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McClatchy Washington Bureau

Posted on Friday, May. 02, 2008

Brazil can't find world market for its ethanol

By Jack Chang

ORINDIUVA, Brazil — The ethanol giants of southeastern Brazil have transformed how 185 million residents of this South American nation power their cars and trucks. Now, they say they're ready to start the same ethanol revolution in the rest of the world, if only the world will let them.

That, however, is where Brazil's ethanol leaders are hitting problems. They already churn out what many consider to be the world's cheapest and most efficient mass-produced biofuel and say they can export billions of gallons more.

Yet the rest of the world doesn't seem to want what the Brazilians have. In the United States, a 54 cent-per-gallon tax blocks most Brazilian ethanol from reaching U.S. consumers. Similar tariffs also block access to Europe, China and other major energy markets.

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