Brazil is going all out on Biofuels. Current studies are underway to harness the biodiesel potential of the physic nut tree (Jathropa culcas), a nut producing tree that is drought resistant and the babassu, a coconut palm from the eastern Amazonian region.

Brazil has just joined the biodiesel race last year. Their program includes a 2 percent blend with petroleum diesel which will be obligatory starting 2008. As of today, the demand for biodiesel has already reached 800 milion liters and is expected to increase once the blend is moved from 2 to 5% by 2013.
Brazil produces biodiesel from castor beans, soy beans, cottonseed, and palm oil but the addition of the physic nut and babassu means involvement of small, marginzalized farmers into the biofuel fold. This will have a great impact on the economy as more petroleum is displaced and will produce jobs and services in the poorer areas of the country. Read more here.