Brazil has become the worlds largest exporter of soybeans, and leads in the export of agricultural products including sugar, coffee and orange juice. It is also becoming a major influencer in biofuels. Brazil is the worlds largest ethanol producer and runs most of its autos on ethanol made from its sugar cane (rather than corn in the US).
As posted earlier, Cargill is trying to avoid ethanol tariffs by doing a two-stage import of ethanol from Brazil through El Salvador, much to the concern of corn farmers in the US. Brazilian ethanol costs approximately half as much to produce as US ethanol.
Brazil and China are exploring much closer ties around ethanol and biodiesel.
We intend not only to use Guandong as a port of entrance for Brazilian products but also to look into the exchange of technology in the segment and to draw up logistics partnerships, such as in the São Paulo railroads and ports, said [Antônio Duarte] Nogueira [the São Paulo state Agriculture secretary].
Australia is in talks with Brazil to create a joint venture to provide ethanol to Japan.
Brazil and Germany are negotiating a 2% ethanol component to German fuel, with a view to creating a larger European market.
Brazil has a target of selling 3 billion liters to the EU. In order to do that, however, wed have to create a market that doesnt yet exist in Europe, said Maraio Mugnani, the secretary of Brazils Chamber of Foreign Trade.
Interestingly, Brazil has the second largest reserves of petroleum in South America, behind Venezuela. Brazil is also the largest energy consumer in South America, and third only to the US and Canada in the Western Hemisphere.
Although Brazils carbon emissions are fairly significant in the region, carbon intensity, the amount of carbon emitted per dollar of GDP, is comparatively low.
One reason for the comparatively lower carbon intensity in Brazil is the significant use of hydropower in the energy mix, as well as the use of biofuels and other forms of renewable energy. One prominent biofuel in the Brazilian economy is ethanol. The ethanol program was initiated partially in response to the oil shock of 1973, and partly as an alternative to oil to promote self-sufficiency. The ethanol program also has been one of Brazil's strategies to mitigate the environmental effects of rapid urbanization.
Something to export from Brazil besides biofuel.