Brazilian sugarcane ethanol: lessons learned[1]

Ethanol derived from sugarcane is an efficient and renewable biofuel that appears as a solution to the problems of rural development, diversification of energy sources, and fossil fuel-saving, as well as contributing to the reduction of local pollutants from vehicle exhausts and net reductions in greenhouse gas (GHG) emissions. During the 30 years of the Brazilian Alcohol Program, Brazil has accumulated a significant amount of experience in the various aspects of sugarcane ethanol production. This paper discusses this experience and the lessons learned, with special attention paid to the following aspects: (1) private investments now fund alcohol mill construction, eliminating the need for subsidies or other government incentives (so there is no influence of the sunk capital investments made in the past), and it is competitive with gasoline without the need for government subsidies to the industry; (2) the favorable energy balance of ethanol; (3) there is no competition for land with food crops; (4) the quality of jobs and social impacts; (5) the compatibility of existing fleets with ethanol-gasoline blends; (6) adequate legislation can control local environmental impacts associated with feedstock production and biofuel manufacture; (7) perspectives for the replication of the Brazilian ethanol program in other developing countries.