A 2.4. In what context was the National Alcohol Program (PROLCOOL) created?
The National Alcohol Program (PROLCOOL) was created by a Presidential Decree* in late 1975 aiming to meet the requirements of the domestic and international markets, as well as those of the fuel policy for automotive fuels. PROLCOOLs driver was an incentive to produce ethanol from sugar-cane, cassava or any other raw material. It is important to point out that Brazil had been gaining experience with the use of ethanol as a fuel since the 1920s. The basis for the program was an increase in supply: that increase would be stimulated by a greater supply of raw materials, with special emphasis on the expansion of agricultural production, the modernization and expansion of existing distilleries, and the establishment of new production units, which were either independent or annexes to existing facilities and storage units. The main motivation for the launch of the program was the strong adverse impact of the two oil shocks, in 1973 and 1978, on the countrys economy. As a result of the incent
