Energy-cane and RenovaBio: Brazilian vectors to boost the development of Biofuels

Abstract

Brazil was the first country to use bioethanol in large volumes, still in the 70′s, to cope with the oil crisis. The development of vehicles powered by ethanol included the biofuel definitively in the Brazilian energy matrix, ensuring its demand. To increase the ethanol production, a new cane variety has been developed, the energy cane, which can potentially triple the productivity of biomass per hectare and reduce the production costs. Since most of the sugar produced by energy cane is insoluble, second-generation mills have been installed in Brazil, and nowadays the technology is in a consolidation phase. To increase the stability of the biofuels market and to attend the Nationally Determined Contribution at COP21, Brazil has created the RenovaBio, a program by which the biofuels producers receive financial titles, the CBIOs, in the proportion of the biofuel production volume and efficiency, and under the condition of respecting the environmental legislation. Fuels distributors will have an obligation to buy CBIOs to compensate emissions beyond their mandates, but CBIOs will also be available to any interested investor, with significant potential for a strong appreciation. As a result, the expectation is to have a substantial increase in sustainable biofuels production, mainly ethanol, which could become a world commodity to supply international markets in the bioeconomy world.