Monday, April 4, 2011

US Gas Artificial & Dependant on Oil

Remove this tariff and start importing more sugarcane based ethanol!!

Clipped from en.wikipedia.org

Brazil's sugar cane-based industry is more efficient than the U.S. corn-based industry. Sugar cane ethanol has an energy balance seven times greater than ethanol produced from corn.[3] Brazilian distillers are able to produce ethanol for 22 cents per liter, compared with the 30 cents per liter for corn-based ethanol.[118] U.S. corn-derived ethanol costs 30% more because the corn starch must first be converted to sugar before being distilled into alcohol.[78] Despite this cost differential in production, the U.S. does not import more Brazilian ethanol because of U.S. trade barriers corresponding to a tariff of 54-cent per gallon, first imposed in 1980, but kept to offset the 45-cent per gallon blender's federal tax credit that is applied to ethanol no matter its country of origin.[5][90][91][92]



Alcohol and gasoline prices per liter at Rio de Janeiro (left) and São Paulo (right), corresponding to a price ratio of E100 ethanol to E25 gasoline of 0.64 and 0.56.

Ethanol fuel in Brazil

Brazil is the world's second largest producer of ethanol fuel and the world's largest exporter. Together, Brazil and the United States lead the industrial production of ethanol fuel, accounting together for 89% of the world's production in 2009.[1][2] In 2009 Brazil produced 24.9 billion litres (6.57 billion U.S. liquid gallons), representing 37.7% of the world's total ethanol used as fuel.[1]

Read more at en.wikipedia.org
 

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