Biofuels in Brazil: a prospective option against deforestation, income concentration and regional di

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Biofuels in Brazil a prospective option against
deforestation, income concentration and regional
disparities.
Coordinator Ademar Ribeiro Romeiro Researchers
Márcio Edgar Schuler Bruna Elisa
Baroni
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Regional Disparities
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Urbanization Degree ()
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Regional Disparities in Brazil ()
Source IBGE database.
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General data crop options land use
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Land use in Brazilmillion ha
Source CONAB and IBGE database.
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Crop options Average land productivity
in Brazil (kg / ha)
600
1.000
castor oil
1.300
sunflower
palm oil
soy
4.500
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Total and regional mineral diesel
demand.Regional demand of B2. Scenario for
local crops and area.
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Total Agricultural Area. Agricultural Area
Required to B100. Total Land Area of Family
Agriculture and Settlement
Source IBGE Census 1995/96.
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Prospective Scenery for B100. Species - Area -
Costs - Price
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North and Northeast Region
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POTENTIAL AREA FOR CASTOR OIL CAATINGA AREA 71
million ha
YELLOW AREA CAATINGA CASTOR OIL POTENTIAL
PRODUCER
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PALM OIL POTENTIAL AREAS
area within the limits of the deforestation
arc 20,000,000 ha
Source MAPA.
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Deforestation Areas Potential Reforestation of
Biofuels species
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Potential Palm Area and Deforestation Arc
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Northeast and North Potential for B100

• family agriculture area in both regions
• Total Caatinga area 71,000,000 ha - Northeast
• Available area within the limits of the
  deforestation arc 20,000,000 ha North
• (Whereas total demand of mineral diesel is
  41,988,000 liters)

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Soy Crop Area - 23 million ha
Source MAPA.
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THE GOVERNMENT'S SCENERY

• INTERMINISTERIAL BIODIESEL GROUP

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The government's scenery Interministerial
Biodiesel Group

• Premises
• Productivity of seeds species by Embrapa Palm
  oil 4,500 kg/ha Castor oil 1,000 kg/ha Soy
  600 kg/ha Sunflower oil 1,200 kg/ha
• Consumption of agricultural fleet correspond to
  15 of the diesel oil demand in the country
  30,000,000 ton (2002)
• 30 of the agricultural fleet run with B100
• 95 remaining of the diesel consumption run with
  B5

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The government's scenery Interministerial
Biodiesel Group

• Process efficiency 80
• Total Need 2,782,500 ton/year
• Produced from
• North (oil palm) - 100 family agriculture
• Northeast (castor oil plant) - 100 family
  agriculture
• Southeast (sunflower or peanut oil) 30 of
  family agriculture in Minas Gerais State
• Center-West (soy oil) 5 of family agriculture
• South (soy oil) 51 of family agriculture

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Family Farm Income and Job Positions
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Job Creation and Investiment with Oil Crop
Options Compared to Soy

• Involvement of 6 the total (269,691 jobs) of
  agriculture family at the cost of R 4,906,00 by
  job position.
• Compared to soy there would be 46,375 jobs at
  the cost of R 80,000,00 by job position.

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The Social Fuel Stamp

• Granted to biodiesel producers who
• Purchase raw material from family agriculture to
  a minimum percentage defined according to each
  area (exemption is proportional to the purchase
  amount)
• Make contracts negotiated with family producers
• Provide family farmers with technical training
• Social Fuel Stamp benefits
• Exemption of Federal Taxes according to purchase
  amount.
• Low rate loans
• Overseas Trade facilities.

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Biofuels cultivated area, income and investiment
per Regions
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Financing Programs and Public Initiatives
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Financing lines

National Economical and Social Development Bank -
BNDES

• Loan amount
• Up to 90 for projects with Social Fuel Stamp
• Up to 80 for other projects
• Interest rate TJLP (Long Term Interest Rate)
• TJLP1 for micro, small and medium sized
  companies with Social Fuel Stamp
• TJLP2 for micro, small and medium sized
  companies without Social Fuel Stamp
• TJLP1 for enterprises with Social Fuel Stamp
• TJLP3 for enterprises without Social Fuel Stamp
  (other segments 1 to 4,5)
• FINAME loan
• for machines and equipments acquisition (vehicles
  for passengers transport and cargo, tractors and
  crop machines, and energy generators) ratified to
  use at least B20, the amortization period
  increases in 25)
• Loan realty warranties reduction from 130 to
  100 of the financed value

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Oil Crops Financing ProgramsBNDES
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Scale and Cost Options
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Biodiesel Plants Scale and Investment
Source Dedini Industry, 2005.
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Options to biodiesel plants by size and location
in Brazil
Source Dedini Industry, 2005.
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Compared Emissions
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Emissions of different biodiesel percentage to
mineral diesel
Source EPA 2002
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Biodiesel emissions from soy oil compared to
mineral diesel ()
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Main sourcesInterministerial Group Biodiesel
EMBRAPAMAPAIBGE INPE BNDES ANP
MMEEPACONAB