01/10/06 - brazil's gasoline alternative

In today's excerpt - a cheap alternative to oil:

"After nearly three decades of work, Brazil ... has developed a cost-effective alternative to gasoline ... [and] expects to become energy independent this year [down from importing 80% in the 1970s—the U.S. imports about 60% currently]. Brazil can make ethanol [from sugar cane] for about $1 a gallon, according to the World Bank. That compares with the international price of gasoline of about $1.50 a gallon. Even though ethanol gets less mileage per gallon than gasoline, in Brazil, it's still much cheaper per mile driven. ...

"Using carbohydrates instead of fossil-fuels to run cars is not a new idea. Henry Ford's first car was made to run on ethanol. ... During World War II, the U.S., Brazil and other nations relied on ethanol to extend gasoline supplies. In the postwar period, however, gasoline was so plentiful and cheap that ethanol lost its allure.

"India and China have sent a parade of top officials to see Brazil's program ..."


David Luhnow and Geraldo Samor


'As Brazil Fills Up on Ethanol It Weans Off Energy Imports'


The Wall Street Journal


January 9, 2006


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