AUGIWorld Magazine November/December 2007

On The Page Back The Brazilian Model No, this is not an article about Daniela Cicarelli and her battle with YouTube. Since 1975 Brazil has actively followed a plan for energy independence called The National Alcohol Program, commonly called “Pro Alcool.” It appears to be very close to reaching its stated goal. In 1973, oil supplies to the west were affected by an oil embargo brought about as a result of the Yom Kippur war in the middle-east. At that time, Brazil relied on that region of the world for 80 percent of its oil. Its economy was rocked by the sudden rise in energy prices. Government agencies evaluated Brazil’s assets and determined that most of its energy needs could be met with the domestic production of ethanol. Thus the Pro-Alcool program was born. In 1979, the second oil-shock began when the Iranian Revolution occurred, and in 1980, Iraq invaded Iran starting a war that lasted 10 years. Gas prices shot up again and really put the Pro-Alcool program into high gear. Today, ethanol provides 30 percent of the fuel for 4,000,000 cars—and the market is rapidly growing. Ethanol is not a new idea; it is as old as the existence of beer and whiskey. Henry Ford called it the “fuel of the future” in 1930. The first Fords were designed to run on pure ethanol. Brazil has been working at this plan for more than 30 years. Brazil is one of the world’s largest producers of cane sugar which is one of, if not the best, feedstock for ethanol production. Over the years, the country has tripled the yield of ethanol per acre. The Brazilian growing season is long and the weather is mild. The mild climate offsets the known issue of difficult cold weather starting of 100 percent ethanol fueled vehicles. The availability of “flex-fuel” cars in Brazil has caused a big resurgence in the program in the last five years. Depending upon price or needs, Brazilians can buy pure ethanol or gasoline (which is 25 percent ethanol by law). True dual- fuel technology now exists thanks to Fernando Damasceno, chief engineer at the Brazilian unit of Italian car parts company Magneti Marelli. Over one quarter of Brazilian cars on the road are now equipped with the “Damasceno device,” letting you mix the fuels in the tank at your convenience. Basically, if you want to go fast and save money, buy pure ethanol at 50-70 percent the price of gas and get 5-9 percent more horsepower! David Kingsley The Brazilian edge The downside in Brazil Even with all of these advantages, the Brazilian ethanol industry is not profitable. Government subsidies, reportedly ranging from $9-16 billion, have kept the industry afloat. Brazil’s tax rates are comparable to the US; the population is 1/3 smaller than the US, and of those, the percentage of taxpaying citizens is lower, so the fuel tax burden is heavier on the individual, especially the lower income driver. The substance “vinasse” is a liquid byproduct of cane sugar ethanol production. Disposing of it is a major environmental problem. For every liter of ethanol, 10-15 liters of vinasse are produced. It is highly acidic and consumes oxygen at a very high rate when exposed to a body of water. It quickly and severely damages aquaculture. A viable low-impact method of disposal is still being sought. Bagasse is the stumps, roots, and excess leaves left on the ground after the harvest. Dried bagasse is burned to generate electricity for processing and to dry fresh moist bagasse. Excess electricity is produced and sold to offset processing costs. The burning of raw bagasse is very dirty and large spikes in human respiratory ailments appear seasonally throughout the population. The ethanol market is subject to the price of sugar in the food market. In the late 1980s, the high price of sugar led the mills to produce more sugar than ethanol. Flex fuel vehicles were not available at that time. Brazilians had to decide whether to buy a pure gas, or pure ethanol car. Drivers who had invested in ethanol fueled vehicles were left high and dry by ethanol shortages. The Pro-Alcool program’s image was badly damaged, and Brazilians all but stopped buying ethanol fueled cars throughout the ‘90s. Cane sugar has a one-year crop cycle and thus is harvested annually. Sugar field workers have gainful employment for only two months of the year. This gives the corporate farmers complete control of the labor market. Unfair labor practices, including near slavery and child labor, are widely tolerated. Why can’t we be like Brazil? There are a few reasons the Brazilian model might not work in the US. We raise corn, not sugar cane. Making ethanol from corn is a significantly more complex process. For several decades, oil lobbyists have prevented even seemingly simple and sensible bills from becoming law if there is any (continued on page 43) 44 w w w. A U G I . c o m http://www.AUGI.com

Table of Contents Feed for the Digital Edition of AUGIWorld Magazine November/December 2007

AUGIWorld Magazine November/December 2007 Table of Contents The CAD Manager Education & Training Finance Training Google Earth: Now Showing in AutoCAD Civil 3D Get Your Input Here A Good First Impression, Part 2 Share and Share Alike Who's Using Revit MEP? Ready… Get Set… Properties! On the Back Page: The Brazilian Model

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