Palestra Gastal Portugal

1
MINISTRY OF DEVELOPMENT, INDUSTRY AND FOREIGN
TRADE
Biodiesel - a Mutual Profitable Partnership
between Brazil and Germany
2
BRAZILIAN ETHANOL/SUGAR SECTOR

• PRODUCTION CAPACITY 18 billion liters/year
• PRODUCTION 15 billion liters/year
  (seed/2004/2005)
• EXPORTATION 2.4 billion liters in 2004
• SUGAR CANE PLANTED AREA 5.6 million hectares
• POTENTIAL FOR AGRICULTURAL EXPANSION IN BRAZIL
• 90 million hectares of arable lands Without any
  forest removal
• JOBS 1 million employees(direct)/4 million
  (indirect)
• INTEGRATED PRODUCTION OF SUGAR AND ETHANOL
• Provide production flexibility
• UTILIZATION OF ETHANOL IN VEHICLES IN BRAZIL
• Automobiles, light commercials, motor-cycles and
  aircrafts
• Flexible Fuel light vehicles reached 37 of
  internal market sales in 2005

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BIODIESEL IN BRAZIL

• Creation of job and yield in Brazil sustainable
  employment for families in local agriculture.
• Reduction of diesel imports (US 160 million/year
  for the initial phase with a blend of 2 - B2).
• Provide an environmentally correct fuel.
• Production capacity expected for 2006 430
  million liters/year.
• Market in 2008 (for a 2 mandatory blend) 840
  million liters/year.
• Several enterprises and research institutes are
  developing biodiesel production in Brazil from
  different vegetable oil seeds (castor seed, palm
  nut, sunflower seed, soy bean, cottonseed,
  peanuts, and others.)

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• COMPARISION OF ETHANOL AND BIODIESEL IN BRAZIL
• -

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• OPORTUNITIES IN BIOFUELS FOR BRAZIL
• - Worldwide search for renewable energy sources
• - main options ethanol and biodiesel.
• -Technology for ethanol production could be
  offered from Brazil to other countries.
• - Ethanol and biodiesel reduce CO2 emissions.
• - Global warming contribution
• - CDM Projects - Kyoto Protocol
• - Selling of carbon credits to developed
  countries.
• - Ethanol cooperation proposals in equipment and
  production technology and alternative supply to
  oil U.S.A. Germany Japan China India
  Paraguay Venezuela Cuba, Israel, etc.
• - Biodiesel intention to initiate similar
  agreement discussions.

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BIODIESEL PROGRAM IMPLEMENTATION

• 2004 - 2 (B2) optional blend authorized
• 2008 - Law enforcement, for a 2 blend
  countrywide
• 2013 Law enforcement, for a 2 blend countrywide
• Ethanol demand for biodiesel production
• 10 to 15 of total biodiesel production.
• 300 million liters/year of ethanol for B5 (5)
  blend
• One single ethanol plant could supply - whole
  amount.

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REGIONAL DEMAND
Oil seeds
Demand (thous m3)
Total of
Total area (th. ha)
Employee -
Employees -
REGION
Diesel
Biodiesel - B2
employees
(oil ethanol)
ethanol prod
oil production
1.365
67.645
SOUTHEAST
18.605
371
Soy
1.497
69.142
SOUTH
8.854
178
Soy
650
32.193
712
32.905
17.630
410
18.040
CENTERWEST
5.092
102
Soy
355
Castor oil
251.780
2.340
NORTHEAST
6001
120
510
254.120
33
5.995
NORTH
3.436
69
Palm oil
1.340
7.335
2.913
TOTAL
41.988
840
6.299
375.243
381.542
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BIODIESEL NEEDS OF ARABLE LANDS
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- Make Biodiesel production feasible for a 2
(B2) countrywide utilization - Captive fleets of
buses and trains utilization of B20 -
Thermoelectricity in remote areas utilization of
B100.- Test and authorize countrywide
utilization of 5 in a three year period.
GOALS FOR THE DOMESTIC MARKET IN BRAZIL

• GOALS FOR THE WORLD MARKET
• - Implement trade agreements for exportation of
  Biodiesel
• Partnership supplyng fuel demands
• Stop importations and become a world supplier o
  glycerin

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? High agricultural production costs ? Need
to fulfill internal/external obligations of
emission reduction (Kyoto Protocol and other
compromises) ? New cultivation lands not
available ? Need strategic alternatives for
diesel supply
POSSIBLE IMPORTERS OF BIODIESEL COUNTRIES
WITH CARACHTERISTICS
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BIODIESEL WORLD FIGURES (m3)
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PERSPECTIVES OF GERMANY/BRAZIL BIODIESEL
COOPERATION

• Possible areas of interest
• Utilization of German technology for biodiesel
  plants in building, logistics, utilization of
  glycerin and other by-products, specification,
  engine tests, etc.
• Sale of carbon credits (MDL) obtained through
  the utilization of ethanol or biodiesel in
  Brazil.
• Exportation of ethanol/biodiesel to Germany.
• Proposal of partnerships in biodiesel, ethanol
  and Flex-Fuel Vehicles.

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THANK YOU !!! mario.abad_at_desenvolvimento.gov.br


http//www.biodiesel.gov.br