0 Bionergy and biofuels: opportunities for innovation and development – examples from LAC Weber Amaral, PhD University of Sao Paulo – Brazil.

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Bionergy and biofuels: opportunities for innovation and development – examples from LAC

Weber Amaral, PhDUniversity of Sao Paulo – Brazil

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Key messages

•Renewable sources represent 29% of the total energy supply in LAC

•There is huge variation among countries related to the deployment of bioenergy opportunities

•Argentina/Mexico/Venezuela/Ecuador – bionergy is almost marginal as a supply option

•Ethanol from sugar cane is the best available option for transportation and co-generation – the learning curve effect and the development of the custody chain

•Biodiesel, biogas and forestry biomass are mid to long term options – although rather dependent on feedstock availability – the spatial scale effect

•Need to explore the synergies among different bionergy chains and conversion technologies through innovation

•Strong influence of government policies in the sugar market affect the deployment of opportunities in Central America

•Roles and functions of S-S cooperation – capacity building, awareness, lessons learned and for the development of strong national programmes

•At regional and local scales – need to optimize current production systems – landscape approaches

•Need to generate new primary data to assess sustainability issues of bioenergy and biofuels production systems – long term monitoring sites and based on an interdisciplinary research agenda

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Roles and functions

of government,private sector

and NGOs

Gasoline/Diesel

Querosene

FoodEthanol

& biodiesel

Jobs

WindEnergydemand

GHGs

Nuclear

Oil reserves

Economic growth

+-

System dynamics and their multiple interactions

Hydro

Hydrogen

Trends inconsumption

Global awareness

Environmental

taxes & policies

Energysupply Land use

patternsNative

vegetation and

forests

Quality of jobs

Diversification

Biodiversity

Climatechange

Food safety

Quality of lifeand

livelihoods

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Bioenergy & Biofuels frameworks - understanding key drivers of energy supply and demand

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The role of sugar cane in the energy matrix

Petroleum and Derivatives

37.9%

Sugar Cane14.6%

Other Renewables 3.0%

Natural Gas9,6%

Coal6,0%

Uranium1,6%

Hydroelectricity14,8%

Other Biomass12,4%

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Blending regimes -

Transportation demand – current and 2010 – (mtep)

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Energy intensity economies – developed versus developing countries

Asymmetric impacts of GHGs in countries – the poor will suffer the most

Livelihoods ... trends in consumption patterns and cultural behavior

The role of renewable energy sources

Technologies and biofuels: competitiveness and innovation

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...without having to displace food production, as seen in recent years.

Source: MAPA; CONAB

Brazilian Main Cropped Areas(MM Ha)

14,0 16,3 18,5 21,4 23,3 22,7

13,012,3

13,212,8

12,2 13,05,05,2

5,45,6 5,8 6,6

3,94,3

4,44,3 3,9 4,2

3,23,2

3,23,7 3,9 3,0

1,72,1

2,52,5

2,8 2,4

2001 2002 2003 2004 2005 2006

Soybean

Corn

Sugarcane

BeanRiceWheat

CAGR 2001-2006

10,2%

0,0%

5,8%

1,7%-1,5%6,7%176

185196

205 207 209

6,7%

Cattle (MM)Cattle

6,7%

Cattle 3,5%

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Credits of Credits of CarbonCarbon

7 million ha73 thousand growers

390 mills & destillaries(Operation & projects)

Harvest410 million tons

ETHANOL25 billion liters

SUGAR28 million tons

BAGASSE

BioplasticBioplastic

Ethanol

Food

PharmacyLysine

Derived

Sugar cane value chain

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Evolution of light vehicles production and Total Brazilian Fleet – ‘000 vehicles

Source:ANFAVEA; VPB estimates

Gasoline

FFV

EthanolCNG

Diesel 1,045

1,385

1,446

2,752

14,797

21,425

Flex fuel cars account for more than 80% of total cars produced in Brazil

80%

Brazilian Fleet (2007)

FLEX

14Fonte:Itaú Corretora

Ethanol productivity – liters/ha growing at 2,8%/year in the last 30 years

PRÓ-ALCOOL

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Agricultural productivity – M tons/ha

Source:Petrobrás

Brazilian productivity

World average productivity

Brazilian sugar-cane productivity is 11% higher and has increased more than twice the world productivity

PRÓ-ALCOOL

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3 m

2 m

1 m

0 m

1 m

2 m

3 m

4 m

Energy factory – 1 ton of cane is equivalent of ...

• 1/3 sugar – 145 kg 1/3 fibre – 140 kg 1/3 leaves and tops – 140kg

First generation• 1ha = 9.000 l ethanol - 65 b of oil

• 6.5 MM ha of sugar cane – Uptake/year = 25,8 M tons of CO2 equivalent

Sugar Cane in Brazil

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Sugar allometric patterns and challenges

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19

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Div

eri

sity

of

pote

nti

al cr

ops

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Potential feedstocks for biodiesel - Brazil

Time fordeployment

Vo

lum

e

small

medium

large

Short Medium Long

soy bean

animal fat

Jatropha native palm species

cotton seedsPeanuts

dairy by-products

palm oil,sun flower

canolacastor oil

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There is significant room for new technologies development – 2nd generation of biofuels

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Biofuels initiatives in Brazil cover many 1st and 2nd Gen pathways for gasoline substitutes....

Raw Material

PreparationProcess

Feedstock

ConversionProcess I

ConversionProcess II

BiofuelProduct

Separation into cellulose, hemicelullose and lignin

components

Cellulosic and hemicellulosic material

(crops, waste)

Cellulose conversion to sugar via saccharfication (hydrolysis);

thermal, chemical and biological processes applied

Special fermentation for 5-6 carbon sugars produced by

saccharification

CellulosicEthanol

Synthetic Biology Fuel Substitutes

Syn-gasolineHydrogen

Gasification of raw material through heat

Syngas(e.g., CH4, CO, CO2, N, H)

Fisher-Tropsch Process

Water Gas Shift &

SeparationCatalysed Synthesis

BioButanolEthanol

Distillation and evtl. removal of water

Fermentation to ethanol, using yeast & other

microbes

Conversion to 6-C-sugar

(high-temperat. enzyme)

6-carbon sugarStarchy crop

parts(kernels)

Sugar crops, e.g.- beet- cane

Grain crops,e.g.- wheat- corn

Sugar extraction

Harvesting starch,

separating, cleaning, milling

Genetically engineered microbes produce fuel product via

metabolic pathways

N/A

Methanol

Fermentation using A.B.E

Process

Energy Crops Agricultural

Waste

Forest

Residues

Municipal Waste (MSW)

Separation into cellulose, hemicelullose and lignin

components

Cellulosic and hemicellulosic material

(crops, waste)

1st Generation

2nd Generation

Key:

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...and diesel substitutes.

Gasification of raw material through heat

Syngas(e.g., CH4, CO, CO2, N, H)

Fisher-Tropsch Process

Biomass to Liquid (BTL) –

SynDiesel

Bio Dimethyl-ether (Bio-DME)

Pyrolysis Oil

Hydro Thermal

Upgrading (HTU) Diesel

Super-Cetane

NExBTL

Raw Material

PreparationProcess

Feedstock

ConversionProcess I

ConversionProcess II

BiofuelProduct

Harvesting of oily parts of plant, Oil -pressing

Separating, filtering, removal of water & contaminants

Transesterification using methanol &

catalyst

Biodiesel (FAME)

Oil-seed crops, e.g.- rapeseed- sunflower- soybean

Synthetic Natural Gas

Catalysed Synthesis

Vegetable oils

Wastegrease & animal fat

Aqueous solution under

highpressure, but

low temperature

Separation into cellulose,

hemicelullose and lignin

components

Cellulosic and hemicellulosic

material

Green Diesel

N/AHydrotreatment of fatty acids

Feedstock ground to very small

particle size <6mm

Ground feedstock

Rapid heating in absence of

air

Separation of solid char, gases and

pyrolysis oil

Algae

Algae cultivation in

photo-bioreactor

Algal Oils

Transesterification using ethanol & catalyst;

N/A

Energy Crops Agricultural

Waste

Forest

Residues

Municipal Waste (MSW)

1st Generation

2nd Generation

Key:

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FOOD ENERGY

FOOD BIOENERGYFORESTS

• INTERNATIONAL AND NATIONAL DEMANDS: food & fuelINTERNATIONAL AND NATIONAL DEMANDS: food & fuel

• SUSTAINABLE USE OF LAND AND LANDSCAPESSUSTAINABLE USE OF LAND AND LANDSCAPES

• ADDED VALUE OF BIOENERGY MATERIALSADDED VALUE OF BIOENERGY MATERIALS

• INTEGRATION OF AGRICULTURE/FORESTSINTEGRATION OF AGRICULTURE/FORESTS

• DIVERSIFYING THE PORTFOLIO OF FARMER´S OPTIONSDIVERSIFYING THE PORTFOLIO OF FARMER´S OPTIONS

An land use approach:

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Energy demand in rural areas: still a problem to solve.....

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AFSenergetics

Soyacastor oilsunflowercotton

Oil seedcrops

chipsdebarking

chiping

energy

bark

pulping

pulppaper

biodiesel

wood

BIOREFINERY – An approach for the forestry, pulp and paper industry

ethanolmethanol

extractionhemicellulosescarbohydrates

fermentation

black liquor

destilation

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E2G

Second generation and feedstocks

Other feedstocks for ethanol second generation

Fonte:McMillan, 1994; Wood for Alcohol Fuels, 2002; Saad, 2005; IBGE; CONAB; SBS

6,600

11,549

22,933

3,919

4,000

2,000

115,000

72,600

64,029

80,747

2,937

94,600

38,700

460,000

9 a 13

5 a 8

3 a 4

4 a 6

22 a 24

18 a 20

3 a 5

Área[mil ha]

Área[mil ha]

Biomassa(Ano safra)Biomassa

(Ano safra)Produção[mil t/ano]Produção[mil t/ano]

Produtividade[t/ha.ano]

Produtividade[t/ha.ano]

Propriedades (%)Propriedades (%)

ligninalignina celulosecelulose hemicelulosehemicelulose

Potencialde uso

Potencialde uso

20

15

15 a 25

23 a 35

20

28

10 a 30

41

30 a 45

30 a 40

36 a 40

45

42

25 a 40

25

50 a 35

25 a 35

-

30

27

35 a 50

Alto

Médio

Médio

Médio

Alto

Médio

Baixo

6,600 72,600 9 a 13 26 2837 AltoPalhaCana

BagaçoCana

Resíduo milho

Resíduo de soja

Casca de arroz

Eucalipto

Pinus

Pastagem

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From resources to markets – opportunities

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Policies and enabling environment

Sectoral policies affecting bioenergy

•Energy•Transport•Agriculture•Environment•Conservation of biodiversity•Economics•etc

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Biofuels Certification – “The Babel of Certifications”

Biofuels Certification Meó Consulting Team

German Government

Sustainable Production of Biomass Cramer Commission Dutch Government

RTFO Renewable Transport Fuel Obligation

UK Government

National Certifications SEKAB, GREENERGY

Sweden, United Kingdom

RTSB Round Table on Sustainable Biofuels

Switzerland

EU Directives European Union

National Standards

Ethanol & Biodiesel

Several certification initiatives are under

discussion now

How to attend to all certification

discussions?

CERTIFICACAO

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Water streamWater stream

Water Water streamstream

Legal reservesLegal reserves

Fauna & Flora corridorsFauna & Flora corridors

Permanent protection area

Permanent protection area

PlantationsPlantations

ZoningZoning::

• Watershed protection;Watershed protection;

• BiodiversityBiodiversity

protectionprotection

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Biomassproduction

Other associatedprocess, i.e. co-products…

Environmental technologies

Biomass conversion technologies

Bioenergy&

Biofuels

Just the production of biofuels at competitive costs is not sufficient now …beyond yield

We need to understand biofuels externalities and energy balances

S& T - frameworks for supporting the full deployment of bioenergy and biofuels

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Brazilian frameworks supporting S&T&I in biofuels

• Good examples from Pro-Alcool - ca. US$ 2 billion – 30 years

•Federal level - Ministry of Science & Technology - Agencies – CNPq and FINEP

Ministry of Education - CAPES

• State level – SP - the case of FAPESP

•Innovation law in BR – being implemented – facilitate interactions between academia and private sector

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Players and investments in sugarcane & ethanol R&D in Brazil.

Crops and biofuels R&D

initiatives and

experience

More than 15 universities, 14 research centers and 150 researchers focus on biofuels in only one initiative (Bioetanol project)

Only in CTC (sugarcane technology center) more than 300 people work in R&D activities

Efforts are made to share knowledge between universities and research centers (ex: Bioetanol project, conferences)

International participation in R&D initiatives (Bioethanol Project, Oxiteno, Votorantim)

Country is a world leader in the production of sugarcane plants capital goods (ex: Dedini)

Innovation and

scientific achievement

on biofuels feedstocks

Investments in R&D

Productivity improvements through sugarcane genetic modifications, from 55 tons/ha in 1970 to 75 tons/ha in 2006

Almost 300 sugarcane varieties developed by CTC

Almost 80% of investments in biofuels in Brazil come from the private sector

In 2005 MCT (Science and Technology Ministry) invested US$840 MM in R&D, 21% of which went to agriculture-related research (US$176MM)

US$105 MM to be invested between 2003 and 2008 in agroenergy by MCT

Votorantim invested US$ 40 MM in biotechnology in the last 4 years developing 15 transgenic sugarcane varieties

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Biofuels framework for innovation

Business pipeline

Universities

AcademiaAcademia PrivatePrivate GovernmentGovernment

Foundations

Innovation agencies

Innovation centers

R&D

Agencies

Incubators

Tech parks

LAC

International exchange

•Internationalpartners

•Advisors•Partners’ networks

•Media•Business partners

•Seminars

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Concluding remarks - Four pillars on competitiveness 1/2

•Need for a global market for biofuels

•Improving the logistics

•Planning the future expansion sustainably

•Innovation

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Deploying the global opportunities – can´t afford not to have… 2/2

Concentration and concerted efforts: focus and scale

Continuity: 30 years of investments worthwhile – the Brazil case

Complementarity: bioenergy sources and expertise – need for an interdisciplinary approach

Commitment: to make a change

Coordination

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Thanks to

Organizers of the meetingUSP

BCB researchers:Ministry of Agriculture

USP

[email protected]

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