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Sugar cane-based ethanol is one reason why the government predicts that for the first time in its history, Brazil will export as much oil as it imports.

Recent studies in the United States have suggested that the entire American corn crop would provide enough fuel to replace only about 12 percent of U.S. gasoline demand. To help plug that potential gap, some in the United States have advocated importing ethanol from Brazil. Though Brazil currently provides about 5 percent of U.S. ethanol, a duty of 54 cents per gallon -- a measure designed to protect American farmers -- makes a large-scale trade relationship unlikely.

"We would never be able to supply the United States with any substantial quantity of ethanol," said Carvalho, of the producers union. "But we could offer an equilibrium supply if the consumers in the U.S. had a voice in the matter. But it's the Midwest corn producers that are holding it up."

Comparing sugar cane ethanol with corn-based fuel in terms of the reduction of carbon dioxide and greenhouse gases is one that Brazilians such as Carvalho love to make. The ethanol extracted from corn yields only about 15 to 25 percent more fuel than the fossil fuels that were used to produce it. In Brazil, according to industry studies, the sugar-based ethanol yields about 830 percent more.

However, many experts in all aspects of Brazil's industry agree that the future of ethanol resides neither in sugar nor corn, but in cellulosic ethanol, a biofuel that theoretically could be extracted from almost anything from switch grass to scrap paper. The United States is leading research into developing cellulosic technology, and the Energy Department this month announced it was dedicating $250 million for two new research centers dedicated to the cause.

At the sugar plants in Brazil, operators say they believe the future is already on display: Most of the plants burn bagasse, the leftover tissue from the sugar cane stalks, to power the production facilities. Because Brazilian cane has been genetically bred to yield more sugar throughout the years, the stalks are particularly weak -- which makes them easy to break down, and ideal for converting to energy.

Many believe that if cellulosic ethanol becomes accepted it will be the best idea for the future and Brazil will be the best place to demonstrate it.

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