Bioethanol In Brazil: On The #WayToZero In Emerging Markets

Volkswagen is on the #WayToZero, irreversibly and with determination. We want to make mobility sustainable and carbon-neutral. Everywhere. The speed of this unprecedented transformation varies from region to region though. Therefore, as a global company, it does not make sense to state a single phase-out date. Influencing and sometimes limiting factors are the availability of charging infrastructure, renewable energy, and the local income level.

While we plan to phase out the production of combustion vehicles in Europe between 2033 and 2035, the USA and China will follow later. In emerging markets like Brazil, it might take even longer to go all electric. Influencing and sometimes limiting factors are the availability of charging infrastructure, renewable energy, and the local income level.

This is why we need to explore alternative options, leveraging local resources that are already available today. In Brazil, for example, Bioethanol is a complementary strategy to help the industry in emerging markets to neutralize carbon emissions. The history of ethanol in Brazil originated as an answer to the 1973 oil crisis. Today, Brazil is the second largest global producer of ethanol after the United States.

In order to advance the development of innovative technologies based on biofuels for emerging markets, Volkswagen Group decided to establish a Research & Development Center aimed at the study of ethanol and other biofuels, located in Brazil and led by Volkswagen Latin America.

With its huge number of sugarcane farms, ethanol presents an effective bridging technology in Brazil. In this region, there are several arguments that speak for sugarcane:

• Produced from the fermentation of sugars by yeast, ethanol derived from sugarcane is a comparatively sustainable fuel. It reduces GHG emissions by up to 90% compared to gasoline.
• Sugarcane fields cultivated for ethanol production account for less than 0,8% of the Brazilian territory. They have low soil erosion and require dry surroundings, so they are located almost 2,000 km from the Amazon, roughly the same distance between New York City and Dallas or Paris and Moscow. Moreover, sugarcane is semi-perennial. This means it only needs to be replanted every five or six years with minimum tillage, therefore capturing larger amounts of carbon than other land use.
• The World Wildlife Fund (WWF) Brazil publicized a study showing that until 2030 biofuels can supply 72% of Brazil’s fuel demand just by optimizing current degraded pastures without competing with land needed for food production. And already today, a lot of research is underway to ensure that this approach will continue to be sustainable.

Our Brazilian team led by Pablo di Si has just announced to only use ethanol for our flex-engine fleet vehicles, leading to an annual reduction of nearly 1,700 tons of CO2. ?Already back in 2003, Volkswagen do Brasil launched this revolutionary flex-engine, allowing the use of both ethanol and gasoline. By way of comparison, a single-family home with oil heating causes an average of around 5 tons of CO2 per year - an equivalent to the emissions of around 340 households.

This is yet another opportunities to reduce CO2, and we will continue to explore all avenues and innovative technologies on our #WayToZero.??

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