In addition to Brazil, mandates for blending biofuels into vehicle fuels have been appearing in several other countries in recent years, mostly driven by Kyoto targets. Because ethanol can reduce carbon emissions up to 80% in comparison with petrol [8], many countries have already approved gasohol blends. In India, the government mandated 10% ethanol blending (E10) in most sugar cane-producing areas. In China, some provinces mandate E10 blending. In the U.S., a few states have adopted E10 and B2, and many states are considering similar mandates. Canada will start E5 by 2007, Columbia is adopting E10, and the Dominican Republic will have E15 and B2 by 2015 [7]. Japan is considering an E5-blending mandate based on imports from Brazil. In most of these countries, distribution infrastructure is the major drawback and takes time and investment to be established. In Brazil, half of the 30,000 service stations are equipped with ethanol dispensers.

The adoption of E5 worldwide would demand some 100 billion liters per year, more than doubling the current world demand.

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