In the US many new cars and trucks are equipped to operate on either gasoline or ethanol. Many parts of the US now have ethanol available at fuel stations and convenience stores for far less per gallon than gasoline. Although this is exciting news, the use of ethanol as a motor vehicle fuel in the US remains a very small portion of the total fuel market.

The story is very different in Brazil where over half of all cars and light trucks are powered by ethanol. The cost of ethanol vehicle fuel in Brazil is about 40% less than gasoline. This factor alone would account for the popularity of ethanol fuels in a country with few fossil fuel resources.

Unfortunately, Brazil is among the developing countries that allow the destruction of valuable forests for the production of agricultural products such as corn and soybeans for bio-fuels. Ethanol represents the end product of crops grown and refined locally, thereby creating a closed-loop of production and consumption. Yet another reason the cost of ethanol at the pump is so much lower than gasoline. To add a bit of perspective, consider that overall, ethanol only accounts for 16% of Brazil’s total energy use. Worldwide, ethanol represents less than 2% of fuel demand.

Although the Brazilian statistics sound encouraging, they only relate to a very small part of the world. Overall worldwide fossil fuel use remains at staggering highs. Although ethanol production methods have improved and the fuel is becoming more readily available in many parts of the world, there are still concerns related to the use of food crops for fuel.

If all vehicles currently equipped to operate on ethanol were to make a total switch to ethanol fuels, there are questions as to how long our food supplies would last. If large amounts of food crops were diverted to fuel production, then Mother Nature sent a drought the following year, food stores could become strained or depleted.

While ethanol technology has been an exciting advancement in alternative fuels, many believe our investments in automotive energy research should be focused on fully electric vehicles. Electric vehicle technology, while increasing the demand for electricity, could potentially eliminate fossil fuel burning vehicles within the next 20 years.

Technologies to provide alternate forms of electrical power are also advancing at a rapid pace. It would seem possible that alternative electrical energy sources and electric vehicles could evolve at a similar pace to completely replace fuel burning vehicles within 20 years.