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Seminar on Brazil's Ethanol Experience and its Transferability

The World Bank is firmly committed to supporting developing countries in clean and renewable energy development.  We continue to look for sustainable technologies and delivery options – including financial resources – for our client countries.  To this end, on April 25, 2006, the Bank and the Brazilian Government organized a seminar on Brazil's ethanol program on the prospects for transferring the program to other countries.

Unlike many renewable energy programs, Brazil’s fuel ethanol industry is not a pilot program nor is it new.   More than 30 years ago, Brazil made a decision to invest in ethanol production as a way of reducing its reliance on imported petroleum, and to diversify its sugar industry by providing a market for both sugar and ethanol.  Today, ethanol accounts for more than 40 percent of the gasoline-ethanol market in Brazil, compared to only about 3 percent in the U.S., even though the ethanol programs in the two countries are of similar magnitude.  The Bank’s recent analysis ESMAP Technical Paper No. 312 shows that Brazil is the only country that has been able to establish a competitive ethanol industry without significant direct or indirect government support, and that this has been achieved largely due to Brazil's success as the lowest-cost sugar producer in the world.  

So how did Brazil become the lowest-cost sugar producer in the world and also create the world's largest renewable energy program?  The objective of the seminar was to discuss the factors that led to Brazil's success and to find out to what extent Brazil’s experience is transferable to other countries.

Main Discussions:

(1) What policies has the Government of Brazil used to support the ethanol industry;

(2) How has Brazil lowered the costs of sugar to become the lowest-cost ethanol producer in the world;

(3) How has the private sector been involved as mill owners, investors, and financiers; and

(4) How have consumers responded both with the purchase of ethanol and "flex-fuel" vehicles and in the purchase of ethanol.

The World Bank would like to thank the Government of Brazil and, in particular, the Minister of Agriculture Rodrigues, for taking the time to participate in the Seminar and his assistance in organizing the panel of experts on Brazil’s ethanol industry. 

Please find below some of the presentations that were shared with the audience:

 

EthanolIndustrialProcessing.ppt  2.4 MB

PetrobrasEthanol.ppt  2.6 MB

Biofuels: Global Potentials & Implications for Development 1.23 MB

 

Sugar vs Ethanol 0.11 MB

 

 

Please note that other presentations have not been included due to the size of the files and the time that would be required for downloading.

 

 

 




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