Brazil is the world's second largest producer of ethanol fuel. Brazil and the United States have led the industrial production of ethanol fuel for several years, together accounting for 85 percent of the world's production in 2017. Brazil produced 26.72 billion liters (7.06 billion U.S. liquid gallons), representing 26.1 percent of the world's total ethanol used as fuel in 2017.
Between 2006 and 2008, Brazil was considered to have the world's first "sustainable" biofuels economy and the biofuel industry leader, a policy model for other countries; and its sugarcane ethanol "the most successful alternative fuel to date." However, some authors consider that the successful Brazilian ethanol model is sustainable only in Brazil due to its advanced agri-industrial technology and its enormous amount of arable land available; while according to other authors it is a solution only for some countries in the tropical zone of Latin America, the Caribbean, and Africa.
In recent years however, later-generation biofuels have sprung up which use crops that are explicitly grown for fuel production and are not suitable for use as food.
Brazil's 40-year-old ethanol fuel program is based on the most efficient agricultural technology for sugarcane cultivation in the world, uses modern equipment and cheap sugar cane as feedstock, the residual cane-waste (bagasse) is used to produce heat and power, which results in a very competitive price and also in a high energy balance (output energy/input energy), which varies from 8.3 for average conditions to 10.2 for best practice production. In 2010, the U.S. EPA designated Brazilian sugarcane ethanol as an advanced biofuel due to its 61% reduction of total life cycle greenhouse gas emissions, including direct indirect land use change emissions.
There are no longer any light vehicles in Brazil running on pure gasoline. Since 1976 the government made it mandatory to blend anhydrous ethanol with gasoline, fluctuating between 10% and 22%. and requiring just a minor adjustment on regular gasoline engines.
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The United States became the world's largest producer of ethanol fuel in 2005. The U.S. produced 15.8 billion U.S. liquid gallons of ethanol fuel in 2019, and 13.9 billion U.S. liquid gallons (52.6 billion liters) in 2011, an increase from 13.2 billion U.S. liquid gallons (49.2 billion liters) in 2010, and up from 1.63 billion gallons in 2000. Brazil and U.S. production accounted for 87.1% of global production in 2011. In the U.
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