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Aug. 8, 2005 issue - A couple of years ago, when the cost of oil started to soar, Joel Rosado didn't think twice. The owner of an air-taxi service in Mineiros, Brazil, with a fleet of 12 planes, he needed to do what he could to contain fuel costs—he spends 20 percent of his revenues each year on 300,000 or so liters of fuel. So he rang up aircraft-maker Embraer, put in an order for the latest-model single-propeller Ipanema plane and tanked up—with alcohol. Flying on ethanol (a form of alcohol) distilled from sugar cane slashed the fuel bill for his Ipanema by 40 percent, at no cost to performance. Now Rosado is buying another brand-new Ipanema and plans to convert his 11 other planes to alcohol, too. The only problem: Embraer, the world's first manufacturer of ethanol-fueled planes, now has so many customers that there's a two-year wait list to convert gasoline engines to alcohol. Embraer is now looking into converting the T25, a military-training turbojet, to alcohol. "At this rate," says Embraer executive Acir Padilha, "the gasoline motor is headed for extinction."