Methanol from wood in Brazil.

Brazilian fossil fuels reserves are limited, but its territory is quite extensive, it has a warm and rather humid climate, labour is relatively cheap, industry is diversified and well established, and it has attained in the last twenty years an accelerated economic growth. The increase on oil prices has produced strong pressures against the equilibrium of its balance of payments: oil imports represent more than 40% of the total export revenues, and the spent money in hard currency is not recycled in the country. TRaditional importers of Brazilian goods are more and more adopting protectionist commercial policies, since they also have problems in balancing their own external trade. Oil prices tend to increase in an unforeseable way making it urgent for Brazil to look for oil substitution, even with little higher costs. According to available information methanol obtained through wood gasification is the most economical alternative to oil in Brazil. It cost is estimated to be around US 25/Gcal, roughly 20% above the average refined oil's costs. This low cost is due to the low cost of eucalyptus wood in Brazil, around US 8/Gcal, and to the fact that the sulfur and ash contents in the wood are extremely low. The paper presented shows: the economical aspects of the industrial production of methanol as a fuel; CESP's projects and intentions relative to wood gasification and methanol synthesis..