoline blends of up to 60% ethanol. 11% Brazilian D for gasoline displaced1973Oil Crisis beginsPNA (Natl. Alcohol Program) created to promote ethanol production. Plan was to alcohol use and displace Brazil’s gasoline demand (D)

10. Expansion Period

11. HistoryEthanol market is deregulated and subsidies are removed200090% of Brazil’s automotive industry were E100Late 1980’sMandate of atleast E25 in all vehicles established.June 20072003Flex Fuels introduced. cars may run on E100, on E25, or any combination if the 2October 2008Brazil has 33,000 gas stations offering ethanol next to gasoline1990Brazil automotive industry reduces to only 10% due to ethanol shortage

16. Food vs. Fuel and EnvironmentAnti-energy cropsCompete w/ food crops for landCompete for rural investment which might be used to raise food cropsUse food as a feedstock for industry rather than food for people and their animalsCompete for water supplies-fermentation requires large quantities of water (16 litres/litre of alcohol)Energy crop enthusiastsEnergy crops are in addition to food cropsEnergy crop programmes will reduce oil import bills and save foreign exchange- which might be used to buy necessary food on the world grain market1980 arguments

17. Food vs. Fuel and EnvironmentCurrent ArgumentsAnti-energy cropEnergy crop enthusiastsCattle and food crops being displacedDeforestationSoil DegradationOctober 2008: speculation that 400,000 jobs will be lost due to growing mechanizationIncreased mechanization will decrease GHG emission reductionFood + FuelSugarcane mills are self-sufficient. 1975-2000: Deployment of gasoline w ethanol reduced carbon emissions by 100 million tons.Brazil is energy independentGovernment promises that not a single stalk of sugar cane will be found in the rainforest

18. Source: Unicamp 2007

20. MultigrainOwned by Japan’s Mitsui & Co Ltd; U.S. CHS Inc.; and Brazil’s PMG Trading SAPres. Paulo Garcez: “We plan to sell the ethanol on the local market initially and, in a 2nd phase, export it” 2003: bought 1st farm in Bahia for cotton and soyOwns Xingu, large farm (50mi width)Invested over $400mil just in land

21. XinguOwned by Multigrain, large farm (50mi width)Invested over $400mil just in landIncludes:Grain crushing plant200 houses for workersSchoolHospitalChurch

22. XinguSelf sufficient in waterPlans for self sufficiency in electricity:Construct $350mil ethanol mill cogeneration thermal energy plant

24. Sustainability CriteriaCertification process: could impose new barriers for Intl tradeZoning: Adequate areas determined by: a) soil and weather adequacy b) topography c) water availability and requirements d)sugarcane can’t be planted in sensible ecosystems e) areas where other crops have been produced

25. Agro-environmental ProtocolSão Paulo

26. FutureEurope: Discussion of certification process

27. Majority of growth to take place in Centre-South