Designing the Biggest Ethanol Pipeline in the World Challenges faced Actions taken Benefits achieved • Poor logistical infrastructure and uncertainties on execution capability • • • Development of supply centers in remote areas, far from demand centers Developed logistics model to analyze economic and financial scenarios of alternatives to existing infrastructure • Modeled political and execution uncertainties as scenarios to stress test the cases Project defined pipeline volume and route that optimizes economics reducing in 10% to 15% the cost of ethanol distribution in the country • Optimization adds USD 1.0 to USD 1.5 Bln NPV value to the ethanol industry above the base case • • Transportation to country’s main ports for exportation and cabotage Stakeholders sceptical about the economics of the ethanol pipeline • Run sensitivity analysis to support decision-making in comparison with other modes of transportation GO GO 1 2014 Optimal route GO 3 GO 2 MS TRIANGULO MINEIRO R EGION SAO JOSE DO R IO PRETO R EGION MG 1 MG SP 1 SP 2012 RIO DE J ANEIRO CAMPINAS PR RJ 2011 SAO PAULO RJ PORT 2015 SP PORT www.visagio.com | Tel: +44 (0)20 3402 2174 LONDON UK MOSCOW RUSSIA NAIROBI KENYA PERTH AUSTRALIA RIO DE JANEIRO BRAZIL