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Brazil, US look for an ethanol alliance
Bush's visit will focus on a partnership promoting a fuel that's cleaner, cheaper, and more readily available than oil.
from the March 8, 2007 edition
Page 3 of 3
Exporting Brazil's expertise
"I'll give you the example of Jamaica, we helped them build two distilleries," Mr. Simoes said in a telephone interview. "They import $1 billion of oil. It's a small country and that's a huge figure. Starting this year, they will mix ethanol 10 percent with gasoline and they will save 100 million dollars. Can you imagine what 100 millions dollars is to Jamaica to resolve social problems? They are also exporting this ethanol to the United States so they are not only saving money, they are also receiving an income. This is something very important, imagine the multiplication effect for other countries."
Out here in the fields, the Pilon cousins agree. The family firm will boost ethanol production 20 percent this year in anticipation of increased demand.
They have seen sudden spurts of interest before. But this time they are confident that the time is ripe for Brazil to take its biofuel to the world.
"A lot can go wrong," says Otavio Pilon. "But when the Americans get involved, things take off. Everyone is unanimous. The time is right."
Biofuel Battles
US
No. 1 producer: 4.9 billion gallons last year, up from 3.9 billion in 2005
Domestic consumption: 5.4 billion gallons last year; 4.0 billion in 2005
Corn-based ethanol costs 30 percent more to produce than Brazil's sugarcane-based ethanol
Brazil
No. 2 producer: 4.5 billion gallons last year, up from 4.2 billion in 2005
World's top exporter: 900 million gallons last year
Domestic consumption: About 13 billion liters (3.4 billion gallons) in 2006, expected to double by 2013
Sugarcane-based ethanol is 8 times more energy-efficient than US version
Sources: AP, Ethanol Producer Magazine, Renewable Fuel Association, Reuters
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