1. By: Marcelo Dodson marcelododson@gmail.com

2. Brazilian Ethanol Chronological Facts Brazil was discovered in April 22,1500 In 1532,Martim Afonso de Sousa arrived in Brazil brining sugarcane stems. For more than 200 years, the sugarcane production focused on three majors products1. Sugar2. Animal Feedstock3. Cachaa brandy1530 3. Brazilian Ethanol Chronological Facts 5% (E5) blend of ethanol and gasoline was added During the 2nd World War, the Northeast Region used a 40% (E40) blend.15301931 - 1945 4. Brazilian Ethanol Chronological Facts The 1973 oil crisis National Alcohol Program is launched in1975 (PROALCOOL)15301931 - 19451973-1975 5. Brazilian Ethanol Chronological Facts Percentage of cars manufactured with Ethanol Engineering % 90 019861990s Source: Adapted from Hofstrand (2009)15301931 - 19451973-1975 1986 1990s 6. Brazilian Ethanol Chronological FactsPercentage of sales of FLEX FUEL vehicles%90 0 20032010 Source: Adapted from Seelke & Yacobucci (2007)15301931 - 1945 1973-1975 1986 1990s 2003 2009-2010 7. Brazilians Sugar Cane Production System 8. Brazil enjoys the fact that it has two distinct harvest periods1. North-Northeast regionFrom November to April 2. Center-South From May to November 9. Source: Di Ciero (2010) 10. Brazil has approximately 63.48 million hectares (151 million acres) for theexpansion of the sugarcane (Brazil/ Presidencia da Republica, 2009).This regulation considers environmental, economic, and social aspectsto guide both sustainable expansion of sugarcane production and investments inthe biofuel sectorZAE Cana excludes areas with slope bigger than 12%, forest (i.e. Amazonforest and Pantanal Swamp), and other areas. 11. Sugar millsIndependent distilleries15157 248 Mills with distillery plants Source: MAPA (2010) 12. Distribution per region 13. (336.276,100 tons)53,8%46,2%27.67 billion Liters 38,675,500 Tons 14. Ethanol (Billion of liters) Production ConsumptionExport 15. 2010 GDP: 7.5%2010 unemployment: 5.3% Gasoline has 22-25% of ethanol FFV sales represent roughly 90% of new vehicle sales by end of year. By the year 2013 more than half of the Brazilian fleet will be FFV At the pump, he end-user can decide between gasoline or Ethanol by multiply the gasoline price by 0.7. 16. The predominant mode of ethanol transport is road system because itscompetitiveness on short routes and low load conditions. In general, the plants are located,in agricultural areas away from major transportation routes and, individually, have noscales of production that enable the use and investment in other modes of transport.http://caminhoesracing.blogspot.com/2009/09/treminhao.html 17. Railroad systemIn 2008, the Center South region concentrated 68.3% of thenational ethanol railroad system and seven from 10 main railroadsterminals are destined to receive the fuel. The average railwaydistance in the region were 900 km (between 500 and 2,300 km),and the annual volume transported is approximately 1.6 millioncubic meters (moving between 50 thousand and 400 thousandcubic meters in the main section)http://www.ocoruja.com/index.php/2009/o-brasil-esta-embarcando-nos-trens/ 18. Brazil has approximately 5,700 miles of pipelines forcombustive transport 19. Investment: U.S. $ 1.2 billionExpected costs reduction: 10%Volume: 12 million m3 of ethanol(Transpetro, 2010) 20. Source: UDOP (2010) 21. In Brazil, the ethanol marketing is become more concentrated. Seven major groups already dominate 67% of the ethanol sales in Brazil.Foreign control of Brazilian ethanol and sugar companies is now up to 22 percentMills 3923 9 13Sugar 5.24 2.3(million tons )Ethanol 3.9 2.23 1.5(billion liters) the largest global the largest Braziliansugarcane-bagasse-sugar, ethanol and based electric energy bioenergy companygenerator, 22. The sugarcane industry is the biggest jobs generator of the Brazilian agriculture sector. Employees 629 thousand people The industry will generate others 170 thousand jobs in the following yearsLaws and Agreements The Brazilian labor law The Brazilian labor ministry published the regulation 31 National commitment for the improvement of labor conditions insugarcane production The result of these actions reduced the child labor in the sugarcaneindustry in 86% (from 14.7% to 3.3%) of temporary workers and almostto 100% of permanent workers, from 1992 and 2005 (Balsadi, 2007). http://www1.folha.uol.com.br/folha/galeria/imagemdodia/p_20070421_08.shtm 23. BRAZIL U.S.A 24. BRAZILU.S.A Description Mills Ethanol Jobs GDPFleet 7.5 Billion61 millionBrazil453630,000 26 billionGallonsvehicles 13 Billion246The US204400,000 53.3 BillionGallons million 25. BRAZIL U.S.A (Hofstrand, 2009) 26. marcelododson@gmail.com