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Brazil shines as example for biofuel development(BNamericas.com Via Thomson Dialog NewsEdge)Brazil is a world reference for the development of the biofuels markets because of its well-developed domestic ethanol fuel market and recent biodiesel initiatives, a plenary session at the World Economic Forum held in So Paulo from April 5-6 concluded. Brazil has been using fuel ethanol made from sugar cane both as an additive to gasoline and as a stand-alone fuel since the 1970s. Currently ethanol makes up 20% of gasoline sold by fuel retailers, while vehicles that run only on ethanol account for some 16% of the country's 23-million vehicle fleet. Several countries have started looking closely at Brazil's energy alternatives as international oil prices have surged recently because of dwindling oil reserves expected to last some 40 years as well as pollution reduction agreements under the Kyoto Protocol. The result is increasing investments in new ethanol production projects and the start of production of biodiesel from tropical oil seed crops such as soybeans, castor and palm. According to Brazil's development, industry and trade minister Luiz Furlan, about 50 new sugar ethanol production plants are being built, while delegations of several countries have visited Brazil to get to know the country's ethanol fuel program. The most recent visit was from California, and Brazil's government has been holding talks with South Africa to explore the possibility of working with that country to offer biofuel to the rest of Africa, Furlan told delegates at the forum. Furlan will also be meeting with Japanese officials during his two day official trip to Japan from April 10-11 He is scheduled to meet with Japanese government authorities and with Japan Bank for International Cooperation (JBIC) president Kyosuke Shinozawa. BIODIESEL DEVELOPMENT Meanwhile, Brazil is pushing forward its biodiesel program to guarantee a 2% mixture starting 2008, which will rise to 5% by 2013. Federal hydrocarbons and biofuels regulator ANP held the second biodiesel auction on March 30 in which federal energy company Petrobras (NYSE: PBR), Brazil's largest fuel retailer, bought over 93% of the 170 million liters (Ml) offered to be delivered, mostly in 2007. ANP wants to guarantee that there is enough supply for the 800Ml of biodiesel once the obligatory mixture starts. At the same time Brazil's lower house president Aldo Rebelo and other lawmakers proposed the creation of a special bioenergy agency to define specific policies for the sector, the lower house's official news service reported. Brazil's government is using its biodiesel potential to create jobs in poor rural areas by giving tax breaks for companies that buy oil seeds from small producers. Brazil's President Luiz Incio Lula da Silva has also said he wants to help other poor countries to also produce biofuels to take advantage of rising demand in developed countries. |