BRAZIL is proposing that sugarcane producing countries should jointly develop a global market in ethanol, for use as an additive in petrol, and has already suggested the idea to South Africa, Engineering News can report.

Brazilian sources stress that no formal proposal has been made, but that the suggestion has been put forward for discussion.

Reportedly, South African officials are interested in the idea, which has the potential to create jobs in this country.

The stimulus behind the concept is California's 'zero emission' legislation, which seeks to dramatically reduce air pollution from motor vehicles, and which will come into effect in 2004.

Achieving this objective will require mixing additives into the petrol sold in the US state, but most of the additives which will reduce air pollution are environmentally unfriendly in other ways.

The exception is ethanol, which is ecologically superior to all the other relevant additives.

Use of ethanol in petrol in Brazil has already significantly reduced air pollution in Sao Paulo city, which is one of the largest conurbations in the world.

From a South African point of view, what is especially interesting about this is that, in addition to sugar cane, ethanol can be produced from maize.

Indeed, US maize farmers, like Brazilian sugar-cane farmers, are eager to exploit the ethanol opportunity being provided by California.

The governors of the corn-belt states in the US have formed a committee to promote ethanol production in their states and jointly market it in California, and Brazil is talking with this committee, seeking a co-operative approach to the opportunity.

But, if a global market is created for ethanol as a fuel additive, the opportunities will be even greater, for everyone.

What is especially attractive about the idea is that farmers would be able to switch between producing cane for sugar and cane for ethanol, depending on conditions and prices in the two markets.

At present, Brazil is the only country with an infrastructure allowing cane farmers to switch production back and forth between sugar and ethanol, as required, but the Brazilians are willing to help South Africa in this regard. Ethanol, of course, is corrosive, and internal combustion engines need modification to use it without suffering damage.

Brazil has 30 years of experience in using ethanol in motor vehicles, has developed technology to deal with the associated problems, and is again willing to help South Africa, should this country decide to add ethanol to local petrol.

It should be pointed out that the proposal to create a world ethanol market is not, in any way, connected with the present programme to negotiate a free-trade agreement between South Africa and the Common Market of the Southern Cone, better known as Mercosur, which is composed of Brazil, Uruguay, Paraguay and Argentina.