Brazil is one step ahead of rising oil prices, thanks to sugarcane

Brazil's ethanol industry, born out of an oil crisis in the 1970s and rooted in decades of sugarcane cultivation, is experiencing a new moment in the spotlight as rising oil prices driven by Middle East conflict once again highlight the value of energy independence.

All gasoline sold in the country contains 30 percent ethanol, and most Brazilian cars run on flex-fuel engines, a locally developed technology that lets drivers choose between gasoline and ethanol at the pump. The industry's backers say consumers have saved more than 40 billion dollars over the past three decades thanks to that flexibility.

Now, the next chapter is taking shape: Chinese electric vehicle manufacturers, including BYD, are working to integrate Brazil's flex-fuel system into hybrid EVs, with the first ethanol-compatible hybrid set to launch in the coming weeks. Advocates argue ethanol and electrification are not rivals but partners in reducing fossil fuel dependence, pointing to both the environmental and economic benefits of a fuel that Brazil produces domestically.

More than 40 years after launching one of the world's most ambitious biofuel programs, Brazil finds itself ahead of the curve once again. Paulo Cabral reports from São Paulo.

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