Fiat to launch ethanol truck engine in Brazil

By Roberto Samora

RIBEIRAO PRETO, Brazil, April 29 (Reuters) - Fiat Powertrain Technologies (FIA.MI: Quote, Profile, Research, Stock Buzz) should launch an ethanol-powered engine in Brazil by 2010 for use in trucks and agricultural machinery, the company's regional manager said on Tuesday.

Aimed at the cane industry in the world's No. 1 grower, around half of whose production is used to make ethanol, the motor will cut farming and transport costs as producers can run it on cost-price fuel using the ethanol they make.

Around 10 million euros are being invested in development of the motor, which will be a conventional engine adapted for the renewable fuel rather than one designed from scratch.

"With ethanol, safety is required. We want a totally secure project," said Franco Ciranni, Fiat Powertrain Technologies manager for the countries of South America's Mercosul economic area.

A small amount of diesel would be needed to combust the ethanol, but the two fuels would not mix until injected into the combustion chamber from separate tanks, which developers say avoids dangers inherent in mixing the fuels.

"Use of additives (in ethanol) makes running (an engine) dangerous, subject to explosions," said FPT's product development engineer Joao Irineu Medeiros.

"The diesel will be just enough for ignition and the ethanol will complete the combustion," he said.

Cloves Mendes, FPT's head of new technologies said ethanol would cost industry users a third of the diesel price, though larger volumes were needed.