Frequently Asked Questions about Sugarcane Ethanol
How does the use of ethanol impact gas prices?
When added to gasoline, ethanol helps keep fuel prices competitive and more affordable. Recent studies have shown that if ethanol were entirely removed from the fuel supply, gasoline prices would rise by 15-30% at the pump. Used as an additive, ethanol is not only an effective fuel extender which makes gasoline supplies last longer, but also an octane booster.
How does sugarcane ethanol production impact food production and prices?
Cane ethanol production has not impacted the production or price of food in Brazil. With only 1% of its arable land dedicated to sugarcane for ethanol production, Brazil has been able to replace half of its gasoline needs with sugarcane ethanol - making gasoline the alternative fuel. While cane production has increased steadily in recent years, food production in Brazil has grown dramatically without any material price increases. In fact, grain and oilseed harvest has doubled in the last ten years.
How does ethanol production impact the environment?
Cane ethanol reduces greenhouse gas emissions by up to 90% compared to gasoline, a reduction unmatched by any other biofuel produced with existing technology and comparable to what is attained with second-generation biofuels.
Sugarcane also captures more carbon when compared to crops such as corn or soybeans because it is a unique semi-perennial crop only replanted every six years. In addition, sugarcane actually generates a carbon credit, capturing significantly larger amounts of carbon than the quantities originally stocked on degraded pastures - the expansion area of choice for sugarcane in Brazil.
How much energy does ethanol production consume?
When the entire process is considered, from the planting of sugarcane to the use of ethanol as a motor vehicle fuel, sugarcane ethanol produces 9.3 units of clean, renewable fuel for every unit of fossil energy utilized. Ethanol produced from other feedstocks such as sugarbeets, cereals and corn, manages a 2-to-1 ratio today.
Does the production of sugarcane ethanol in Brazil impact the Amazon Rainforest?
No. Sugarcane for ethanol is harvested more than 1,550 miles from the Amazon-roughly the distance between New York City and Dallas, or between Paris and Moscow. Ninety percent is harvested in South-Central Brazil and the remaining ten percent is grown in Northeastern Brazil.
Less than 0.2% of Brazil's total sugarcane production is processed at four mills in the Amazon that were built more than 20 years ago - at a time when the government provided fiscal incentives to set up industrial facilities in this region.
Will Sugarcane expansion displace other agricultural activities into the Rainforest?
No. According to the Brazilian National Institute for Spatial Research (INPE), about 65% of recent sugarcane expansion took place on pastures, mostly degraded, in the Center - South of the country. Growing sugarcane in these areas does not increase competition for land or displace other crops.
Could sugarcane ethanol be produced in countries other than Brazil?
Yes, more than 100 countries grow sugarcane and most could produce and use ethanol, repeating Brazil's successful experience. According to the Food and Agriculture Organization of the United Nations (FAO), only 10% of the world's 200 million hectares (excluding forest and protected areas) available and suitable for sugarcane production are actually used. Most sugarcane producing countries are tropical, developing countries that would benefit tremendously from an opportunity for significant economic development.
The production and use of cane ethanol creates jobs, fosters technological development, allows for the introduction of cheap renewable electricity in rural areas, cuts down on oil imports, and provides new export opportunities. Ethanol production in 100 countries would also enhance energy security by reducing the world reliance on only 20 oil producing countries.
