Ministério de
Minas e Energia
PERSPECTIVES FOR BIOFUELS IN BRAZIL
BRAZIL – ASEAN COUNTRIES MEETING
Marco Antônio Almeida
Secretary of Oil, Natural Gas and Renewable Fuels
June, 18th. 2012
Ministério de
Minas e Energia
The Perspectives for Biofuels in Brazil
 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
Ministério de
Minas e Energia
Fuel Mix - 2011 and Recent Evolution
Hydrated (E100)
Anhydrous Ethanol
Total Ethanol
Gasoline
Diesel
Biodiesel
VNG
* Automotive use only

Highlights:
1.
Biodiesel growth;
2.
Ethanol shortening.
Source: MME (2011)
2010
2011
Var (2011/2010)
16,9%
7,4%
24,3%
23,4%
47,7%
2,5%
2,1%
12,2%
8,4%
20,6%
27,0%
47,7%
2,7%
2,0%
-27,51%
13,00%
-15,15%
15,43%
0,05%
6,65%
-6,22%
Ministério de
Minas e Energia
Ethanol Forecast (PDE 2020)
million m³
Ethanol for Internal Fuel Market
Ethanol for Exports
20.6
Closed
Figures for
2011
2.0
Ministério de
Minas e Energia
Ethanol Use Benefits in Brazil
Efective Economy of 1.6 billion boe or 2 years
of the Brazilian oil production today*
IN THIS PERIOD, DUE TO ETHANOL USAGE, IT WAS AVOIDED
THE EMISSIONS OF 950 MILLIONS OF TONS OF CO2
* Considers Daily Production in Brazil of 2,200,000 Barrels of Oil per day
Ministério de
Minas e Energia
Million m³
Biodiesel Forecast (PDE 2020)
Only the natural growth of B5 will demand
3.8 billion liters in 2020
Total oil and fatty acid
Demand Expected
produced
for B5
Source: MME / PDE 2011-2020/ (Biodiesel demand projection for B5)
Installed Capacity
(2011)
Ministério de
Minas e Energia
Policy 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 fleet
 Tax differentiation regime in federal level.
 Line of credit for ethanol strategic buffer stocks (conceived to improve offseason 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).
Ministério de
Minas e Energia
Recent 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.
Ministério de
Minas e Energia
Biodiesel 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 rawmaterials for biodiesel production (palm oil, jatropha etc.).
Ministério de
Minas e Energia
Social Fuel Certificate Results
Families
US$ / Family per Year
m³
Total
Biodiesel Production
Source: MDA, MME (2011)
Total Income
of the Families
due to Biodiesel
Ministério de
Minas e Energia
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.
Ministério de
Minas e Energia
Bioplastics 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.
Ministério de
Minas e Energia
Land Use in Brazil
Total Area
Others
Arable Land
Native Vegetation
15
2%
Available
Pasture
Agriculture
2009 Data
Sugarcane
Source: ICONE, ESALQ and IBGE. Elaboration: COSAN and UNICA
Ministério de
Minas e Energia
Agricultural Zoning
Agricultural zoning as a guarantee for public and private investments and
a recommendation of suitable areas for production
Sugarcane Expansion with
Agroecological Requirements
Maximum allowed:
65 million ha
or 7,5% of the territory
(green areas)
Agrozoning for Soy, Sunflower,
Castor,
Palm, Cotton Seed etc.
North Region
Focus = arc of
deforestation
Maximum allowed:
32 million ha
or 3,7% of the territory
(brown areas)
Northeast
Region
Focus = coast
areas
Ministério de
Minas e Energia
Dedicated Infrastructure for Ethanol Distribution
GO
JATAÍ
Out/16
2,0 Mm³
ITUMBIARA
0,8 Mm³
QUIRINÓPOLIS
MG
5,2 Mm³
Dec/14
APARECIDA
TABOADO
UBERABA
q
q
Out/14
7,4 Mm³ / ano
2,3 Mm³
MS
Out/13
Out/13
2,5 Mm³
q
q
q
RIBEIRÃO
PRETO
ARAÇATUBA
11,7 Mm³
Mar/13
PRESIDENTE
EPITÁCIO
80 barcaças
4,0 Mm³
Out/14
SP
ANHEMBÍ
9,1 Mm³
6,2 Mm³
PR
Jul/14
Dutos não licenciados
Dutos de exportação
Sistema de dutos existente
Trecho já licenciadoexportação
1800 km of dedicated pipelines
US$ 4.2 billions
16 Terminals
Jul/12
Ago/15
Hidrovia
Dutos já licenciados
PAULÍNIA
REVAP
BARUERI
GUARULHOS
Jul/13
4 Mm³
14,6 Mm³
GUARAREMA
3,6 Mm³
7 Mm³
Out/16
CARAGUATATUBA
RIO DE JANEIRO/
TERMINAL
ILHA D’ ÁGUA
RJ
Ministério de
Minas e Energia
Bioenergy International Cooperation
Map of International Agreements on Bioenergy sign by Brazilian Representatives
77 countries
Nearly 1/3 of the
whole nations
* 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.
Ministério de
Minas e Energia
Feasibility Studies on Bioenergy
 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.
Ministério de
Minas e Energia
Feasibility Studies – Honduras
Agroclimatic Zoning
Climatic and Soil ZoningSoil Zoning
Hydrous Deficiency
Evapotranspiration
Rain Data
Humid Areas
Average Temperature
Soil
Slope Areas
Environmental Zoning
Protected Areas
Areas with Human Activities
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.
Ministério de
Minas e Energia
Feasibility Studies – Guatemala
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.
Ministério de
Minas e Energia
Sustainability – 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.
Ministério de
Minas e Energia
Final 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.
Ministério de
Minas e Energia
THANK YOU!
Marco Antônio Martins Almeida
Secretary of Oil, Natural Gas and Renewable Fuels
e-mail: [email protected]
June, 18th. 2012