Northeast Brazil: Sugarcane based

Ethanol etanol

HistorySugarcane:•16th century: Portuguese introduce plantations and sugarcane to NE Brazilian coast•By the end of the 16th century, Brazil is one the world’s richest colonies due to high European demand for sugar•Indigenous slave labor not valued; sugar demand and african slave import•“Ideal’ model of success assumed and sugar plantations w/ African labor grows into Amazon region. Not successful due to unsuitable land.

Bahia Amazon

Ethanol Properties• Fermentation: Prime process; microbial conversion of

sugar in plant material. It leads directly to ethanol, CO2 and other by-products.

• Recovery of ethanol from fermentation broth:1. Distillation of the dilute alcohol to its azeotrope (95-57% ethanol by weight);2. Distillation utilizing a 3rd component (organic solvent or strong dehydrating agent) to break up the azeotrope and remove the remaining H20;3. Distillation to separate H20 from the 3rd component to give absolute alcohol and allow the 3rd component to be recycled.

Sugarcane Ethanol Yields

SugarcaneCrop yield t/ha Commercial mean Realistic range

8050-120

Ethanol: ton of crop required to give 1 ton ethanol Equivalent mean range

18.914-30

Ethanol: litres of ethanol produced by 1 ton of crop Equivalent mean range

7060-75

Ethanol: ton ethanol/ha Equivalent mean range

4.73-9.5

Ethanol: litres/ha Equivalent mean range

60003800-12000

Carbohydrate content % mean range

Sucrose1512-17

Source: Humphreys and Glasgow Ltd., 1980

Sugarcane Characteristics

Material % of sugar as glucose

Growth cycle (months)

Agricultural Productivity t/ha

Average Yield

litre/ton litre/ha

Sugarcane 13-17 18 50 67 3350Source: Ribeiro Filho, 1979

•Stalks of sugarcane over 20 years old still stand•Agricultural productivity must be >40 t/ha to be industrially and financially viable

HistoryEthanol:

1897Nikolas A. Otto used pure alcohol in an engine for the 1st time

Conference in Bahia on the Sugar Industry leads to document on Industrial Applications based on ethanol 1902

1907US Dept of Agr. publishes report called “Use of Alcohol and Gasoline in Farm Engines”

Use of alcohol in official vehicles made compulsory for 1st time in Pernambuco 1919

1925Ford makes pure alcohol circuit

Locomotive travels from Rio to São Paulo on methanol mixture of 5% ethyl ether 1930

1931Commision of Defence for Alcohol Production created

HistoryMinistry of Agriculture authorized to assign contracts to support sugar mills for pure alcohol production 1932

1933Institute of Sugar and Alcohol (IAA) established

European consumption of alcohol based fuel tops ½ mill. tons /yr 1939

1942Minimum price (P) for alcohol is established for a 4 yr min.

Avg. annual ethanol content in ethanol/gasoline blends reaches 40% in NE Brazil 1942-1956

1960-1965 sugar P in intl. market and low petroleum P reduces role of ethanol in Brazil. Law No. 4.452 modifies tax legislation on fuels and introduces an additional one alcohol

History sugar P in intl. market. Upper limit of alcohol/gasoline blends from 5%-10% 1966-1967

Fleet tests begin for neat-ethanol (Otto) car engines. Blend reaches 45% ethanol and deploys 5% of Brazil’s gasoline D 1977

198210% of total passenger cars or 1.2 million Otto engines projected

197850 blending centers supply ethanol/gasoline blends of up to 60% ethanol. 11% Brazilian D for gasoline displaced

1973Oil Crisis beginsPNA (Natl. Alcohol Program) created to promote ethanol production. Plan was to alcohol use and displace Brazil’s gasoline demand (D)

Beginning of manufacture of neat-ethanol cars by auto industry and selling of neat alcohol fuel at service stations.14% of Brazil’s gasoline D is displaced 1979

1970 1973 1976 19790%5%

10%15%20%25%30%35%40%45%50%

% of expenses w/ crude oil import related to total incomeof Brazilian

exports

Expansion Period

1977 1978 1979 1980 1982 19850

2

4

6

8

10

12

E Production

E ProductionLinear (E Production)

Mill

m3

of E

History

90% of Brazil’s automotive industry were E100

Late 1980’s

2003Flex Fuels introduced. cars may run on E100, on E25, or any combination if the 2

Ethanol market is deregulated and subsidies are removed

2000

1990Brazil automotive industry reduces to only 10% due to ethanol shortage

Mandate of atleast E25 in all vehicles established.

June 2007

October 2008Brazil has 33,000 gas stations offering ethanol next to gasoline

Food vs. Fuel and Environment

Anti-energy crops• Compete w/ food crops for land• Compete for rural investment

which might be used to raise food crops

• Use food as a feedstock for industry rather than food for people and their animals

• Compete for water supplies-fermentation requires large quantities of water (16 litres/litre of alcohol)

Energy crop enthusiasts• Energy crops are in addition

to food crops• Energy crop programmes

will reduce oil import bills and save foreign exchange- which might be used to buy necessary food on the world grain market

1980 arguments

Food vs. Fuel and Environment

Anti-energy crop

• Cattle and food crops being displaced

• Deforestation• Soil Degradation• October 2008: speculation

that 400,000 jobs will be lost due to growing mechanization

• Increased mechanization will decrease GHG emission reduction

Energy crop enthusiasts• Food + Fuel• Sugarcane mills are self-

sufficient. • 1975-2000: Deployment of

gasoline w ethanol reduced carbon emissions by 100 million tons.

• Brazil is energy independent• Government promises that not

a single stalk of sugar cane will be found in the rainforest

Current Arguments

Source: Unicamp 2007

Multigrain• Owned by Japan’s Mitsui & Co Ltd; U.S. CHS Inc.;

and Brazil’s PMG Trading SA• Pres. Paulo Garcez: “We plan to sell the ethanol

on the local market initially and, in a 2nd phase, export it”

• 2003: bought 1st farm in Bahia for cotton and soy• Owns Xingu, large farm (50mi width)• Invested over $400mil just in land•

Xingu• Owned by Multigrain, large farm (50mi width)• Invested over $400mil just in land• Includes:– Grain crushing plant– 200 houses for workers– School– Hospital– Church

Xingu• Self sufficient in water• Plans for self sufficiency in electricity:– Construct $350mil ethanol mill cogeneration

thermal energy plant

Sustainability Criteria

• Certification process: could impose new barriers for Intl trade

• Zoning: Adequate areas determined by:– a) soil and weather adequacy – b) topography – c) water availability and requirements – d)sugarcane can’t be planted in sensible

ecosystems – e) areas where other crops have been produced

Agro-environmental ProtocolSão Paulo

Future•Europe: Discussion of certification process•Majority of growth to take place in Centre-South•An additional 7 mill hectares will be cultivated this year•Satellite monitoring system and supervision of the rainforest will be strengthened•Domestic consumption: Export:

35 bil litres by 2015 15 bil litres by 202050 bil litres by 2020

Future• From 2008-2012 US $33 billion should be

invested. US $23 billion in new mills.• Industrial units controlled by foreign capital

should rise from about 7%-12% by 2012.