Biofuels Slow Down Electric Vehicles in Brazil

by Mario Osava (Inter Press Service) Brazil celebrated 100,000 electric vehicles in circulation in late July, but this is a drop in the ocean compared to the 46 million combustion vehicles registered in the country and in contrast with the pace of the phasing out of oil in the world’s automotive industry.

The lag is due to several factors, but one is the progress achieved in Brazil by biofuels, especially ethanol, which in its best years, such as 2019, surpassed domestic gasoline consumption.

Much of this consumption is due to the addition of 27 percent ethanol in Brazilian gasoline, a blend that helps reduce urban air pollution. Most of it is provided by fuel made from sugarcane.

Also contributing to the success of biofuels is the “flex car” that has been produced in Brazil since 2003, with engines that consume both fuels in a mixture of any proportion. The consumer chooses gasoline or ethanol according to convenience, generally because of the price difference.

There is a consensus that ethanol makes sense to buy if it costs less than 70 percent of the price of gasoline, because in general its consumption per kilometer driven is 30 percent higher. But some nationalists always choose ethanol, as a genuinely national product.

Thus, the transition to electric vehicles will cost Brazil not only the replacement of the entire fuel production and distribution infrastructure with electricity, but also a probable drastic reduction in its sugarcane industry, which generates one million direct and indirect jobs.

In terms of gas stations alone, for example, Brazil has more than 42,000 distributed throughout its vast territory, the largest in Latin America.

The Brazilian automotive industry, which ranks ninth in the world in terms of production, does not yet produce fully electric vehicles. Its option, for now, are hybrids, which have combustion and electric engines.

In June, of the 4,073 electrified vehicles that joined the national fleet, 73 percent were hybrids – ethanol (44 percent) and gasoline (four percent) – while the so-called plug-in hybrid electric vehicles (PHEVs) accounted for 25 percent and have batteries that are also recharged at specific points.

The industrial sector advocates a gradual transition, which would include greater development and use of biofuels and hybrid vehicles, to avoid or at least delay the end of a sector that represents 20 percent of Brazil’s industrial product.

Arguments such as pollution caused by the production and disposal of batteries undermine support for electrification to combat the climate crisis.

Greenhouse gas emissions from electricity generation, a negative factor in countries that depend on fossil fuels, especially coal, do not affect electric mobility in Brazil, where renewable sources account for 85 percent of the electricity mix.

Batteries are also a barrier, as is the higher cost of electric vehicles. But technological advances are expected to make them cheaper and Brazil can benefit from domestic production, if the feasibility of a large lithium mine in the state of Minas Gerais is confirmed, as well as advantages due to the abundance of iron, nickel and niobium, other components, in the country.

Brazil’s reluctance is reflected in the lack of an “electromobility policy,” complained the president of the Brazilian Electric Vehicle Association (ABVE), Adalberto Maluf, at a Jul. 29 debate on the subject in São Paulo.

The high price of electric cars, the low investment capacity in infrastructure, the technology gap and the small scale of the market, among other factors, prevent developing countries in the South from following the trend of rich or emerging markets such as China. READ MORE