SINGAPORE, Brazil will explore the transfer of know-how in ethanol production and distribution to the Southeast Asian countries

The move will be part of Brazil's campaign to promote ethanol as a commodity to be traded like oil in the world's marketplace, Brazil's Ambassador Paulo Alberto de Silveria Soares suggested at The Biofuels and Food Security Forum held in Singapore last Thursday. Brazil has a regime in place that encourages the adoption of ethanol within the country and the export of the biofuel to other nations. Brazil is the world's largest sugar cane-based ethanol producer and exporter. Its ethanol programme is supported by a massive sugar cane production equivalent to 500 million tonnes (550 million tons) of the world's output by the end of the 2007/2008 harvest season. Sugar cane is planted in the south-central or northeast regions of the country, with the nearest plantation about 250 kilometres (155 miles) away from the Amazon forest. Not one single stick of the country's sugar cane output is produced in the Amazon region, according to Soares. The sugar cane plantations in Brazil also do not occupy land previously used for the planting of food crops. Brazil is a net food exporter in the world marketplace and its ethanol production does not compromise the nation's food production, according to Soares. Ethanol now contributes 15 per cent of the country's energy mix and 45 per cent of the fuel used in the transport sector, Soares said at the forum. The success of Brazil's ethanol model is supported by a government mandate as well as the cost effectiveness of ethanol use and flex fuel vehicle adoption. Fuel sold at the pumps are required to carry 20 to 25 per cent ethanol content. Ethanol fuel blends are also made available at a lower cost than traditional gasoline. About 5 million flex fuel cars are plying the roads in Brazil. That number is expected to double to 10 million by 2010, according to Soares. Flex fuel vehicles cost less than vehicles running on gasoline in Brazil. Low cost credit facilities are extended to low income families for the purchase of such vehicles. The country also imposes a high tariff on imported vehicles. Brazil now transports its ethanol output across the country using trucks powered by ethanol fuel blend. An extensive network of pipeline is in the works to connect its distilleries to the markets in the country. © 2008 ODS-Petrodata Inc.