biofuels in brazil the ethanol experience paulo c. r. lima, m.sc., ph.d. energy consultant for...
TRANSCRIPT
Biofuels in BrazilThe Ethanol Experience
Paulo C. R. Lima, M.Sc., Ph.D.Energy Consultant for Brazilian Congress
Main biofuels in Brazil
> Ethanol (present and future)
> Biodiesel (future)
> Sugarcane bagasse
> Charcoal
Brazil´s area ~ 850,00 Total area for agriculture 320,00 Cultivated area – all crops 60,40 with sugar cane 5,34 for ethanol 2,66
Source: Ministério da Agricultura, Pecuária e Abastecimento
Brazil´s potentialMillions of hectares
Cultivated area: 5.5 million haIt could be 20 times greater
Fonte: Carvalho L. C. C - 2005
Ethanol in Brazil Proálcool: world´s greatest program Started in 1975 The addition of ethanol increases the octane
number Additive that replaces Methyl Tertiary Butyl Ether
(MTBE) and Ethyl Tertiary Butyl Ether (ETBE) More than 3 million flex-fuel vehicles (ethanol,
gasoline or any mixture of them) Gasoline with 20% a 25% of anhydrous ethanol Ethanol is competitive
91
149
350
303
263
1975 1980 1990 1995 2003
Source: UNICA – União da Indústria Canavieira do Estado de São Paulo
383
440
(1.0
00.0
00 t
)
Sugarcane production and key facts
PROÁLCOOL
Flex-Fuel Vehicles
Ethanol export
2004 2005
Law nº 8.723, 1993 (22%+/- 2% e 1% allowance)
12,5914,37
15,413,87
13,02
10,59 11,5412,62
14,72
2004/2005
1995/1996
1996/1997
1997/1998
1998/1999
1999/2000
2000/2001
2001/2002
2002/2003
2003/2004
Source: UNICA
1.00
0.00
0 m
3
15,28
2006: 17 million cubic meters
Ethanol production
Ethanol market
Brazil: 13,2% of total energy consumption in road transport
sector; 40,4% of total fuel consumption for Otto Cycle vehicles
(it was 56,9% in 1988).
USA: ethanol represents just 2,5% of total fuel consumption of Otto Cycle vehicles.
Source: Nastari, P. M. - 2005
IMPACTS OF ETHANOL PRODUCTION
Social
70.000 farmers
395 distilleries
1million
people
70.000 farmers
395 distilleries
1million
people
Environment
16 million cars powered by gasoline with 25% ethanol
addition
16 million cars powered by gasoline with 25% ethanol
addition
3,0 million cars powered by hydrated
ethanol
3,0 million cars powered by hydrated
ethanol
More than 1 million flex
fuel cars
More than 1 million flex
fuel cars
From 1992 to 2003, the jobs on sugarcane crop has reduced by 33%, according to PNAD (Pesquisa Nacional de Amostras Domiciliares)
SUGARCANEProductivity improvement (Center-South)
Source: Amorim e Lopes - 2005
(ton per hectare-year)
1977
53
2003
80
ETHANOLIncrease of productivity (Center-South)
lite
rs/h
a-ye
ar
4200
5300
6550
4000
4500
5000
5500
6000
6500
7000
1980 1986/1988 2004
Source: UNICA
Source: Goldemberg,J. & Macedo,I., 2005
Ethanol price at distillery
Gasoline price at refinery
Learning curve
Production cost: US$0.18–0.25 per liter Average export price in 2003: US$ 0.23 per liter
New plants Processing capacity: 2.1 million tons of sugarcane per year Production capacity: 430 m3/day Capital cost: US$ 60 million Raw material cost: US$ 0.143 per liter of ethanol Capital cost: US$ 0.017 per liter of ethanol
Ethanol production costs
Source: Nastari, P. M. - 2005
NEW DISTILLERIES(around 50)
New plants
0
2
4
6
8
10
12
Sugarcane Sugar beet Wheat straw Corn Wood
ethanol feedstock
energy output/input ratio
Energy balance of ethanol production
ELECTRICAL ENERGY – Installed Power(sugarcane bagasse)
(MW)
Electricity consumption for sugar and ethanol processing
Power capacity connected to the national grid
Short term potential
Medium term potential
Source: Aneel/Unica
Cogeneration potential Plants can generate 80 kWh/sugarcane ton in excess (low
pressure systems)
Investment can be recovered in 3 to 4 years
Cogeneration can have an important impact on income of ethanol producers (25-28%)
Sugarcane bagasse, stem tips and leaves can provide great amount of energy
Fonte: Nastari, P. M. - 2005
Perspectives for ethanol in developing countries
BIODIESELBIODIESEL
Brazil has Brazil has 90 90 million million hectares hectares available for available for producing oil producing oil cropscrops..
Law nº 11.097 / 2005
- Introduces biodiesel into the Brazilian energy matrix
- 2% has to be added to diesel in 3 years(by January 2008) - 800 million liters
- 5% has to be added in 8 years (by January2013) - 2 billion liters
- Oil and gas royalties can be used to finance biofuels R&D projects
Law 11.116 / 2005
- Special monophase regime for federal taxation (PIS/PASEP and COFINS)
- Biodiesel producers has to be authorized by ANP (National Agency for Oil, Gas and Biofuels)
- Special record at Secretaria da Receita Federal (Ministry of Finances)
Decree nº 5.297
- Defines the value of PIS/PASEP and COFINS
- Creates the “Social Fuel Stamp”
Source: Gomide, R. B. - 2006
Social Fuel Stamp – IN 01 / 2005Ministério do Desenvolvimento Agrário - MDA
Requirement for concession:• Buying of raw material of family farming
• 50% NE • 10% North and CW• 30% SE and South
• Formal contracting
• Technical assistance and training
Resolution nº 3 / 2005Conselho Nacional de Política Energética - CNPE
- Public auctions to anticipate the 2% goal. Raw material from family farming and “Social Fuel Stamp”
Portaria nº 483 / 2005Ministério de Minas e Energia - MME
- Guidelines for public auctions to be executed by Oil, Gas and Biofuel National Agency
Resolution nº 31 / 2005Agência Nacional do Petróleo, Gás Natural e
Biocombustíveis - ANP
Auction Bidding nº 061 / 2005
Auction Bidding nº 007 / 2006
Agência Nacional do Petróleo, Gás Natural e Biocombustíveis - ANP
1º Auction
2º Auction
3º and 4º AuctionsAgência Nacional do Petróleo, Gás Natural e
Biocombustíveis - ANP
- Estimated volume: 850 million liters to fill 2% - Brazil’s diesel consumption is near 40 billion liters
BIODIESEL PLANTS
Source: Gomide, R. B. - 2006
- Brazil has a great potential for biofuel production but a small potential to promote citizenship
- Biofuels legal framework is confusing and inconsistent
- Ethanol and biodiesel are subject to different public policies
- Ethanol can be treated as “social fuel” like biodiesel
- The Brazilian legislation does not define any incentive for cooperativism and small distilleries or production units
- Family farming depends on industrial producers
CONCLUSIONCONCLUSION
Tributos Federais: Decretos nº 5.297/04 e 5.457/05
R$ 0,218 R$ 0,218 R$ 0,151 R$ 0,070 R$ 0,00
R$/litroR$/litroR$/litroR$/litroR$/litroTotal tributos federais
R$ 0,148 =diesel mineral
Reduçã o de 31%
Reduçã o de 68%
Reduçã o de 100% PIS/COFINS
R$ 0,070 InexistenteInexistenteInexistenteInexistenteCIDE
Alíquota Zero
Alíquota Zero
Alíquota Zero
Alíquota Zero
Alí quota ZeroIPI
Regra Geral
Norte, NE e Semi-árido
com mamona ou
palma
Agricultura Familiar
Agricultura Familiar no Norte, NE e
Semi-árido com mamona ou
palma
Diesel de
Petr óleo
BiodieselTributos federais
R$ 0,218 R$ 0,218 R$ 0,151 R$ 0,070 R$ 0,00
R$/litroR$/litroR$/litroR$/litroR$/litroTotal tributos federais
R$ 0,148 =diesel mineral
Reduçã o de 31%
Reduçã o de 68%
Reduçã o de 100% PIS/COFINS
R$ 0,070 InexistenteInexistenteInexistenteInexistenteCIDE
Alíquota Zero
Alíquota Zero
Alíquota Zero
Alíquota Zero
Alí quota ZeroIPI
Regra Geral
Norte, NE e Semi-árido
com mamona ou
palma
Agricultura Familiar
Agricultura Familiar no Norte, NE e
Semi-árido com mamona ou
palma
Diesel de
Petr óleo
BiodieselTributos federais
Matriz Energética Brasileira
Biomassa29.1%
Petróleo eDerivados
39.7%
Gás Natural8.7%
Carvão Mineral6.5%
Hidreletricidade14.5%
Urânio (U 3O2)1.5%
Recursos Renováveis
43.6%
BIODIESELBIODIESEL
Áreas não exploradas Áreas não exploradas de de 90 milhões de ha 90 milhões de ha estão disponíveis estão disponíveis para produção de para produção de grãos no Brasilgrãos no Brasil
Empreendimentos em OperaçãoCapacidade Instalada Total
Tipo N.° deUsinas
(kW)% N.° de
Usinas(kW)
%
Hidro 604 71.549.721 70,13 604 71.549.72170,13Natural 72 9.886.953 9,69GásProcesso 26 925.748 0,91
98 10.812.70110,60
Óleo Diesel 520 3.565.994 3,50Petróleo Óleo
Residual18 1.163.970 1,14
538 4.729.964 4,64
Bagaço deCana
222 2.290.250 2,24
Licor Negro 13 782.617 0,77Madeira 25 212.832 0,21Biogás 2 20.030 0,02
Biomassa
Casca deArroz
2 6.400 0,01
264 3.312.129 3,25
Nuclear 2 2.007.000 1,97 2 2.007.000 1,97CarvãoMineral
CarvãoMineral
7 1.415.000 1,39 7 1.415.000 1,39
Eólica 10 28.550 0,03 10 28.550 0,03Paraguai 5.650.000 2,33Argentina 2.250.000 5,85Venezuela 200.000 0,08
Importação
Uruguai 70.000 0,20
8.170.000 8,01
Total 1.523 102.025.065 100 1.523102.025.065 100
Matriz de Energia Elétrica
CARVÃO MINERAL 2,15 PETRÓLEO 76,84 GÁS NATURAL 16,85 URÂNIO 3,57 HIDRÁULICA 27,59 BIOMASSA 63,40
Produção de Energia Primária 106 tep
CARVÃO MINERAL
PETRÓLEO
GÁS NATURAL
URÂNIO
HIDRÁULICA
BIOMASSA
Miscellaneous thoughts/quotes/notes…addendum by James Page “There is a required trade-off between energy and
food production. With half of the world hungry, this is not a good idea at all.”
The “green revolution” began in the ’70s. It’s taken 30 years to take off.
Q: “What’s the better alternative? Nuclear? With all the risks? Or do we continue to flatten pristine environments of the Amazon?” A: “We need technology to change this and increase
yields and product in traditional areas where markets function better.”
17 Nov 2005 Nastari / Datagro @ NIPE Unicamp
37
Cont’d
Improvements in this technology will lead to 300,000 of Brazil’s poorest losing their jobs by 2014.
“There is no way for Brazil to use renewable energy…costs are way too high.”
“The Amazon is the world’s air conditioning system.”“The free market will lead us to the
end.”
“The world is watching the United States and waiting for a change on their position on the omission of the gases with regard to global warming…
…of course, I’m not a defender of Mr. Bush, but the United States has great technological capability and we are going to need this.”
17 Nov 2005 Nastari / Datagro @ NIPE Unicamp
40
Citation for Addendum
Brazilian Chamber of Deputies. Personal Interviews and Presentation. July 2007.