Cars On Alcohol, Part 15: US & Brazilian Ethanol

While a general move from methanol to ethanol was evident in 1996, there were also conflicting activities taking place that showed industry, energy interests, and governments were exploring which way to go. In some cases, the pathway to ethanol was clear. In others, it was obvious that supplies of ethanol were not always sufficient to meet all needs. Still, both fuels had their champions and their uses. It would be some time before this all sorted out. Below, these activities are detailed in reports just as they originally ran in early issues of Green Car Journal.

U.S. AND BRAZIL IN ETHANOL AGREEMENT
ORIGINALLY PUBLISHED JANUARY 1996 In a concerted move to bolster the ethanol market, U.S. and Brazilian ethanol and sugar producers recently signed an agreement to cooperate in expanding worldwide use and production of this renewable fuel. The alliance plans to develop import/export joint ventures and share in ethanol research and development. Strategies also call for creating initiatives for expanding and encouraging public awareness of ethanol.

Dignitaries on hand at the signing included Wisconsin Gov. Tommy G. Thompson, chairman of the Governor's Ethanol Coalition; Sen. Teotonio Vilella, vice president of the Brazilian Senate; and Jose Pilon, coordinator for the Brazilian Committee of Ethanol and Sugar Producers.

METHANOL BUS PROGRAM DEEMED A FAILURE
ORIGINALLY PUBLISHED MARCH 1996 Los Angeles' Metropolitan Transportation Authority has concluded that its $102-million, methanol-powered bus program is a failure. Its solution: A tactical switch to ethanol at a cost of $17 million.

Problems encountered with the 330 methanol buses, which represent a substantial part of MTA's 2,000+ bus fleet, reportedly include high operating costs and frequent engine problems due to the corrosive fuel. Engine rebuilds reportedly are required every 50,000 miles as compared to every 150,000 miles for diesel-fueled buses in the MTA fleet. An MTA executive says the agency annually spends $5 million more to operate its methanol buses than it does to operate its diesel counterparts.

GM FLEXIBLE-FUEL PICKUP DELAYED
ORIGINALLY PUBLISHED APRIL 1996 The Chevrolet E-Series and GMC Sonoma mid-size pickups that were to be offered with flexible-fuel 4-cylinder engines for the 1997 model year are on hold. Company sources, who have advised Green Car that the 1997 enhanced 2.2-liter 4-cylinder engine program has been delayed until 1998, add that GM is still committed to the flexible-fuel program.

"We intend to introduce the flexible-fuel application of this program as soon as it is practical and when we are confident the product will meet customer expectations for performance, quality, reliability, and durability," says E. Michael Mutchler, vice president and group executive of GM Powertrain.

BRAZIL BACKTRACKS TO MTBE
ORIGINALLY PUBLISHED MAY 1996 After denying rumors that MTBE would be used to supplant ethanol in the country's gasoline stock, the Brazilian government has now authorized the use of this petroleum-based oxygenate in an emergency measure. The state petroleum firm Petrobras has been buying MTBE from U.S. refiners, but had until now claimed it was not destined for local use.

All gasoline in Brazil is mixed with 22 percent ethanol derived from sugar cane, and a large proportion of the cars run only on ethanol fuel. Because of the extra number of cars on the road, demand for anhydrous ethanol has risen by a surprising 23 percent in Brazil last year. Deregulation of gasoline and ethanol pump prices went into effect at the beginning of last month, which allowed a 13 percent price increase for cane growers and a 9 percent increase for distillers.

Signed by Brazilian President Fernando Henrique Cardoso, the emergency government action also decreases the required 22 percent ethanol content in gasoline to 18 percent until the end of this month, when a shortage of anhydrous ethanol is expected to end. The change does not apply to the Sao Paulo metropolitan region, but is rather limited to areas served by specific refineries in the Brazilian states of Minas Gerais, Sao Paulo, and Parana.

In its effort to bolster Brazil's ethanol industry, the Brazilian government admits that the sugar export industry is likely to take a hit. Domestic ethanol consumption is expected to increase but the sugar crop is not expected to exceed the previous year.

Government officials had been playing down the possibility of a repeat of recent ethanol shortages, which are generally conceded to have been largely caused by government indifference. The government is also heavily promoting the rising use of anhydrous ethanol and discouraging the use of ethanol-only cars.