With rising gas prices and growing conflict over the oil industry, we need a solution in order to continue our fuel-dependent lifestyles. According to the Brazilian Sugarcane Industry Association, the answer is sugarcane ethanol. Leticia Phillips, the Brazilian Sugarcane Industry Association's representative for North America, discusses the benefits of sugarcane ethanol and how this alternative fuel source can lead to a brighter and cleaner future.
Explain the Sweeter Alternative Campaign.
The sugarcane ethanol campaign is centered on a new website that was launched in the beginning of 2010 (http://www.SweeterAlternative.com) that explains the benefits of sugarcane ethanol - namely its environmental, economic, and energy security advantages. This is a national awareness campaign to explain the benefits of sugarcane ethanol, but above all it serves to show that Americans are not benefiting from this clean, affordable alternative since Congress places a 54-cents-per-gallon tariff (or import tax) on imported ethanol. This tariff makes sugarcane ethanol too expensive to import. By contrast, imported oil enters the country practically duty-free.
Why should sugarcane ethanol be available?
Because American drivers deserve to have a choice at the pump, and sugarcane ethanol is a clean and affordable [option] that will help Americans save at the pump, while increasing energy diversity in the U.S. The bottom line for American drivers is the tariff amounts to a hidden tax that increases the cost of their fuel purchases. Consumers win when businesses have to compete in an open market, because competition produces higher quality products at lower costs. The same principle holds true for the renewable fuels market. Competition will create a race to the future and generate better options for American consumers.
It's time to level the playing field between clean energy and fossil fuels, diversify America's energy sources, and promote competition to lower costs.
How much does it cost compared to corn ethanol?
Sugarcane ethanol is typically less expensive than other renewable fuels currently available in large quantities, such as corn ethanol. It has cost on average $0.45 per gallon less than corn ethanol during the past five years. However, these costs vary on several issues such as weather conditions and oil prices since ethanol is currently blended into gasoline in the United States.
How would the sugarcane ethanol help eliminate subsidies?
In times of soaring gas prices and a push in Congress to reduce the budget, the $6 billion price tag for corn ethanol subsidies could be an interesting target. The case for continued subsidies and trade protections for the corn ethanol industry is running on empty. This is the world's largest ethanol producer with over 12 billion gallons per year. In fact, the industry is on its way to becoming the world's top exporter. But, defying all logic, the industry still needs more subsidies and trade barriers to be able to compete. The industry seems to be avoiding a healthy market-based competition.
This is a mature industry, and it is about time to stop subsidizing an unnecessary $6 billion program and raise trade barriers against competition. It's time to give consumers the opportunity to realize lower prices and cleaner fuels with competition in the ethanol marketplace.
How much cleaner is it?
The U.S. Environmental Protection Agency (EPA) confirmed that sugarcane ethanol is a low carbon renewable fuel, which can contribute significantly to the reduction of greenhouse gas (GHG) emissions. In fact, EPA designated sugarcane ethanol as an "advanced biofuel" that lowers GHG emissions by 61%-91%. Under the same analysis, corn ethanol was designated as a "conventional biofuel" that lowers emissions by 21%.
Discuss how President Obama's recent announcement about an expansion of the U.S./Brazilian energy partnership will impact this debate.
President Obama's announcement is very emblematic of how the two largest ethanol producers in the world can work together to achieve free trade for clean, renewable biofuels. The announcement of expanding the existing Memorandum of Understanding (MoU) to advance cooperation on biofuels, includes a new and important partnership in the development of sugarcane-based jet fuel. This project is being developed by the Brazilian jet manufacturer, Embraer, General Electric (GE), and California-based biotech company Amyris to launch the product by 2012.
Above all, the MoU has a clause calling for both countries to "prevent international barriers to biofuels trade and development," an important recognition that tariffs and trade protection block consumers in America and around the globe from accessing cleaner, more affordable energy solutions.
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