Economy

Why does Brazil mix ethanol in gasoline? History begins in 1930 and grows with the oil crisis

In 1979, the Fiat 147 made in Brazil became the first car in the world to run on 100% ethanol. Disclosure / Stellantis This Tuesday (14), the National Energy Policy Council (CNPE) announced the increase in the mixture...

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Why does Brazil mix ethanol in gasoline? History begins in 1930 and grows with the oil crisis
G1 Economia

In 1979, the Fiat 147 made in Brazil became the first car in the world to run on 100% ethanol. Disclosure / Stellantis This Tuesday (14), the National Energy Policy Council (CNPE) announced the increase in the mixture of anhydrous ethanol in gasoline, from 30% to 32%. The measure lasts 180 days and is a maneuver to control prices after the resumption of conflicts between the United States and Iran disrupt global oil supplies and increase prices. ? Click here to follow the g1 Carros channel on WhatsApp “Price of a barrel of oil soars and the Brazilian government is studying alternatives”, seems like a headline from this 2026 scenario, doesn’t it? In fact, this was also a reality in the 1970s, when the price of fossil fuel soared and caused a global crisis. The presence of ethanol in gasoline dates back to the 1930s, but it was after this turmoil, 40 years later, that Brazil began to encourage ethanol as an alternative, including mixing it with gasoline in greater proportions. In 1973, the Organization of the Petroleum Exporting Countries (OPEC) turned off the taps and forced a shortage of barrels. The price went from US$1.90 in 1972 to US$11.20 per barrel in 1974. In November 1975, the National Alcohol Program (Proálcool) was born. The initiative brought together governments, manufacturers and researchers from the academic world. (learn more below)

Alcohol in imported gasoline The trajectory of ethanol as an automotive fuel in Brazil goes back a long way and is marked by responses to global economic crises and government initiatives. The regulated inclusion of ethanol in gasoline began in February 1931, with the signing of Decree No. 19,717. The measure established that all imported gasoline entering the country must have 5% alcohol added. This implementation took place in a staggered manner so that the market could adapt: ??July 1931: beginning with 2% mixture. August 1931: increase to 3%. September 1931: rise to 4%. October 1931: consolidation of the 5% level. In addition to general trade, the government's own fleets were instructed to prioritize the use of biofuel. The main aim, even at that time, was to reduce dependence on foreign products and support national agriculture. Still in the 1930s, during the Getúlio Vargas government, the scenario gained a new institutional arm: the foundation of the Sugar and Alcohol Institute (IAA) in 1933. The IAA began to coordinate and regulate the sugar and alcohol sector, using alcohol production as an escape valve for times of sugar overproduction. When the price of sugar fell or there was a surplus of raw material, the surplus sugarcane was sent to distilleries. The IAA also promoted campaigns to publicize the so-called "motor alcohol", even testing and authorizing formulations with significantly higher proportions of the ecological fuel in critical periods. See which cars can feel the effects of the increase in ethanol in gasoline In 1938, a decree established that even national gasoline must have the addition of ethanol and that the volumes would be determined by the IAA and the National Petroleum Council (CNP). The model based on additives and regulation of surpluses worked for decades, but the scenario changed drastically in the 1970s. With the international oil crisis, barrel prices soared, placing strong pressure on Brazil's trade balance. In 1979, an advertisement from the National Association of Vehicle Manufacturers (Anfavea) celebrated Proalcool. Reproduction Proálcool On November 14, 1975, the National Alcohol Program (Proálcool) was established through Decree No. 76,539, which created financial incentives and promoted the modernization and expansion of distilleries. The initiative sought to quickly increase the production of vegetable fuel. The creation of Proálcool marked the beginning of the largest public policy of partial replacement of fossil fuels with a renewable fuel ever implemented in the world. The program was structured around three main pillars: The mandatory mixture of anhydrous ethanol with gasoline; The expansion of ethanol distribution at gas stations across the country; The development and production of vehicles powered exclusively by hydrated alcohol. The strategy sought to reduce Brazil's dependence on imported oil at a time when energy security had become a global concern. Oil is no longer just a commodity and begins to represent an economic and geopolitical risk factor, subject to the decisions of producing countries and international crises. The program also drove a transformation of sugarcane itself. The crop, previously focused mainly on sugar production, began to assume a new role as an energy raw material. In the first years, the success of Proálcool was directly linked to the international price of oil. While the barrel remained expensive, the policy gained momentum. Oil price fluctuations were the main economic parameter of the first phase of the program, influencing its pace of expansion and the investments made. The initiative also helped to bring together the government, universities, research centers, sugarcane producers and the automobile industry. This collaboration allowed Brazil, years later, to develop its own technologies for alcohol-fueled engines and, later, for flex-fuel vehicles. Technical challenges Even before the federal government made Proálcool official, the Brazilian automotive ecosystem was already testing mixtures and implementations on a smaller scale. At the beginning of the 1970s, grinding mechanics and repair establishments (which were already authorized to modify engines) got the green light to put the sugarcane derivative directly into car tanks. Conversions were carried out improvised, limited to advancing the ignition timing, installing new spark plugs, modifying carburetors to inject more volume and using more robust batteries. The strategy had no established methodology and generated frequent headaches for drivers. And it also prevented the energetic qualities of ethanol from being fully exploited. According to reports from the technical directorate of the National Association of Motor Vehicle Manufacturers (Anfavea), not even the chemical specifications of alcohol were controlled at that time, even opening up space for parallel tests with methanol. This lack of standardization was directly reflected at the pumps, where the content of the component mixed with gasoline fluctuated without predictability. The proportion fluctuated according to the market, registering jumps from 10% to 17%, drops to 12% and new increases of up to 20%. The sudden fluctuations occurred without the support of scientific studies or long-term trials. As a result, owners faced an extensive list of operational failures: Internal degradation of pipelines; Constant fuel leaks; Severe difficulty starting on colder mornings; and accumulation of thick residues that clogged the carburetor. The biggest technical challenge, however, lay in the chemical reaction of the materials. The biofuel reacted aggressively with the aluminum and alloy components of the carburetion systems. The interaction with copper pipes created an effect similar to that of an electrochemical battery, accelerating the wear of auto parts. Not even the fuel tanks were left unscathed, as the metal alloys used to manufacture the tanks at the time were quickly corroded by the new compound. 1979, alcohol-powered Fiat 147 assembly line in Betim (MG). Disclosure / Stellantis The first alcohol-powered car It was only in 1979 that engineers managed to deliver a vehicle that could run with 100% ethanol in the tank. The Fiat 147, nicknamed "Cachacinha", began to be developed in 1976 and already appeared as a prototype at that year's São Paulo Motor Show. Fiat carried out several tests over tens of thousands of kilometers traveled. The challenge was to adjust the carburetor to work with ethanol in different scenarios. It was precisely to prove that the “Cachacinha” was ready for anything that Fiat carried out the final test in 1978. The 147 covered 6,800 kilometers in 12 days and experienced climate variations of more than 30 degrees Celsius. Related Galleries For younger people, it's worth a reminder: ? One of the most common problems with ethanol in engines is when starting. A cold engine has difficulty burning fuel when the driver turns the key. This is even worse when the ambient temperature is low. The cold walls of the combustion chamber condense the ethanol and it does not burn. The car is, in popular parlance, choked. The solution involves adjustments to the mixture and spark plugs with a stronger spark for the car to “start”. Afterwards, the heat from burning the ethanol leaves the engine in better condition. That's why flex cars initially had a tank of gasoline. It was used to start a cold engine. Today, flex-fuel cars use heaters in the fuel line so that the ethanol enters the chamber hot and burns more easily. Proalcool faced difficulties in the 1990s, when the fall in international oil prices reduced its competitiveness. The program came close to disappearing. The recovery occurred in 2003, driven by the partnership between ethanol producers and the automobile industry, which launched the first dual-fuel vehicles on a large scale. Brazil has become the world's main laboratory for developing this technology. According to data from Unica, today there are more than 32 million flex-fuel cars in Brazil, which is equivalent to 85% of the fleet. Name changed to ethanol in 2010 Gas stations used the name “alcohol”, and this had been happening without question for decades. In 2008, some entities linked to the sugar-energy sector began to defend the name change to ethanol. ? The argument of the Sugarcane Industry Union (Unica) was that the slogan “Alcohol and driving don't mix”, used in the Prohibition campaign, confused the public. Furthermore, the National Agency for Petroleum, Natural Gas and Biofuels (ANP) wanted to standardize the nomenclature to align it with the international market. “The word alcohol is a generalized name [there are several types of alcohol] and ethanol is a specific product, with greater commercial value”, said Haroldo Lima, president of the ANP at the time. Standardization only came in December 2009, through an ANP resolution, and came into effect throughout Brazil in 2010. Chevrolet Onix ECO uses exclusively ethanol in the tank Disclosure / GM

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