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05-Sep-2015 10:14

The success of "flex" vehicles, together with the mandatory E25 blend throughout the country, allowed ethanol fuel consumption in the country to achieve a 50% market share of the gasoline-powered fleet in February 2008.

Due to this mandatory minimum gasoline blend, pure gasoline (E0) is no longer sold in the country.

ethanol production and sales of ethanol-only cars tumbled due to several factors.

First, gasoline prices fell sharply as a result of the 1980s oil glut, but mainly because of a shortage of ethanol fuel supply in the local market left thousands of vehicles in line at gas stations or out of fuel in their garages by mid-1989.

Brazil is the world's second largest producer of ethanol fuel.

Brazil and the United States led the industrial production of ethanol fuel in 2014, together accounting for 83.4 percent of the world's production.

The implementation of E27 is expected to allow the consumption of the overstock before the end of 2015.

After testing in government fleets with several prototypes developed by the local carmakers, and compelled by the second oil crisis, the Fiat 147, the first modern commercial neat ethanol car (E100 only) was launched to the market in July 1979.

Subsidising ethanol production in this manner and setting an artificially low price established ethanol as an alternative to gasoline.

Since then, the government has set the percentage of the ethanol blend according to the results of the sugarcane harvest and the levels of ethanol production from sugarcane, resulting in blend variations even within the same year.

By mid March 2015 the government raised temporarily the ethanol blend in regular gasoline from 25% to 27%.

A federal law was passed in October 1993 establishing a mandatory blend of 22% anhydrous ethanol (E22) in the entire country.

This law also authorized the Executive to set different percentages of ethanol within pre-established boundaries; and since 2003 these limits were fixed at a maximum of 25% (E25) and a minimum of 20% (E20) by volume.

In 2014 Brazil produced 23.4 billion liters (6.19 billion U. liquid gallons), representing 25.2 percent of the world's total ethanol used as fuel. EPA designated Brazilian sugarcane ethanol as an advanced biofuel due to its 61% reduction of total life cycle greenhouse gas emissions, including direct indirect land use change emissions.

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