Brazilian ethanol approved by U.S. Agency
O Estado de S. Paulo
The Brazilian ethanol achieved yesterday the greatest victory of recent times: the approval to enter the United States and, subsequently, the global market. The Environmental Protection Agency (EPA) qualified the sugarcane ethanol as an advanced fuel that reduces the emission of carbon dioxide (CO2) by 61% compared to gasoline. The decision opens a market of between 15 billion and 40 billion liters for the Brazilian biofuel in the USA in the next 12 years.
"The average and long term impact of that decision is even more important than a possible reduction of US import tax for the ethanol, assessed the Head Official of the Union of the Sugarcane Industry (Unica) in Washington, Joel Velasco. The national plants worked for two years to convince the American agency of the benefits of the ethanol to reduce the emission of greenhouse gases.
The new American legislation establishes a minimum consumption of biofuels above 45 billion liters this year. The forecast is to increase the volume to up to 136 billion liters in 2022. A part of the 80 billion liters shall be reserved for the advanced biofuels, which are the cellulosic biofuel, the biomass diesel, and others. The Brazilian ethanol now has a guaranteed slice of 15 billion liters, a volume three times greater than all ethanol exported by Brazil in 2008.
In order to be considered an advanced biofuel, it is required that such fuel reduces the CO2 emissions in at least 40% compared to gasoline. The classification into "advanced" is a great victory for the Brazilian fuel. The percentage of 61% established by the EPA was very near what was requested by Unica, which said that the ethanol reduces the CO2 emissions by 72%. Corn ethanol, on its turn, reduces the emissions by 20% compared to gasoline.
Corn producers have a strong lobby in the US Congress for their fuel. In order to fight such protectionism, Unica has put up a structure in Washington and in Brazil with scientists, professors and lobby specialists. The next step of the Unica is to knock down the USA ethanol import tax that is at US$ 0.54 per gallon and expires at the end of the year.