Cultural and Political Connections: Brazil and the U.S.
Market and technological opportunities lead the way.
Three elements contribute to São Paulo's success in developing innovative ethanol producing capacities. First, the public sector's National Alcohol Program encouraged the private sector to diversify into ethanol production. Second, the government contributed to the development of indigenous expertise in sugarcane and ethanol production by investing in colleges and research institutions, as well as enabling technology transfer and knowledge sharing between universities and the business sector. Third, there were relevant breakthrough technologies that assisted the Brazilian government in achieving its objectives.One of the first technologies licensed in was the Ford Corporation's hybrid fuel vehicle. This method enabled the combination of ethanol and gasoline to power cars. The Brazilian government and corporate sector worked with international technology owners to create and introduce flex-fuel vehicles into the domestic market. The government even imported the American company's technology for producing ethanol-powered vehicles. However, the significant decline in oil prices in 1986 made the program difficult to maintain, therefore the Brazilian government terminated it.
However, in 2003, the Brazilian market had a technological breakthrough.
A combination of Bosch's pioneering flex fuel vehicle technology and the success of Magneti Marelli's software sensor technology in Brazil revived the usage of ethanol to power motor vehicles (Yu et al., 2010). Brazilians could fill their tanks with either ethanol or oil, whichever was cheaper. By 2010, flexible-fuel vehicles made up 86 percent of light vehicles in Brazil (ANFAVEA, 2010; de Castro, 2014). In 2017, approximately nine out of ten vehicles sold in Brazil were flexible-fuel vehicles (ANFAVEA).
Around the same time, the government showed fresh interest in producing ethanol because oil costs were rising and the perception of using renewable energy sources was gradually gaining acceptability. At this period, a few local enterprises were generating ethanol with 1G technology.
The European market has been pushing for greener technology over the last decade, and to promote demand, a mandate for the use of more efficient biofuels has been established. As a result, Brazil's second-generation (2G) ethanol production became more viable. Whereas 1G ethanol is simply generated by crushing sugarcane, 2G ethanol is made by combining the 1G ethanol technology with the use of its "waste" known as bagasse, which is the discarded stalk of sugarcane after the sugars have been squeezed out.
Brazil has never used the 2G ethanol technology before. It produces ethanol using both 1G ethanol and 1G production residues, decreasing waste and contributing to the fight against climate change. 1G ethanol is simply created by crushing sugarcane; 2G ethanol is produced by combining the 1G ethanol technology with the use of its "waste" known as bagasse, which is the discarded stalk of sugarcane after the sugar has been squeezed out. As in the past, Brazilian businesses obtained licenses for 2G technology.
Several universities and public research institutions in São Paulo were conducting research on 2G technology. These included the University of São Carlos and the Agronomy Institute of Campinas (IAC). The first two start-up companies, CanaVialis and Alleyx, were formed by researchers from these institutions. São Paulo's efficient sugar production and availability to researchers in ethanol technology has attracted global firms to the region. Monsanto, for example, has acquired both CanaVialis and Alleyx. Other big corporations quickly followed, including Syngenta, BASF, and Shell.
The expanding demand for 2G ethanol from the European market, which commands high pricing, as well as the growing knowledge of the 2G process in Brazilian colleges and the public sector, gave the perfect opportunity and incentive for the private sector to embrace this new technology.
Despite government backing, large-scale bioethanol production utilizing 2G ethanol technology is dangerous. Only two of the six large-scale bioethanol plants that were developed worldwide in 2000 exist. They are both from Brazil (de C. L. e Penalva Santos et al., 2023).
⦁How Nairobi is sowing the seeds of revolution in African AgTech
Kenya's agricultural production is diverse, with the primary goods for domestic use being maize, wheat, rice, and beans, and the main export products being tea, coffee, sugar, and horticultural commodities such as cut flowers, fruits, and vegetables. Kenya has become Africa's top grower of flowers due to its favorable weather, soil fertility, ample sun exposure, and proximity to Europe. Between 1995 and 2003, Kenya's floriculture exports surged by 300 percent, despite stagnation in the rest of the country's agricultural sector (Whitaker and Kolavalli, 2006).
Kenya has a long history of plant breeding and has built its innovative capability in this field among others. The government’s support programs, investments in R&D and infrastructure helped build this capability. Kenya’s agriculture research center, the
However, the country faces challenges such as limited access to irrigation, high costs of agricultural inputs, including seeds and fertilizers, and limited access to financing. About 83 percent of Kenyan land is arid or semiarid and unsuitable for rain-fed farming or intensive livestock production. Only seven percent of the land is irrigated (D’Alessandro et al., 2015). Some of the issue of land irrigation is offset by the development of Kenya’s horticulture industry. Flower producers in Kenya sometimes subcontract part of their flower production to
other producers. In doing so, they help subsidize the cost of providing irrigation to non- irrigated land (Krishnan and Foster, 2018; Neven and Reardon, 2004). But the challenge persists
Around the same time, the government showed fresh interest in producing ethanol because oil costs were rising and the perception of using renewable energy sources was gradually gaining acceptability. At this period, a few local enterprises were generating ethanol with 1G technology.
The European market has been pushing for greener technology over the last decade, and to promote demand, a mandate for the use of more efficient biofuels has been established. As a result, Brazil's second-generation (2G) ethanol production became more viable. Whereas 1G ethanol is simply generated by crushing sugarcane, 2G ethanol is made by combining the 1G ethanol technology with the use of its "waste" known as bagasse, which is the discarded stalk of sugarcane after the sugars have been squeezed out.
The 2G ethanol method is thus more environmentally beneficial because it eliminates industrial waste while producing ethanol with more of the energy contained in the sugarcane plant.
Brazil has never used the 2G ethanol technology before. It produces ethanol using both 1G ethanol and 1G production residues, decreasing waste and contributing to the fight against climate change. 1G ethanol is simply created by crushing sugarcane; 2G ethanol is produced by combining the 1G ethanol technology with the use of its "waste" known as bagasse, which is the discarded stalk of sugarcane after the sugar has been squeezed out. As in the past, Brazilian businesses obtained licenses for 2G technology.
Several universities and public research institutions in São Paulo were conducting research on 2G technology. These included the University of São Carlos and the Agronomy Institute of Campinas (IAC). The first two start-up companies, CanaVialis and Alleyx, were formed by researchers from these institutions. São Paulo's efficient sugar production and availability to researchers in ethanol technology has attracted global firms to the region. Monsanto, for example, has acquired both CanaVialis and Alleyx. Other big corporations quickly followed, including Syngenta, BASF, and Shell.
The expanding demand for 2G ethanol from the European market, which commands high pricing, as well as the growing knowledge of the 2G process in Brazilian colleges and the public sector, gave the perfect opportunity and incentive for the private sector to embrace this new technology.
Despite government backing, large-scale bioethanol production utilizing 2G ethanol technology is dangerous. Only two of the six large-scale bioethanol plants that were developed worldwide in 2000 exist. They are both from Brazil (de C. L. e Penalva Santos et al., 2023).
⦁How Nairobi is sowing the seeds of revolution in African AgTech
Kenya's agricultural production is diverse, with the primary goods for domestic use being maize, wheat, rice, and beans, and the main export products being tea, coffee, sugar, and horticultural commodities such as cut flowers, fruits, and vegetables. Kenya has become Africa's top grower of flowers due to its favorable weather, soil fertility, ample sun exposure, and proximity to Europe. Between 1995 and 2003, Kenya's floriculture exports surged by 300 percent, despite stagnation in the rest of the country's agricultural sector (Whitaker and Kolavalli, 2006).
Plant breeding capabilities
Kenya has a long history of plant breeding and has built its innovative capability in this field among others. The government’s support programs, investments in R&D and infrastructure helped build this capability. Kenya’s agriculture research center, the
However, the country faces challenges such as limited access to irrigation, high costs of agricultural inputs, including seeds and fertilizers, and limited access to financing. About 83 percent of Kenyan land is arid or semiarid and unsuitable for rain-fed farming or intensive livestock production. Only seven percent of the land is irrigated (D’Alessandro et al., 2015). Some of the issue of land irrigation is offset by the development of Kenya’s horticulture industry. Flower producers in Kenya sometimes subcontract part of their flower production to
other producers. In doing so, they help subsidize the cost of providing irrigation to non- irrigated land (Krishnan and Foster, 2018; Neven and Reardon, 2004). But the challenge persists
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