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| Fig. 1: Biofuel Production in Brazil from 2009-2022. [1] (Image source: J. Sekula) |
In August of 2023, Brazilian energy company Raizen, was the first in the world to get the ISCC CORSIA Plus certification issued by the International Civil Aviation Organization (ICAO) of Sustainable Aviation Fuel made from ethanol. This demonstrates the type of potential that biofuels could have for the energy transition. Let's take a look at what the biofuel story in Brazil has looked like and where it is today.
In 2021, the world produced 1,747,000 barrels of oil equivalent, per day, of biofuels. [1] This is equivalent to 3.91 EJ per year of energy, or equivalent to the total energy consumption in 2020 of a country like Poland, Vietnam or Malaysia. Compared to Brazil's oil production, which always stands in strong tension with the biofuel industry given price dynamics, biofuels are still small. In 2021, Brazil's oil production was nearly 8x the production of all biofuel in Brazil. [1]
Biofuels play an important role in decarbonizing transport by providing a low-carbon solution for existing technologies, such as light-duty vehicles in the near term and heavy-duty trucks, ships and aircraft with few alternative and cost-effective solutions in the long term.
Brazil produces 21.5% of the world's biofuels, making it the second largest market after the US. [1] Of that production, roughly 2/3 is ethanol and 1/3 is biodiesel. Ethanol has a lower energy density than gasoline, at about 20 megajoules per liter compared to gasoline's 33 megajoules. As a result, vehicle fuel economy declines. It takes 1.5 times more fuel to travel the same distance on ethanol than with a purely gasoline-fueled vehicle. Biodiesel is also less energy dense than its petroleum counterpart, by about 9 percent. That being said, these biofuels are seen as being a carbon-neutral fuel given the biomass used for it stocked carbon first, though questions of land-use (given the biomass that needs to be grown first) and the lower energy density make the concept of carbon-neutrality controversial.
Many economic and political factors led to Brazil's market position: the global oil crisis in the 1970s resulted in favorable regulation and subsidies for bioethanol production, for example. The production and use of biofuels contribute to Brazil's energy security by diversifying the energy mix and reducing dependence on imported fossil fuels. In 2017, RenovaBio was established which is a biofuels program in Brazil aimed at promoting the use of renewable fuels, reducing greenhouse gas emissions, and fostering the development of the bioenergy sector. The program part of Brazil's broader efforts to increase the share of biofuels in its energy mix.
Feedstock: Sugarcane is a primary feedstock for biofuel production in Brazil, particularly ethanol. The cost of cultivating, harvesting, and processing sugarcane contributes significantly to the overall production costs. Fluctuations in sugarcane prices and yields can impact the economic feasibility of biofuel production.
Prevailing gasoline prices in the market: Gasoline and biofuels often compete in the transportation fuel market. When gasoline prices are high, biofuels may become more economically competitive, potentially leading to increased demand for biofuels. Conversely, if gasoline prices drop, biofuels may face more significant challenges in terms of cost competitiveness.
Conversion costs: The conversion of sugarcane into biofuels, such as ethanol, involves various processes like fermentation and distillation. The costs associated with these processes, including energy consumption, equipment maintenance, and labor, are crucial factors. Technological advancements and process optimization can help mitigate some of these costs.
Infrastructure costs: Establishing and maintaining the necessary infrastructure for biofuel production, such as ethanol plants, requires substantial investment. Additionally, the costs associated with transporting and distributing biofuels to end- users contribute to the overall expenses. Improving transportation efficiency and infrastructure can help reduce these costs.
Brazil has set ambitious targets for increasing the share of biofuels in its energy mix, with a focus on expanding both ethanol and biodiesel production. Brazil has been investing in the development of second-generation biofuels, such as cellulosic ethanol. These biofuels are produced from non-food feedstocks, including agricultural residues and dedicated energy crops. Second- generation biofuels can enhance overall energy efficiency and contribute to a more sustainable bioenergy sector.
© Julia Sekula. The author warrants that the work is the author's own and that Stanford University provided no input other than typesetting and referencing guidelines. The author grants permission to copy, distribute and display this work in unaltered form, with attribution to the author, for noncommercial purposes only. All other rights, including commercial rights, are reserved to the author.
[1] "BP Statistical Review of World Energy," British Petroleum, 2019, 2020, 2021, 2022.