BRAZILIAN MARKET ETHANOL

**ETHANOL FUEL OF THE FUTURE(Henry Ford - 1906)Ethanol first became popular as a fuel with the model T. (above) Henry Ford mixed ethanol with gasoline to run this machine. In 1850, 90 million gallons were produced in The United States.

****The Bazilian Ethanol Programme Pro AlcoholAdopted in 1975 due to the international petrol crisis:1 Adding ethanol to gasoline2 Incentive for development of vehicles 100% on ethanol

Why Ethanol?

- Brazil has been one of the main producers of sugar cane since century XVI.- Since 1930 (especially during the 2nd World War),ethanol mixed with gasoline has been used as automotive fuel in Brazil with good results.

****Domestic sales of automobiles and light vehicles per fuelSource: Anfavea

Grfico3

0464682416

03770102112

26300287321

3361887389

1343210688045

2492162377804

2431205184743

3642191783025

4131292295151

86863616104388

117783416104242

13646369399065

13123295991101

15654277796606

174573387105125

23626354483629

22821394283632

27388379684432

30804381586188

31422558985584

36046566887566

30776511585707

35457525291402

43805510696973

26342315564637

31937328772365

50230308086218

55106226571734

67560276059237

71747266456905

78245135047477

90340237747084

91210234738694

88466225935156

104209152334955

110875157231166

91526102727573

9300020823450

11496117326471

955969622826

Combustible Flexible

Alcohol

Gasohol

Plan1

Jan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03Aug-03Sep-03Oct-03Nov-03Dec-03Jan-04Feb-04Mar-04Apr-04May-04Jun-04Jul-04Aug-04Sep-04Oct-04Nov-04Dec-04Jan-05Feb-05Mar-05Apr-05May-05Jun-05Jul-05Aug-05Sep-05Oct-05Nov-05Dec-05Jan-06Feb-06Mar-06Apr-06

Flex Fuel002631,3432,4922,4313,6424,1318,68611,77813,64613,12315,65417,45723,62622,82127,38830,80431,42236,04630,77635,45743,80526,34231,93750,23055,10667,56071,74778,24590,34091,21088,466104,209110,87591,52693,000114,96195,596

lcool4,6463,7703,0023,6182,1061,6232,0511,9172,9223,6163,4163,6932,9592,7773,3873,5443,9423,7963,8155,5895,6685,1155,2525,1063,1553,2873,0802,2652,7602,6641,3502,3772,3472,2591,5231,5721,02720817396

Gasohol82,416102,11287,32187,38988,04577,80484,74383,02595,151104,388104,24299,06591,10196,606105,12583,62983,63284,43286,18885,58487,56685,70791,40296,97364,63772,36586,21871,73459,23756,90547,47747,08438,69435,15634,95531,16627,57323,45026,47122,826

Combustible FlexibleAlcoholGasohol

Jan-0304,64682,416

Feb-0303,770102,112

Mar-03263,00287,321

Apr-0333,61887,389

May-031,3432,10688,045

Jun-032,4921,62377,804

Jul-032,4312,05184,743

Aug-033,6421,91783,025

Sep-034,1312,92295,151

Oct-038,6863,616104,388

Nov-0311,7783,416104,242

Dec-0313,6463,69399,065

Jan-0413,1232,95991,101

Feb-0415,6542,77796,606

Mar-0417,4573,387105,125

Apr-0423,6263,54483,629

May-0422,8213,94283,632

Jun-0427,3883,79684,432

Jul-0430,8043,81586,188

Aug-0431,4225,58985,584

Sep-0436,0465,66887,566

Oct-0430,7765,11585,707

Nov-0435,4575,25291,402

Dec-0443,8055,10696,973

Jan-0526,3423,15564,637

Feb-0531,9373,28772,365

Mar-0550,2303,08086,218

Apr-0555,1062,26571,734

May-0567,5602,76059,237

Jun-0571,7472,66456,905

Jul-0578,2451,35047,477

Aug-0590,3402,37747,084

Sep-0591,2102,34738,694

Oct-0588,4662,25935,156

Nov-05104,2091,52334,955

Dec-05110,8751,57231,166

Jan-0691,5261,02727,573

Feb-0693,00020823,450

Mar-06114,96117326,471

Apr-0695,5969622,826

Plan1

000

000

000

000

000

000

000

000

000

000

000

000

000

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000

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000

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000

000

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000

000

000

000

000

000

000

000

000

000

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000

000

000

Combustible Flexible

Alcohol

Gasohol

Plan2

Plan3

Productive Chain of Sugar in Brazil

Credits of Carbon

5,4 million hectars72 thousand growers334 mills & destilleries(operation & projects)Harvest380 million tonsETHANOL3,6 billion gallonsSUGAR24 million tonsBAGASS

Bioplastic

EthanolFoodPharmacyLisineDerivatives

*BRAZILIAN PROCESS

**+69%Fao Stat databaseEvolution of sugarcane in Brazil

**+ 420 %Fao Stat databaseEvolution of sugarcane in Brazil

****Sources: IBGE & CTC Atlantic Rain ForestSugar CanePantanalAMAZON RAIN FORESTNew expansion areas for sugar cane growing

Ethanol Brazilian Production

****Ethanol production projection in Brazil between harvests 2005/06 and 2015/16Source: IEAHarvestThou. Million of liters

Brazilian Ethanol Exportation Projection0.00.51.01.52.02.53.03.54.04.52004/052005/062006/072007/082008/092009/10Billion of liters

******Energy Matrix 2005Source: MME

Grfico1

0.297

0.384

0.093

0.064

0.012

0.15

Hydroenergy and Electricity15%

Uranium1%

Coal6%

Natural Gas9%

Petroleum and Derivatives39%

Biomass30%

Plan1

22695

BrasilPanam

Biomasa29.70%Biomasa21.71%

Petrleo e Derivados38.40%Petrleo e Derivados55.59%

Gas Natural9.30%Hidrulica y Electricidad22.70%

Carbn Mineral6.40%

Uranio1.20%

Hidrulica y Electricidad15.00%

Plan1

0

0

0

0

0

0

Biomasa30%

Petrleo e Derivados39%

Gas Natural9%

Carbn Mineral6%

Uranio1%

Hidrulica y Electricidad15%

Plan2

0

0

0

Petrleo e Derivados55%

Hidrulica y Electricidad23%

Biomasa22%

Plan3

****Benefits to the ozone layer in the AtmosphereGasoline 0%Gasohol 22 %Ethanol 100%Source: ANFAVEA

****

****Ethanol Cluster - APLA

APLA is an entity that seeks to unite all the ethanol productive chain,which is composed of industries that produce equipment, research and technical development centers, associations of the ethanol sector and producers:

- 10 distilleries- 70 industries - 05 Institutions and Research and Development Centers- 19 Public and Private Entities- Harvest - 16,7 million tons- Ethanol Production - 502 million liters- Sugar - 1.380 thousand tons- Energy - 172.900 mw/year

****APLA - Objectives- Planning and Organization of the Sector.

Association with government and private entities for development of the ethanol productive chain.

Advertisement of the products and services rendered by the companies.

Statistical Data Bank and Information Center.

Standardization and certification of ethanol and development of new technologies & equipment .

Development of executive project for logistic and production flow of the Ethanol Cluster area .

Studies and researches for new applications, markets and products derived from ethanol.

**New projects of distilleries anywhere in the world

Products, Services and BrazilianTechnology AvailablePhoto: Unica Economical feasibility studies and analysis of area/soils and weather feasibility Supply of sprouts and productive & resitant genetic diversity Technology for plague control and combat

**** Machinery and Equipment for cutting, loading and transportation Turn-Key Plants . Sugar & Ethanol Plants. Ethanol Destilleries. Energy co-generation using bagass. Biodiesel PlantsPhoto: DediniPhoto: UnicaPhoto: Motocana Consulting and follow-up of all process of the productive chain Professional Qualification Products, Services and Brazilian Technology Available

**BUSINESS PROPOSALS 1 Ethanol Production Projects anywhere in the world:. Supply technology, render services and products . Studies of Economical Feasibility . Projects Implementation

2 - Exportation of Brazilian ethanol to the United Kingdon:. Strategic plan. Public policies. Local fuel distributors. Contacts with Brazilian producers. Logistic operators and traders

3 Association with Brazilian companies for production of ethanol in Brazil. Contact with Producers Associations. Brazilian society legislation. Economical feasibility projects. Research Centers and Universities

****APLA - MembersMinistrio de Desenvolvimento,Indstria e Comrcio Exterior

****ContactsAPLA Ethanol ClusterMunicipal Department of Industry and Commerce of Piracicaba So Paulo - BrazilPhone: 55 19 3403-1160E-mail: semic@piracicaba.sp.gov.br

**THANK YOULuciano Santos Tavares de AlmeidaSecretary of Industry and CommercePiracicaba - So Paulo - BrazilTel: 55 19 3403-1160E-mail: l.almeida@piracicaba.sp.gov.br