In terms of population and size, Brazil is 8.3 times and 240 times bigger than Taiwan respectively, while population density is only one-twenty-ninth of Taiwan's.
With regard to natural resources, size and population, there is a wide discrepancy between Taiwan and Brazil. However, both countries have fared about the same in terms of economic development and growth rates. In the 1970s, 90 percent of Brazil's crude oil was imported, while Taiwan today imports nearly 100 percent of its oil.
The reason Brazil has attracted the world's attention in recent years is that while the world is concerned about soaring oil prices and the worsening greenhouse effect, Brazil is now self-sufficient in terms of fuel supply and it has replaced 40 percent of its gasoline consumption with biomass energy -- ethanol.
During the 1970s oil crisis, the Brazilian government realized that its heavy dependence on oil imports would threaten its energy security, so it began to put great effort into exploring and exploiting domestic oil fields and pursuing a pioneering energy substitution project to replace gasoline with ethanol.
Not only that, it sought to reward farmers who were willing to grow sugar cane, while also establishing research institutes to improve sugar cane varieties and ethanol brewing procedures.
In Brazil today, a liter of ethanol is around NT$18 and a liter of gasoline costs NT$33. Although a liter of ethanol contains about 30 percent less energy than gasoline, it is still an economic fuel.
Most Brazilian gas stations offer three types of fuel: pure ethanol, a mix of gasoline and ethanol, and premium gasoline. The mix previously contained 25 percent ethanol, but that was reduced to 20 percent as the demand for ethanol outstriped supply. It is estimated that by the end of this year, all vehicles sold in Brazil will be powered by both ethanol and gasoline.
Brazil's ethanol program has not been hassle-free. In the 1980s, when the world's oil prices were falling, sugar cane farmers and owners of ethanol-powered vehicles suffered tremendous losses. Nevertheless, the government never gave up on its ambitious project. Fortunately, its perseverance and hard work has now paid off.
Nowadays, energy experts and entrepreneurs from developed countries travel to Brazil to learn from its success. I believe that leaders of Taiwan's energy companies and government policymakers should follow Brazil's example.
Using ethanol is not the only approach to solving energy shortages and the greenhouse effect. Therefore, carmakers and research institutes are developing electric cars that use hydrogen batteries that transform ethanol energy into electricity or use standard power supplies. The latter requires light and large capacity batteries. Ethanol production does not rely on sugar cane alone.
Considering the environmental impact, Taiwan is planning to use sweet potatoes rather than sugar cane to generate the energy the country needs, while the US is considering the use of corn. Many countries are also developing technology aiming to produce ethanol from plant fiber.
If the project is feasible, sugar cane bagasse, grass, discarded wood and scrap paper could also be used. Promoting biomass power in Taiwan could also reduce unemployment and enhance the nation's energy security.
Another issue to consider is that if a scarcely populated country such as Brazil has experienced inadequate yields of these energy substitutes, Taiwan is likely to encounter similar problems. Some energy experts even predict that if all land not used to produce food is used to produce biomass energy, that would still only cover 30 percent of world's energy needs, and it would affect global food production.
For example, Brazil's massive use of ethanol has led to soaring international cane sugar prices. As the global population continues to grow, the potential impact of the use of biomass power on the world's food supply must be considered.
There is no such thing as a free lunch. The rate at which natural resources regenerate is limited. When natural resources are consumed for one purpose, that means that there are less resources left for other purposes. The important thing is that energy policy is environmentally friendly and that sustainable development is the guiding principle.
If we want to continue to have fish, we cannot fish for both large and small fish, and if we want to continue have rice and sweet potato, we cannot use all the stems, branches and leaves to produce ethanol. The best policy for sustainable development is still to save on the limited global resources.
Tsong Tien-tzou is a research fellow in the Institute of Physics at the Academia Sinica.
Translated by Daniel Cheng
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