Feb 03, 2010

Brazil Joins With Fiat Motors To Develop Engines That Use Pure Vegetable Oil

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

The Brazilian National Institute of Standards and Technology (Inmetro) has joined with Fiat Motors to develop diesel engines that run on pure vegetable oil instead of mixtures of vegetable oil and petroleum diesel. President Lula will inaugurate the experimental project later this month. Brazil already mandates a B5 mixture in its diesel fuel and there are proposals to make it a B10 mixture nationwide and a B20 mixture in large urban areas by the year 2015.

As part of the overall effort to increase the use of biofuels, the Brazilian agency is also joining with their U.S. counterpart to develop acceptable standards for biofuels. Since Brazil and the United States are the two leading producers of biofuels, they agreed to work together to develop acceptable international standards that are necessary if biofuels (ethanol and biodiesel) are to become a commodity that is accepted worldwide. These proposed standards for biofuels are already being evaluated by the European Union.

Brazilian officials feel there are many benefits to this aggressive approach toward biofuel production. Not only do they cut down on the country's carbon emissions, they also greatly cut down on pollution because using pure vegetable oils virtually eliminates pollution from diesel engines. Additionally, increased use of vegetable oils adds value to Brazil's agricultural production.

Critics of these programs contend that using vegetable oils as a fuel can drive up the prices of vegetable oils and reduce the amounts of vegetable oils available for human consumption. That is why Brazil is aggressively perusing plans to develop alternative sources of vegetable oils instead of relying primarily soybean oil.

Most of Brazil's electricity is already produced from hydroelectric and several weeks ago, President Lula inaugurated the first electrical generation plant that runs on ethanol. Fifty five percent of the fuel consumed in small vehicles in Brazil is already ethanol and the country continues to aggressively pursue a plan to eventually produce all their fuel supply.