Brazil Biofuel Case Study

There are so many iconic things about which Brazil can boast. It hosts the mother of all carnivals in Rio de Janeiro; it has the world's largest rainforest, the Amazon, and Pelé, one of the world's greatest footballers of all time, also hails from that country. But, there are other, likely lesser known, facts about which the country should be equally proud. Approximately 46% of Brazil's energy comes from renewable sources, making it one of the least carbon-intensive countries in the world. If you look at electricity alone, 83% is from renewables. A significant proportion of Brazil's renewable energy comes from biofuels produced by biomass. Let's take a look at the Brazil BioFuel Case Study - what are the potentials and benefits of Brazil's BioFuel? Are there environmental concerns and impacts? Read on to find out!

Brazil biomass potentials

Brazil is rich in biomass which can be used to manufacture biofuel. This is mainly due to its extensive production of plantation crops such as sugarcane. As a result of its large size and the presence of vast savannas, Brazil can increase the production of these crops without risking Deforestation of the Amazon rainforest. In fact, the potential area of crop expansion has been estimated at 1,190,000 km². In addition to agricultural crops, Brazil's biomass potential includes agricultural waste and residues, forestry residue, wood-based industry residue, animal agricultural residue and other types of waste.

Currently, for each crop, about 625 million tonnes of biomass is crushed to produce about 27 billion tonnes of ethanol and 38.7 million tonnes of sugar. It has been estimated that by 2030 more than 2,458 million tonnes of biomass resources will be available, mainly from plantation crops but also resources from forestry systems and agricultural residues. As a result of this massive biomass potential, it is expected that the country will be able to have additional opportunities for further expansion of its biofuel into global trade.

Brazil sugarcane biofuel

Sugarcane has been grown for about 500 years in Brazil, and the country is the largest sugarcane producer in the world.

Fig. 1 - an extensive sugarcane plantation in Brazil

Sugarcane is used not only to produce sugar but also probably, more importantly, as the primary feedstock in producing the country's biofuel, ethanol. Sugarcane biomass has a high sucrose content, which makes it an excellent source for making ethanol. Ethanol and sugar are produced together, and sugar production has followed the evolution of ethanol production. However, ethanol production has increased more than sugar production. Ethanol from sugarcane is produced either by chemical or microbiological processes. Microbiological processes are the primary processes used in Brazil.

While Brazil exports 70% of its sugar, 75% of the ethanol it produces remains within the country. This is because, in Brazilian law, gasoline must be mixed with 27% ethanol to produce a blended fuel. In addition, cars in Brazil can also use 100% ethanol as fuel.

Brazil biofuel production

The first attempt at biofuel production actually began in the 1930s, with production peaking during World War II (1 September 1939 - 2 September 1945). This is because global supplies of oil were not guaranteed. As a result, it was mandatory to mix ethanol (made from sugarcane) with oil. After the end of World War II, ethanol production declined as cheap gasoline could once again be sourced for fuel.

In 1973, as a result of the global oil crisis, Brazil decided to increase its ethanol production from sugarcane through a biofuel programme. Consequently, the National Ethanol Programme 'Pró-Álcool' (Programa Nacional do Álcool in Portuguese), was launched in November 1975. The ethanol produced in the programme's initial phase was blended with gasoline. Ethanol production grew from 0.6 billion in 1975/1976 to 3.4 billion by 1979/1980.

After the second oil crisis in 1979, there was a shift from using ethanol as just an additive to gasoline to using it as fuel for cars. Therefore, the first commercial neat ethanol-powered car was launched that year, and during the 1980s, most cars sold were ethanol-fueled.

At the end of the 1980s, oil prices declined, and sugar prices increased, causing a decrease in ethanol production which caused shortages. The demand for ethanol-powered cars reduced, and the Pró-Álcool programme ended.

In 2003, the flex-fuel technology, where engines run on a mix of ethanol or gasoline, once again expanded ethanol production. By 2011, 83% of all new cars sold in Brazil had flex-fuel technology. In May 2013, the government implemented a policy which provides incentives to increase ethanol production.

Fig. 2 - example of a flex-fuel car in Brazil

Today, Brazil is a global leader in ethanol production- second to only the US. In fact, ethanol production has increased 45 times since 1975, while the price of ethanol has also declined by 70%. Since the country developed its ethanol biofuel programme almost 50 years ago and has most of its cars burning biofuel, it is considered the world's first sustainable biofuel economy.

Fig. 3 - Costa Pinta production plant in São Paulo produces both sugar and ethanol fuel

Brazil biofuel policy

To meet its Nationally Determined Contributions (NDCs) under the Paris Agreement, Brazil launched its National Biofuels Policy (RenovaBio) in December 2017 as Federal Law no. 13.576/2017. The policy focuses on increasing the use of biofuels in Brazil and improving Energy Security while reducing greenhouse gas (GHG) emissions. In addition, RenovaBio facilitates the predictability of the country's fuel market by ensuring that there is always a consistent energy source. Furthermore, it gives incentives to producers and issues carbon-reducing credits called biofuel Decarbonization Credit (CBIO).

Brazil biofuel benefits

The following are some, not all, of the benefits of biofuel production in Brazil:

1. Adding ethanol instead of lead to gasoline has significantly lowered air pollution as it has lowered carbon monoxide, hydrocarbons and sulphur emissions.
2. Using sugarcane-based ethanol has resulted in a 91% reduction in greenhouse gas emissions compared to gasoline. This helps to mitigate global warming.
3. The production of biofuels has created both direct and indirect employment for many Brazilians, particularly in rural areas.
4. In addition to creating jobs, the biofuel industry has contributed to increasing the country's GDP.
5. The production of biofuels has improved Brazil's Energy Security by contributing to its reduced dependence on externally sourced energy.

Environmental and social concerns and impacts

As you might expect, there are environmental and social impacts that go with biofuel and its production. Let's look at some, but not all, of those impacts.

Environmental concerns and impacts

(Potential) environmental concerns and impacts include:

• Sugarcane-produced ethanol provides renewable energy and it is less carbon-intensive than oil.
• Sugarcane-produced ethanol has a lower energy balance than, e.g. fossil fuels.
• Bioethanol reduces greenhouse gas emissions compared to gasoline.
• Bioethanol reduces urban air pollution.
• While concerns were raised about water overuse and pollution, soil erosion and potential contamination from (excessive) fertiliser use, several studies have shown that the impacts are very limited and, if Brazil continues in this way, it should not become a problem in the future.
• Other concerns raised were on field burning, a process that happens shortly before harvesting so that the workers are safe from sharp leaves, snakes and other harmful animals, and the ash will fertilise the land. However, fertiliser and natural pesticide advancements make field burning obsolete.
• Potential Deforestation - a well-founded concern as en-masse Deforestation happens in the Amazon rainforest in Brazil. However, a government-issued decree states that sugarcane growth must be restricted in environmentally sensitive areas. While the Brazilian government does not foresee issues in the near future, this cannot be guaranteed.

Social concerns and impacts

Social concerns and impacts include:

• Sugarcane production benefits some of the poorest people by providing above-average minimal wages and formal jobs with benefits.
• The food vs fuel debate - there are concerns raised that the lucrative business of biofuel production means that this type of land use will become favoured over food production, which could potentially lead to global increased food prices.