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The alcohol economy: Fuel ethanol and the Brazilian experience
Book reviews Fuel from biomass THE ALCOHOL ECONOMY: Fuel ethanol and the Brazilian experience
by H. Rothman, R. Greenshields and F. Rosillo Call6
Frances/=)inter, London, 1983, 198pp, £13.75 This very readable book analyses the National Alcohol Programme (PNAPrograma National do Alcool), started by the Brazilian government in 1975. It starts with an analysis of factors which forced Brazil to start an ambitious national programme to produce ethanol, which can be used as a fuel for cars. The percentage of foreign exchange needed to import crude oil rose from 9% of the total export earnings in 1970 to 47% in 1980 and one of the major reasons for initiating an alcohol programme has been the overwhelming dependence of the Brazilian economy on road transport. The use of alcohol as a blending agent (up to 5%) with petrol dates back to a government decree of 1931.
Roots to alcohol The various alternative biomass routes to produce alcohol (from sugarcane, sorghum, cassava root and babassu nut) and their comparative merits in terms of land requirement to produce one litre of alcohol, or the alcohol obtainable per hectare of land, have been analysed clearly. The ethanol obtainable per hectare of land (at a given yield) is 6 000 litres in the case of sugarcane, 500 litres in the case of wheat and 200 litres from babassu nuts. In 1981 Brazil produced 8.892 million m 3 of alcohol and of this, 8.60 million m 3 came from sugarcane and 0.271 million m 3 from cassava.
Job creation The book discusses in detail the objectives of the PNA. One of the most important social benefits accruing from
E N E R G Y POLICY September 1983
the Brazilian National Alcohol Programme has been employment creation at the farm level as alcohol production is very capital intensive. One of the major reasons for the successful implementation of the Brazilian Programme has been its clear cut objectives and strategies of action. By 1985 petrol with 20% pure anhydric alcohol (for the car industry) and pure hydrated alcohol (for the chemical sector) will be produced according to the plan. By 1985 about 13 million cars will be on the road (compared to 7 million in 1977), of which 4 million may be alcohol fueled. The ethanol needed to satisfy these targets will be 22 million m 3.
study by ILO 2, it has generated employment. The new results of the ILO study complement the analysis given in the book. The eighth chapter on 'The Brazilian experience and the Third World' will be useful for other countries planning to learn from the Brazilian alcohol programme. The most positive aspect of P N A will be the development and capability building in biotechnology.
Policy c o m m i t m e n t
As explained in the book, there may be mileage to be exploited by other Third World states and Brazil cooperating in joint research and development programmes on fermenting substrates other than sugarcane. The Brazilian programme is not trouble free and cannot be duplicated in toto elsewhere, but it does clearly point out that a developing nation can pioneer the development and application of techEnergy balance nology for national needs on a scale as The cost and energy balance of alcohol, yet unmatched elsewhere. Other which is a controversial area, has been developing countries wanting to learn dealt with clearly and without much from P N A have to examine the prosubjective bias. It is shown that the gramme in its total setting - industrial, favourable energy balance reported for political, economic and technical. biomass-derived alcohol in Brazil is Foremost is the political commitment due to the country's circumstances, with clear-cut policies, strategies and such as low labour costs, use of crop an operational programme to generate residues and low fossil fuel energy costs alcohol, and the dovetailing of of agriculture in Brazil. Any country industrial planning to produce cars to embarking upon an alcohol fuel pro- suit the changing nature of available gramme needs to carry out net energy fuel. assessment studies in its national This is an informative book which context. will be useful to both researchers and policy planners.
Bio-fuel economics The food-fuel conflict concerning alcohol has been discussed from all perspectives. This analysis is supported by a study 1 which shows that biomass fuels, like alcohol, will have the greatest potential to satisfy the energy demands of the relatively undeveloped tropical countries where low per capita energy consumption and labour costs are coupled to relatively high biomass production potentials. In developing countries biofuels can help to make agriculture more profitable. The overall impact of the Brazilian alcohol programme has been to conserve foreign exchange and, as shown in a recent
B. Bowonder Centre for Energy, Environment& Technology, Administrative Staff College of India Hyderabad 500 475, India
U.R. Benemann, 'Biomass energy economics', The Energy Joumal, Vol 1,
No 1, 1980, pp 107-131.
2A. Pereira, 'Employment implications of ethanol production in Brazil', Intemetiona/ Labour Review, Vol 122, No 1, 1983, pp 111-127.
279
by H. Rothman, R. Greenshields and F. Rosillo Call6
Frances/=)inter, London, 1983, 198pp, £13.75 This very readable book analyses the National Alcohol Programme (PNAPrograma National do Alcool), started by the Brazilian government in 1975. It starts with an analysis of factors which forced Brazil to start an ambitious national programme to produce ethanol, which can be used as a fuel for cars. The percentage of foreign exchange needed to import crude oil rose from 9% of the total export earnings in 1970 to 47% in 1980 and one of the major reasons for initiating an alcohol programme has been the overwhelming dependence of the Brazilian economy on road transport. The use of alcohol as a blending agent (up to 5%) with petrol dates back to a government decree of 1931.
Roots to alcohol The various alternative biomass routes to produce alcohol (from sugarcane, sorghum, cassava root and babassu nut) and their comparative merits in terms of land requirement to produce one litre of alcohol, or the alcohol obtainable per hectare of land, have been analysed clearly. The ethanol obtainable per hectare of land (at a given yield) is 6 000 litres in the case of sugarcane, 500 litres in the case of wheat and 200 litres from babassu nuts. In 1981 Brazil produced 8.892 million m 3 of alcohol and of this, 8.60 million m 3 came from sugarcane and 0.271 million m 3 from cassava.
Job creation The book discusses in detail the objectives of the PNA. One of the most important social benefits accruing from
E N E R G Y POLICY September 1983
the Brazilian National Alcohol Programme has been employment creation at the farm level as alcohol production is very capital intensive. One of the major reasons for the successful implementation of the Brazilian Programme has been its clear cut objectives and strategies of action. By 1985 petrol with 20% pure anhydric alcohol (for the car industry) and pure hydrated alcohol (for the chemical sector) will be produced according to the plan. By 1985 about 13 million cars will be on the road (compared to 7 million in 1977), of which 4 million may be alcohol fueled. The ethanol needed to satisfy these targets will be 22 million m 3.
study by ILO 2, it has generated employment. The new results of the ILO study complement the analysis given in the book. The eighth chapter on 'The Brazilian experience and the Third World' will be useful for other countries planning to learn from the Brazilian alcohol programme. The most positive aspect of P N A will be the development and capability building in biotechnology.
Policy c o m m i t m e n t
As explained in the book, there may be mileage to be exploited by other Third World states and Brazil cooperating in joint research and development programmes on fermenting substrates other than sugarcane. The Brazilian programme is not trouble free and cannot be duplicated in toto elsewhere, but it does clearly point out that a developing nation can pioneer the development and application of techEnergy balance nology for national needs on a scale as The cost and energy balance of alcohol, yet unmatched elsewhere. Other which is a controversial area, has been developing countries wanting to learn dealt with clearly and without much from P N A have to examine the prosubjective bias. It is shown that the gramme in its total setting - industrial, favourable energy balance reported for political, economic and technical. biomass-derived alcohol in Brazil is Foremost is the political commitment due to the country's circumstances, with clear-cut policies, strategies and such as low labour costs, use of crop an operational programme to generate residues and low fossil fuel energy costs alcohol, and the dovetailing of of agriculture in Brazil. Any country industrial planning to produce cars to embarking upon an alcohol fuel pro- suit the changing nature of available gramme needs to carry out net energy fuel. assessment studies in its national This is an informative book which context. will be useful to both researchers and policy planners.
Bio-fuel economics The food-fuel conflict concerning alcohol has been discussed from all perspectives. This analysis is supported by a study 1 which shows that biomass fuels, like alcohol, will have the greatest potential to satisfy the energy demands of the relatively undeveloped tropical countries where low per capita energy consumption and labour costs are coupled to relatively high biomass production potentials. In developing countries biofuels can help to make agriculture more profitable. The overall impact of the Brazilian alcohol programme has been to conserve foreign exchange and, as shown in a recent
B. Bowonder Centre for Energy, Environment& Technology, Administrative Staff College of India Hyderabad 500 475, India
U.R. Benemann, 'Biomass energy economics', The Energy Joumal, Vol 1,
No 1, 1980, pp 107-131.
2A. Pereira, 'Employment implications of ethanol production in Brazil', Intemetiona/ Labour Review, Vol 122, No 1, 1983, pp 111-127.
279