The US is taking small steps towards the use of ethanol, but its process, relying on corn, is lengthier and more expensive. Over the past three decades Brazil has worked to create a viable alternative to gasoline. With its sugarcane-based fuel, the nation may become energy independent this year. Brazil’s ethanol program, which originated in the 1970s in response to the uncertainties of the oil market, has enjoyed intermittent success. Still, many Brazilians are driving “flexible fuel” cars that run on either ethanol or gasoline and allow the consumer to fill up with whichever option is cheaper – often ethanol. Countries with large fuel bills such as India and China are following Brazil’s progress closely.
Running cars on carbohydrates instead of fossil fuels is not a new idea, and ethanol has drawbacks, but the fuel offers an attractive alternative as oil prices climb.
At current prices, Brazil can make ethanol for about $1 a gallon, according to the World Bank. That compares with the international price of gasoline of about $1.50 a gallon. Even though ethanol gets less mileage than gasoline, in Brazil it's still cheaper per mile driven. As a result, ethanol now accounts for as much as 20% of Brazil's transport fuel market. The country's use of gasoline has actually declined since the late 1970s. The use of alternative fuels in the rest of the world is a scant 1%.
