Extravagant subsidies and low coal prices have made for some strange ethanol projects

Making ethanol from crops has considerable, and growing, allure. As an energy source, bioderived ethanol is renewable, and its by-products are biodegradable. And, most important, to the extent that the ethanol takes the place of gasoline, it economizes on imported oil and can reduce greenhouse gas emissions.

Many countries are promoting use of the fuel, but so far Brazil is the ethanol exemplar. The alcohol accounts for about 20 percent of the fuel burned by automobiles there. About 70 percent of new cars sold in Brazil are flex-fuel vehicles that can run on a blend of biofuel and gasoline, and the country’s ethanol exports to Japan, Sweden, and other countries are expected to double during the next five years to more than US $1.3 billion [see “The Omnivorous Engine,” in this issue].