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BIOFUELS IN BRAZILBIOFUELS IN BRAZIL
RIO6 / Rio de Janeiro RIO6 / Rio de Janeiro –– November,
2006November, 2006
MINISTRY OF AGRICULTURE, LIVESTOCK AND FOOD SUPPLY
Secretary of Production and Agrienergy
ALEXANDRE BETINARDI STRAPASSON
General Coordinator for Ethanol and Sugar Affairs
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BRAZIL HAS A GREAT POTENTIAL FOR BIOFUELS PRODUCTION...BRAZIL
HAS A GREAT POTENTIAL FOR BIOFUELS PRODUCTION...
30O
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THE NATIONAL AGRIENERGY PLAN
- ETHANOL
- BIODIESEL
- AGRICULTURE WASTES
- ENERGETIC FORESTS
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ETHANOL: AN ESTABLISHED FUEL IN BRAZILETHANOL: AN ESTABLISHED
FUEL IN BRAZIL
A CLEAN, GREEN AND A CLEAN, GREEN AND
RENEWABLE ENERGYRENEWABLE ENERGY
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THE BRAZILIAN SUGAR CANE AND THE BRAZILIAN SUGAR CANE AND
ETHANOL EXPERIENCESETHANOL EXPERIENCES
1532: Martim Afonso de Sousa 1532: Martim Afonso de Sousa
introducesintroduces sugar sugar canecane in in BrazilBrazil
1925: 1925: FirstFirst ethanolethanol poweredpowered
vehiclevehicletestedtested in in BrazilBrazil
1979: 1979: FirstFirst commercialcommercial ethanolethanol
movedmovedvehiclevehicle in in BrazilBrazil2003:2003:
FlexFlex fuelfuel motorsmotors arearelaunchedlaunched
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BRAZILIAN ETHANOL PRODUCTION
0
5,000
10,000
15,000
20,000
25,000
30,000
64/65
66/67
68/69
70/71
72/73
74/75
76/77
78/79
80/81
82/83
84/85
86/87
88/89
90/91
92/93
94/95
96/97
98/99
00/01
02/03
04/05
06/07
08/09
10/11
12/13
Mill
ion
liter
s
1st Stage: sugar cane destined only for sugar
2nd Stage: hydrous ethanol.Governmental intervention on the
market.
3rd Stage: anhydrous ethanol.
High sugar exports.
Oil prices stabilized
4th Stage: free market.Flex fuel vehicles.High international
sugar and ethanol demands.Top oil prices.GHG emission targets.
Oil crisis
PROÁLCOOL Kyoto Protocol
hydrous
anhydrous
total
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BRAZILIAN CROP-YEAR PERFORMANCES2005/2006 AND 2006/2007
SUGAR CANESUGAR CANE
CROP-YEAR 2005/06 CROP-YEAR 2006/07* Quantity %
Total Production 382,4 425,0 42,6 11,1%
Destined to Sugar 189,2 213,8 24,6 13,0%Destined to Ethanol
193,2 211,2 18,0 9,3%
Total Production 26,20 29,50 3,30 12,6%
Domestic Consumption 10,20 10,50 0,3 2,9%Exporting 17,25 19,50
2,3 13,0%
Passage Stock 1,95 1,45 -0,5 -25,6%Total Production 15,80 17,25
1,5 9,2%
Domestic Consumption 13,50 13,50 0,0 0,0%Exporting 2,50 3,50 1,0
40,0%
Passage Stock 0,84 1,09 0,3 29,8%
Variation between Crops 05/06 and 06/07
Sugar Cane (million tons)
Sugar (million tons)
Ethanol (billion liters)
ProductionProduction
Source: SPAE/MAPA - 12/07/06
* Foresight
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SUGAR CANE PERFORMANCES IN BRAZIL
Crop-Year 2000/01 2001/02 2002/03 2003/04 2004/04 2005/06Sugar
cane production for all
purposes (Million ton)
326,1 344,3 363,7 389,9 416,6 421,8
Planted Area (Millon ha) (1) 4,88 5,02 5,10 5,50 5,69 5,87
Sugar cane to sugar and ethanol production (Million ha) (2)
254,9 292,3 316,1 357,3 381,4 382,4
Sugar per ton of sugar cane (Kilos) 132,8 131,5 137,8 139,4
137,5 137,7
Sugar per hectare (ton) 8,88 9,02 9,83 9,89 10,07 10,18
Ethanol per ton of sugar cane (liters) 78,3 77,5 81,2 82,2 80,8
81,2
Ethanol per hectare (thousand liters) 5,23 5,32 5,80 5,83 5,92
6,00
Source:
(1) Brazilian Institute of Geographical Statistics - IBGE
(2) Ministry of Agriculture, Livestock and Food Supply -
MAPA
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WHY ETHANOL? WHY ETHANOL?
- RenewableRenewable energyenergy;;
-- Safe Safe andand efficcientefficcient;;
-- EasyEasy to to produceproduce in in largelarge
scalescale;;
-- LowLow pollutantpollutant;;
-- GenerateGenerate newnew jobsjobs, , speciallyspecially in in
thethe rural rural areaarea;;
-- EasilyEasily to to indroduceindroduce in in thethe
cosumercosumer marketmarket ((purepure oror mixedmixed withwith
gasolinegasoline););
-- Sugar Sugar canecane hashas highhigh productivityproductivity
andand minimumminimum environmentenvironment impactsimpacts;;
-- RelativelyRelatively lowlow productionproduction costscosts
(~ US$ 0,30/L at (~ US$ 0,30/L at thethe millmill, , withoutwithout
taxes);taxes);
-- TheThe sugar sugar canecane wasteswastes are are
importantimportant productsproducts ((bagassebagasse cancan bebe
usedused to to generategenerate heatheat andand
electricityelectricity, , includingincluding to to thethe gridgrid
/ / VinassesVinasses cancan bebe usedused as as a a
fertilizingfertilizing););
-- LowLow consumptionconsumption of of externalexternal
energyenergy in in thethe productionproduction processprocess..
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ENERGY EFFICIENCY OF ETHANOL IN BRAZIL ENERGY EFFICIENCY OF
ETHANOL IN BRAZIL
ETHANOL
CO2
8.3Sugar Cane21.9Sugar Beet1
1.3 – 1.8Corn11.2Wheat1
Energy output / Energy inputRaw material
1 F.O. Licht, 2004.2 Macedo, I et al., 2004 – Under Brazilian
production conditions.
- High photosynthesis efficiency (C4 crop).
- Possibility for using the sugar cane by-products in the
production process, avoiding external energy sources.
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COCO--GENERATION WITH SUGAR CANE BAGASSE GENERATION WITH SUGAR
CANE BAGASSE
CURRENT POWER: 2.000 MW
(700 MW are exported to the grid)
ACTUAL MEASURED POTENTIAL:
3.000 MW to 14.000 MW
Depending of the technology applied in the generation
process.
- Possibility to obtain carbon credits from CDM Projects (Kyoto
Protocol)
- Complementary to the hydraulic generation in the Brazilian
Center-South Region
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THE USES OF VINASSES IN BRAZIL
Good fertilizant: high amount of potassium (K2O)
Vinasses can be applied on the soil by irrigation
A new technology is being developed in Brazil: to dehydrate and
transform vinasses into a new commercial product
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THE FLEX FUEL CAR THE FLEX FUEL CAR –– A NEW DOMESTIC ETHANOL
DEMAND A NEW DOMESTIC ETHANOL DEMAND
• Flex-Fuel Engine: allows the use of Ethanol or Gasoline in any
concentration of these fuels
• Current Manufactures: VW,GM, Ford, Fiat, Renault, Peugeot and
Citroen
• Sales of Flex-Fuel Vehicles:
- 2003: 48.000 units
- 2004: 330.000 units
- 2005: 865.000 units
- 2006 (October): 1.100.000 units
Around 80% of the new light-dutyvehicle sales in Brazil are flex
fuel.
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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?
NEW AREAS OF SUGAR CANE NECESSARY TO SUPPLY THE EXTERNAL SUGAR
AND INTERNAL ETHANOL DEMAND FORESIGHTED FOR 2013:
~ 3 million hectares
TOTAL SUGAR CANE CULTIVATED AREA IN BRAZIL TODAY:
~ 6 million hectares (less than 1% of the Brazilian
territory)
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NORTH/NORTHEAST REGION
15% of national sugar cane production
CENTER-SOUTH REGION
85% of national sugar cane production
WHERE DOES BRAZIL PRODUCE SUGAR CANE?WHERE DOES BRAZIL PRODUCE
SUGAR CANE?
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SLOPE > 12%
AMAZON REGION
ATLANTIC FOREST
TOTAL AREA WITHOUT ENVIRONMENTALRESTRICTIONS . . . . . . . . . .
. .
437,2 MM hectares
AREA WITH SLOPEABOVE 12% . . . . . . . . . . . . . . 75,6 MM
hectares
TOTAL AVAILABLE ANDSUITABLE LAND . . . . . . . . . . 361,6MM
hectares
PANTANAL(SWAMPLAND) SLOPE
> 12%
SLOPE
< 12%
HOW TO EXPAND SUGAR CANE WITH SUSTAINABILITY?
AREAS FOR EXPANSION
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Caption:High
Middle
Low
Improper
.
.
Source: UNICAMP & CGEE/MCT
ADEQUATE SOIL AND CLIMATE FOR SUGAR CANE PRODUCTION IN BRAZIL
ADEQUATE SOIL AND CLIMATE FOR SUGAR CANE PRODUCTION IN BRAZIL ––
WHITOUT IRRIGATION REQUIRED WHITOUT IRRIGATION REQUIRED --
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THE ETHANOL INTERNATIONAL DEMAND IS INCREASINGTHE ETHANOL
INTERNATIONAL DEMAND IS INCREASING
YEARS Million US$ F.O.B. Liters (Billion) Average US$/m³
1997 54 0,146 370,091998 36 0,118 301,211999 66 0,407 161,702000
35 0,227 153,072001 92 0,346 266,572002 169 0,759 222,862003 158
0,757 208,562004 498 2,408 206,682005 766 2,592 295,31
Source: Secex (Alice System)
And so are the brazilian exports...
The Brazilian aim is to transform ethanol in a great commodity,
together with other countries
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WHERE AND HOW THE EXPANSION IS HAPPENNIG ?
Source: UNICA – April 2006
North-Northeast 10 2 0 8 0
South-Centre 79 9 28 38 4
BRAZIL 89 11 28 46 4Source: UNICA
REGION TOTAL
MILLS
Restarting activities
Under construction Projected
Under analyses
Forecast until 2010
Current Brazilian capacity: 355 mills
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BIODIESEL: A PRODUCT FOR THE FUTURE
Source: MAPA/Embrapa
Sunflower
Peanut
Cotton seed
Castor
Soybean
Palm Tree
Biodiesel mixed with diesel
2005-2007: 2% authorized
2008-2012: 2% mandatory
2013...: 5% mandatory
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THANK YOU!THANK YOU!OBRIGADO!OBRIGADO!
Alexandre Betinardi Strapasson
+ 55 61 3218-2147 / 3218-2194
[email protected]
www.agricultura.gov.br
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...LEADING TO A RENEWABLE ENERGY MIX...LEADING TO A RENEWABLE
ENERGY MIX
BRAZILIAN ENERGY MIX
WORLD ENERGY MIX
Source: MME/BEN, 2006
Biomass; 29,7%
Coal; 6,4%
Natural gas; 9,3%
Hydraulic and Electricity; 15,0%
Oil and Oil Products; 38,4%
Uraniun; 1,2%
Biomass; 11,2%Coal; 24,1%
Natural gas; 20,9%
Hydraulic and Electricity; 2,1%
Oil and Oil Products; 35,3%
Uraniun; 6,4%
Share of renewable energy in the total primary energy: 45%
Share of renewable energy in the powergeneration: 85%