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About 44% of the total energy produced in Brazil comes from renewable sources.

Brazil was the world sugar cane’s ethanol production leader during long time. After the ethanol boom in the world in 2006, Brazil was also the largest exporter of it. Brazil produces around 17 billion liters of ethanol every year and exports about 2.0 billion liters of ethanol. The share of renewable fuels makes approximately 20% of everything that is in use of transportation in Brazil.

In the 70s of the 20th century, in the midst of the First Middle East oil crisis, the Brazilian government launched a program of the use of alcohol for fuel purposes (National Fuel Alcohol Program). In general, it turned out relatively easy to implement this program because Brazil is still the world’s largest producer of sugar from sugar cane. Nevertheless, the federal government helps private businesses to work within this program, including method of various tax incentives and preferences. Mandatory content of ethanol in gasoline at the level of 20% – 25% is one of other methods, which producers of ethanol in Brazil are supported by. Given the fact that Brazil sold more than 600 thousand new cars within the calendar year 2005, there is a really huge market for bio-ethanol production.
Bio-ethanol is made of sugar cane in Brazil. It is an ideal raw material for hydrocarbon (alcohol) producing through the fermentation. One ton of sugar cane contains 145 kg of dry hydrocarbon (bagasse) and 138 kg of sucrose (that is to say sugar). All the cane is fully used in the production of ethanol from sugar cane, that allows you to produce 72 liters of ethanol from one ton of cane.
Currently, all car companies are obliged to produce Brazil’s cars with ethanol based engines in a ratio of 70 to 30, that is to say 7 out of ten new cars must be designed for armored mixture. Over 75% of Brazilian cars are hybrid, that is to say can be run at any concentration of ethanol and gasoline in the mixture. The incentive for consumers from using ethanol is its cheap price, which is provided by state subsidies.

The possibility of substantial expansion of exports of Brazilian bio-ethanol to Canada is being considered to be implemented in the near future. The import tax is only 4.92 Canadian cents per liter in Canada.

Brazil introduced its new diesel program for production and use of biodiesel in Brazil on October 30, 2002. The program is designed for the use of clean and doped with vegetable oils, particularly soy. Also, the Brazilian government passed a law that requires the use of biodiesel in the proportion of 2% until the end of 2007 (about 800 million liters per year) and in the proportions of 20% by 2020 (12 billion liters per year).

There has been no venture capital investment indicated in alternative energy in 2006. This is because of a series of financial crises in the country over the past 25 years that have undermined investor confidence.

However, it is expected that wind energy together with other alternative sources will not take a significant place in the Brazilian market, despite the recent decision to withdraw 60% of import tariff on plants for its receipt.

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