Ministério de Minas e Energia PERSPECTIVES FOR BIOFUELS IN BRAZIL Marco Antônio Almeida Secretary...

Ministério de Minas e Energia

PERSPECTIVES FOR BIOFUELS IN BRAZIL

Marco Antônio AlmeidaMarco Antônio AlmeidaSecretary of Oil, Natural Gas and Renewable FuelsSecretary of Oil, Natural Gas and Renewable Fuels

June, 18June, 18th.th. 2012 2012

BRAZIL – ASEAN COUNTRIES MEETINGBRAZIL – ASEAN COUNTRIES MEETING


Introduction Regulatory Framework and Public Policies for Ethanol and Biodiesel

(Agro-ecological Zoning and Social Fuel Certificate) Uses in other sectors (P&D – Bioplastics / Biochemicals) Infrastructure Projects for Ethanol in Brazil International cooperation in bioenergy Final Remarks

The Perspectives for Biofuels in BrazilThe Perspectives for Biofuels in Brazil


Fuel Mix - 2011 and Recent EvolutionFuel Mix - 2011 and Recent Evolution

Source: MME (2011)

Highlights:

1. Biodiesel growth;

2. Ethanol shortening.

* Automotive use only

2010 2011 Var (2011/2010)

Hydrated (E100) 16,9% 12,2% -27,51%Anhydrous Ethanol 7,4% 8,4% 13,00%Total Ethanol 24,3% 20,6% -15,15%Gasoline 23,4% 27,0% 15,43%Diesel 47,7% 47,7% 0,05%Biodiesel 2,5% 2,7% 6,65%VNG 2,1% 2,0% -6,22%


Ethanol Forecast (PDE 2020)Ethanol Forecast (PDE 2020)million m³

Ethanol for Internal Fuel Market

Ethanol for Exports

Closed Figures for 2011

20.6

2.0


Ethanol Use Benefits in BrazilEthanol Use Benefits in Brazil

Efective Economy of 1.6 billion boe or 2 years of the Brazilian oil production today*

* Considers Daily Production in Brazil of 2,200,000 Barrels of Oil per day

IN THIS PERIOD, DUE TO ETHANOL USAGE, IT WAS AVOIDED THE EMISSIONS OF 950 MILLIONS OF TONS OF CO2


Source: MME / PDE 2011-2020/ (Biodiesel demand projection for B5)

Only the natural growth of B5 will demandOnly the natural growth of B5 will demand

3.8 billion liters in 20203.8 billion liters in 2020

Demand Expected for B5

Installed Capacity (2011)

Total oil and fatty acid produced

Mill

ion

m³

Biodiesel Forecast (PDE 2020)Biodiesel Forecast (PDE 2020)


Policy and Regulatory FrameworkPolicy and Regulatory Framework

One of the Brazilian energy policy targets is to increase the share of biofuels in the national energy mix.

The main general instruments include: Mandatory mix: ethanol (E18-25) and biodiesel (B5).Stimulate flex-fuel fleetTax differentiation regime in federal level.Line of credit for ethanol strategic buffer stocks (conceived to improve off-season supply conditions).Public auctions for biodiesel market supply.Agro-ecological zoning that orients and guarantees that raw-material production will take place only in suitable areas. The Brazilian government managed to conclude the sugarcane (2009) and palm oil (2010).


Recent Modifications on Biofuels RegulationRecent Modifications on Biofuels Regulation

Biofuels are now treated as fuels inserted in the Brazilian energy mix and not only as an agriculture product. This understanding is boosted by the ethanol and biodiesel growing utilization, both in Brazil and abroad, that demonstrates the relevant role and potential of biofuels.

Both ethanol and biodiesel have an uniform treatment regarding their role in National Energy Policy.

The National Energy Policy Council (CNPE) has, from now on, authority to establish the directions for biofuels imports and exports in the same way that it already has for all oil derivatives such as gasoline, diesel and jet fuel.


Biodiesel PolicyBiodiesel Policy

The mandatory policy of B5 is the most important incentive and it is guaranteed through trimestral public auctions;

Tax policy regime according to the region in which biodiesel is produced and also the type of agriculture that provides all or part of raw material;

The industry that buy, at least, a defined amount of raw-material from small agriculture receive a Social Fuel Certificate - SFC;

The amount of raw-material required differs depending on the agriculture region:South, Southeast and Northeast – 30%North and Midwest – 15%

80% of the market is reserved to producers that owns a SFC The government is now focusing on policies to induce the diversification of raw-

materials for biodiesel production (palm oil, jatropha etc.).


Social Fuel Certificate ResultsSocial Fuel Certificate ResultsFa

milie

s

US$ / Family per Year

Total Biodiesel Production

Total Income of the Families due to Biodiesel

Source: MDA, MME (2011)

m³


New Uses in Other Sectors (P&D)New Uses in Other Sectors (P&D)

The BNDES launched PAISS (Joint Programme of Technological and Innovation Support for Sugarcane Sector), were selected from 25 companies that submitted 35 business plans, which will generate investments of about $ 3 billion. The PAISS fosters research and development of cellulosic ethanol. If made viable

economically, the cellulosic ethanol could increase the productivity of the sector in more than 40%.

Among the entities who study the processes of production of ethanol from lignocellulose in Brazil, stand out: CENPES - Petrobras; Laboratório Nacional de Ciência e Tecnologia do Bioetanol (CTBE) - MCT; Centro de Tecnologia Canavieira – CTC; Embrapa Agroenergia; Dedini S/A Indústrias de Base.


Bioplastics in Ten Years From NowBioplastics in Ten Years From Now

In 2011, the demand for non-fuel ethanol (other uses) has reached 1.1 billion liters.

It is estimated that demand for non-fuel ethanol (other uses) will reach 3.5 billion liters in 2020 (PDE 2020).• 14% growth rate.


Land Use in BrazilLand Use in Brazil

Total Area Native Vegetation Arable Land

AvailablePasture

Agriculture Sugarcane

2009 Data Source: ICONE, ESALQ and IBGE. Elaboration: COSAN and UNICA

Others 152%


AgriculturalAgricultural ZoningZoning

Sugarcane Expansion withAgroecological Requirements

Agrozoning for Soy, Sunflower, Castor,

Palm, Cotton Seed etc.

Maximum allowed: 65 million ha

or 7,5% of the territory (green areas)

Agricultural zoning as a guarantee for public and private investments and a recommendation of suitable areas for production

North RegionFocus = arc of deforestation

Northeast Region

Focus = coast areas

Maximum allowed: 32 million ha

or 3,7% of the territory (brown areas)


Dedicated Infrastructure for Ethanol DistributionDedicated Infrastructure for Ethanol Distribution

ANHEMBÍ

PR

SP

MS

RJ

CARAGUATATUBA

RIBEIRÃOPRETO

UBERABA

ITUMBIARA

JATAÍ

QUIRINÓPOLIS

GO

GUARULHOS

BARUERI

PRESIDENTE EPITÁCIO

REVAP

PAULÍNIA

RIO DE JANEIRO/ TERMINAL

ILHA D’ ÁGUA

GUARAREMA

ARAÇATUBA

APARECIDA TABOADO

Out/13

Out/13

Out/16

MG

Out/16

Dec/14

Mar/13

Ago/15Jul/12

Out/14

Out/14

Jul/14

Jul/13

5,2 Mm³

0,8 Mm³

Dutos já licenciados

Hidrovia

Dutos não licenciados

Dutos de exportação

Sistema de dutos existente

Trecho já licenciado -exportação

2,0 Mm³

7,4 Mm³ / ano

11,7 Mm³2,5 Mm³

2,3 Mm³

4,0 Mm³

9,1 Mm³

7 Mm³

4 Mm³6,2 Mm³14,6 Mm³

3,6 Mm³

80 barcaças

1800 km of dedicated pipelinesUS$ 4.2 billions16 Terminals


Bioenergy International CooperationBioenergy International Cooperation

* Includes MoUs, partnerships and other agreements signed directly by any Federal Government Department or Agency or Public Enterprise. It was considered bilateral agreements, cooperation in third countries and agreements signed with economic or regional blocks.

Map of International Agreements on Bioenergy sign by Brazilian Representatives

77 countriesNearly 1/3 of the

whole nations


Brazil has already financed feasibility studies on bioenergy projects in six countries in Central America and in six countries in Africa:

• El Salvador, Haiti, Dominican Republic, Saint Kitts & Nevis, Honduras, Guatemala, Senegal, Guinea-Bissau, Guinea-Conakry, Liberia, Mozambique e Zambia. Angola and Tanzania are the next candidates.

Business models designed for these countries have demonstrated the economic, social and environmental viability of projects for sugarcane production and ethanol distilleries, production of vegetable oils and biodiesel, biomass power plants for electricity generation, and production of wood and pellets.

Feasibility Studies on BioenergyFeasibility Studies on Bioenergy


Feasibility Studies – HondurasFeasibility Studies – HondurasAgroclimatic ZoningAgroclimatic Zoning Soil ZoningSoil Zoning

Environmental ZoningEnvironmental Zoning

Rain DataRain Data

Average TemperatureAverage Temperature

Hydrous DeficiencyHydrous Deficiency

EvapotranspirationEvapotranspiration

Humid AreasHumid Areas SoilSoil

Slope AreasSlope Areas

Protected AreasProtected Areas Areas with Human ActivitiesAreas with Human Activities

Climatic and Soil ZoningClimatic and Soil Zoning

Final result: A biomass cogeneration project has been approved in Honduras and its Executive Project is to be finished soon. Similarly, Senegal, Mozambique and Zambia also have projects (ethanol and biomass) in the same phase.


End result:Identification of suitable areas that will be checked later in field visits to assess the infrastructure and the vocation for the implementation of local productive arrangement for a particular type of project.

Feasibility Studies – GuatemalaFeasibility Studies – Guatemala


Sustainability – Work on GBEPSustainability – Work on GBEP

Global Bioenergy Partnership (GBEP) – Initiative proposed by the G8 and led by Italy, with Brazil later joined and acted as co-chair along with Italy.

In January this year, GBEP published the report "The Global Bioenergy Partnership Sustainability Indicators for Bioenergy", which presents the 24 selected indicators for sustainable production and use of bioenergy.

The GBEP sustainability assessment through the 24 proposed indicators will evaluate, in each case, the real contribution of a given project to improve the conditions of a country or locality, as well as interpreting to the environmental, social and economic impacts of their bioenergy production and use.


Final RemarksFinal Remarks

Changes in the regulatory framework for biofuels in Brazil have been implemented to focus on the character of the energy aspect of biofuels and expanding Regulatory Agency powers;

Brazil supports the ethanol commoditization, with many countries producing and consuming the energetic;

There are investment opportunities in Brazil for the expansion of bioenergy production, both in new plants and in infrastructure;

International cooperation is of great importance to Brazil because the country defends biofuels as a driver for development in countries with low access to energy.

Even with the Presalt discoveries, Brazil preserve the compromise to have the cleanest energetic matrix within developed and developing countries.


THANK YOU!THANK YOU!

Marco Antônio Martins AlmeidaMarco Antônio Martins AlmeidaSecretary of Oil, Natural Gas and Renewable FuelsSecretary of Oil, Natural Gas and Renewable Fuels

e-mail: [email protected]: [email protected]

June, 18June, 18th.th. 2012 2012

Ministério de Minas e Energia PERSPECTIVES FOR BIOFUELS IN BRAZIL Marco Antônio Almeida Secretary...

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Transcript of Ministério de Minas e Energia PERSPECTIVES FOR BIOFUELS IN BRAZIL Marco Antônio Almeida Secretary...