MINISTRY OF AGRICULTURE, LIVESTOCK AND FOOD SUPPLY Secretary of Production and Agroenergy BIOENERGY IN BRAZIL: BIOENERGY IN BRAZIL: OPPORTUNITY FOR INVESTMENTS OPPORTUNITY FOR INVESTMENTS LINNEU CARLOS DA COSTA LIMA Secretary of Production and Agroenergy FOODEX - - JAPAN JAPAN FOODEX JAPAN / March, 2007 JAPAN / March, 2007
BRAZIL HAS A GREAT POTENTIAL FOR BIOFUELS PRODUCTION... BRAZIL HAS A GREAT POTENTIAL FOR BIOFUELS PRODUCTION... 30 O 30 O 0 O 0 O 30 O 30 O
...LEADING TO A RENEWABLE ENERGY MIX ...LEADING TO A RENEWABLE ENERGY MIX BRAZILIAN ENERGY MIX Share of renewable energy in the total primary energy: 45% Biomass; 29,7% Share of renewable energy in the power Coal; 6,4% generation: 85% Uraniun; 1,2% Natural gas; 9,3% WORLD ENERGY MIX Hydraulic and Electricity; 15,0% Coal; 24,1% Biomass; 11,2% Oil and Oil Products; 38,4% Uraniun; 6,4% Natural gas; 20,9% Hydraulic and Oil and Oil Electricity; 2,1% Products; 35,3% Source: MME/BEN, 2006
THE NATIONAL AGROENERGY PLAN - ETHANOL - BIODIESEL - AGRICULTURE WASTES - ENERGETIC FORESTS
BIODIESEL: A PRODUCT FOR THE FUTURE Castor Soybean Palm Tree Sunflower Biodiesel mixed with diesel 2005-2007: 2% authorized Peanut 2008-2012: 2% mandatory Cotton seed 2013...: 5% mandatory Source: MAPA/Embrapa
THE BRAZILIAN SUGAR CANE AND THE BRAZILIAN SUGAR CANE AND ETHANOL EXPERIENCES ETHANOL EXPERIENCES 1925: First First ethanol ethanol powered powered vehicle vehicle 1925: tested in in Brazil Brazil tested 1532: Martim Afonso de Sousa 1532: Martim Afonso de Sousa introduces sugar introduces sugar cane cane in in Brazil Brazil 1975 - Proálcool 1979: First First commercial commercial ethanol ethanol moved moved 1979: vehicle in in Brazil Brazil vehicle 2003: 2003: Flex fuel fuel motors motors are are Flex launched launched
WHY ETHANOL? WHY ETHANOL? - Clean Clean, , green green and and renewable renewable energy energy; ; - - Safe Safe and and efficcient efficcient; ; - - Easy Easy to to produce produce in in large large scale scale; ; - - Generate Generate new new jobs jobs, , specially specially in in the the rural rural area area; ; - - Easy Easy to to introduce introduce in in the the consumer consumer market market ( (pure pure or or mixed mixed with with gasoline gasoline); ); - - Sugar Sugar cane cane has has high high productivity productivity and and low low environmental environmental impacts impacts; ; - - Relatively Relatively low low production production costs costs (~ US$ 0,30/L at (~ US$ 0,30/L at the the mill mill, , without without taxes); taxes); - - The The sugar sugar cane cane “ “wastes wastes” are ” are important important products products; ; - - Low Low consumption consumption of of external external energy energy in in the the production production process process. . -
THE MAIN SUGAR CANE BY- -PRODUCTS PRODUCTS THE MAIN SUGAR CANE BY BAGASSE (solid solid industrial industrial waste waste): ): ( BURNED IN BOILERS TO PRODUCE ENERGY VINASSES or STILLAGE VINASSES or STILLAGE (liquid industrial waste) USED AS A FERTILIZER IN THE SUGAR CANE FIELDS
THE FLEX FUEL CAR – – A NEW DOMESTIC ETHANOL DEMAND A NEW DOMESTIC ETHANOL DEMAND THE FLEX FUEL CAR • Flex-Fuel Engine: allows the use of ethanol or gasoline in any concentration of these fuels • Current Manufactures: VW,GM, Ford, Fiat, Renault, Peugeot, Citröen and Honda • Sales of Flex-Fuel Vehicles in Brazil: - 2003: 48.000 units - 2004: 330.000 units - 2005: 865.000 units - 2006: 1.447.000 units More than 80% of the new light-duty vehicle sales in Brazil are flex fuel.
THE ETHANOL INTERNATIONAL DEMAND IS INCREASING THE ETHANOL INTERNATIONAL DEMAND IS INCREASING And so are the Brazilian exports... YEARS Million US$ F.O.B. Liters (Billion) Average US$/m³ 1997 54 0,146 370,09 1998 36 0,118 301,21 1999 66 0,407 161,70 2000 35 0,227 153,07 2001 92 0,346 266,57 2002 169 0,759 222,86 2003 158 0,757 208,56 2004 498 2,408 206,68 2005 766 2,592 295,31 2006 1605 3,428 468,20 Source: Secex (Alice System) The Brazilian aim is to transform ethanol in a great commodity, together with other countries
HOW TO EXPAND SUGAR CANE WITH SUSTAINABILITY? SLOPE < 12% AMAZON REGION PANTANAL (SWAMPLAND ) SLOPE SLOPE > 12% > 12% TOTAL AREA WITHOUT ATLANTIC ENVIRONMENTAL FOREST RESTRICTIONS . . . . . . . . . . . . 437,2 MM hectares AREAS FOR AREA WITH SLOPE EXPANSION ABOVE 12% . . . . . . . . . . . . . . Current plants: 360 mills 75,6 MM hectares Forecast for 2010: + 77 mills TOTAL AVAILABLE AND SUITABLE LAND . . . . . . . . . . 361,6MM hectares
DOES BRAZIL HAVE THE CONDITIONS TO EXPAND DOES BRAZIL HAVE THE CONDITIONS TO EXPAND ITS SUGAR CANE PRODUCTION WITH SUSTAINABILITY? ITS SUGAR CANE PRODUCTION WITH SUSTAINABILITY? TOTAL SUGAR CANE CULTIVATED AREA IN BRAZIL TODAY: ~ 6 million hectares (less than 1% of the Brazilian territory) New areas of sugar cane necessary to supply the external sugar and internal ethanol demand foresighted for 2013: ~ 3 million hectares
HOW TO START AN ETHANOL MIXTURE PROGRAM? MAIN ASPECTS TO BE ADDRESSED: - Definition of a regulatory framework, with clear investment rules; - Definition of a tax system; - Planning of economic viability and product supply guarantee; - Infra-structure and logistics investment; - Marketing plan; - Technological development. THESE ARE ONLY A FEW TIPS FROM THE BRAZILAN EXPERIENCE, BUT EACH COUNTRY HAS TO DESIGN ITS ON MODEL.
HOW TO INVEST IN THE ETHANOL SECTOR IN BRAZIL? •The ethanol sector in Brazil is catching the attention of many investors worldwide •Some international groups already have invested in this sector in Brazil •Usually these investments are made together with Brazilian groups with expertise in the ethanol sector •There are some institutions in Brazil who are able to give guidance for foreign investors such as: The National Investment Information Network - RENAI http://sistemasweb.desenvolvimento.gov.br/investimento_web/renai_en/index.asp Trade and Investment Promotion Agency – APEX http://www.apexbrasil.com.br/eng/ Trade and Investmet Information Net - BrazilTradeNet http://www.braziltradenet.gov.br/
LAST COMMENTS… - The transition from the oil era to the renewable energies may take time and demand a lot of different sources and technologies, such as: hydrogen, solar, wind power etc. However ethanol is an already viable and competitive fuel. - Bioenergy contributes to reduce poverty and improve the democratic access of energy in the world. Brazil has a historical opportunity to be a great biofuel and clean technology exporter together with other countries. - Biorefinery concept: ethanol and sugar to chemical uses; power generation; fertilizers; ethanol from lignocelluloses hydrolysis; etc. - Bioenergy also contributes to the sustainable development and to avoid the global climate change.
THANK YOU! THANK YOU! OBRIGADO! OBRIGADO! LINNEU CARLOS DA COSTA LIMA + 55 61 3218-2147 / 3218-2945 daa@agricultura.gov.br www.agricultura.gov.br
BRAZILIAN ETHANOL PRODUCTION 4 th Stage: free market. Flex fuel vehicles. High international sugar and ethanol demands . 3 rd Stage: Top oil prices. 2 nd Stage: hydrous 30,000 anhydrous ethanol. GHG emission targets. ethanol. 1 st Stage: sugar High sugar exports. cane destined Governmental 25,000 only for sugar intervention on the Oil prices stabilized total market. 20,000 Million liters hydrous 15,000 10,000 anhydrous Oil crisis 5,000 0 5 7 9 1 3 5 7 9 1 3 5 7 9 1 3 5 7 9 1 3 5 7 9 1 3 7 6 6 6 7 7 7 7 8 8 8 8 8 9 9 9 9 9 0 0 0 0 0 1 1 / / / / / / / / / / / / / / / / / / / / / / / / / 4 6 8 0 2 4 6 8 0 2 4 6 8 0 2 4 6 8 0 2 4 6 8 0 2 6 6 6 7 7 7 7 7 8 8 8 8 8 9 9 9 9 9 0 0 0 0 0 1 1 PROÁLCOOL Kyoto Protocol
Recommend
More recommend
