The Ipanema is the first factory series production aircraft in the world certified for the use of ethanol as a fuel alternative. SÃO

JOSÉ DOS CAMPOS--Indústria Aeronáutica Neiva, a wholly owned Embraer subsidiary, has received type certification for its ethanol-fueled Ipanema agricultural aircraft from the Brazilian aviation regulating agency Centro Técnico Aeroespacial (CTA). The Ipanema is the first factory series production aircraft in the world certified for the use of ethanol as a fuel alternative.

"An efficient and cheaper source of power, the ethanol alternative will find favor with farmers for lowering their operating costs for the use of ag-aircraft." said Satoshi Yokota, Embraer Executive Vice-President for Development and Industry. "Ethanol is also a more environmentally-friendly fuel and Neiva research indicates that it may prolong the engine's life, making it a prospective national market success. "In the medium and long terms, we may benefit from the introduction of the Ipanema in countries that adopt ethanol as a source of energy."

The choice for using ethanol was based on the fact Brazil is a major producer of this type of alcohol, extracted from sugar cane. Automobiles in Brazil have been using alcohol fuel for more than 20 years. This makes ethanol about three to four times cheaper than aviation fuel.

Additionally, ethanol-powered aircraft engines are cleaner and have lower levels of emission than av-gas, because they have no lead in their composition, providing for a more environmentally-friendly fuel. Neiva has registered the name "AvAlc" (Aviation Alcohol) in Brazil for the use of this new fuel.

The use of an ethanol-powered engine will allow for an increase of about five percent in power, thus improving performance in general, namely takeoff run, climb rate, speed and maximum altitude. Initial tests showed that ethanol may also extend from 20 to 80 percent the engine's maintenance cycle. The conversion of existing engines is not only feasible, but also cost effective. Neiva has received 69 orders to retrofit customers' av-gas fueled Ipanemas into ethanol-powered airplanes. This work has begun in January of 2005. Deliveries of the first units of the ethanol version are expected in the first quarter 2005.

The Ipanema is Neiva's best selling aircraft with over 30 years of uninterrupted production and nearly 1,000 units sold. In 2004, Neiva delivered over 80 Ipanemas, compared to 46 aircraft in 2003. A dominant force in the domestic Brazilian market, the company's market share is about 80 percent of the ag-aviation aircraft.