mapping report part 6 renewable energy from...

Service Contract for European Union External Actions

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Technical Assistance to the

Low Carbon Business Action in Brazil

Id-N°: EuropeAid/136478/DH/SER/BR

Brazil

Mapping Report

Part 6 – Renewable Energy from Biomass

23rd September 2016

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Technical Assistance to the Low Carbon Business Action in Brazil

Service Contract for European Union External Actions

EuropeAid/136478/CH/SER/BR

Mapping Report

Part 6 – Renewable Energy from Biomass

23rd September 2016

Author: Aurea M.B. Nardelli (short-term expert)

The contents of this document are the sole responsibility of the autor and should in no way be taken to reflect

the views of the European Union

Mapping Report – Part 6 – Renewable Energy from Biomass

Low-carbon Business Action in Brazil (Project funded by the European Union) I

T a b l e o f C o n t e n t s

List of Figures .......................................................................................................................................... I

Abbreviations.......................................................................................................................................... II

1 Executive Summary .......................................................................................................................... 1

2 Biomass Technology Options ......................................................................................................... 2

2.1 Bio-Electricity and Bio-heating ............................................................................................. 2

2.2 Liquid Biofuels ...................................................................................................................... 7

3 Biomass Sector in Brazil: context, opportunities and gaps ....................................................... 11

3.1 Context of Bio-Electricity and Bio-heating ......................................................................... 12

3.2 Context of Liquid Biofuels .................................................................................................. 15

4 Biomass for Energy in Europe ....................................................................................................... 20

5 List of contacts and other potential partners for LCBA .............................................................. 26

6 Summary of the sub-sectors and potential demands and opportunities: ................................ 27

7 References ....................................................................................................................................... 38

Annex 1 .................................................................................................................................................. 39

Annex 2 .................................................................................................................................................. 39

L i s t o f F i g u r e s

Figure 1: Type of feedstock and biomass main conversion processes (Source: http://www.eubia.org/index.php/about-biomass/conversion-routes) .............................. 2

Figure 2: Wood pellets used for heating (Source: http://www.highlandheatandpower.co.uk) ................. 4

Figure 3: Wood briquettes with uniform size and shape (Source: http://www.baltwood.eu/en/products/briquettes/pini-kay-briquettes.html) ...................... 4

Figure 4: Gasification of lignocellulosic materials and final products (Source: EBTP - European Biofuels Technology Platform: Strategic Research Agenda, 2010) ............................... 7

Figure 5: Conventional and second generation ethanol production processes (Source: EBTP - European Biofuels Technology Platform: Strategic Research Agenda, 2010) ............... 9

Figure 6: Oil and fata based value chains for biofuels (Source: EBTP - European Biofuels Technology Platform: Strategic Research Agenda, 2010) ........................................... 10

Figure 7: Total energy generation in Brazil (including fossil and renewable) in 2014 and 2015 (Source: MME - Análise de Conjuntura dos Biocombustíveis, 2016) .......................... 12

Figure 8: Brazilian ethanol production from 2000 to 2015, in billion litres (Source: MME - Análise de Conjuntura dos Biocombustíveis, 2016) ..................................................... 16

Figure 9: EU production of biodiesel from the period 1998 - 2013 (Source: European Biodiesel Board Statistics) ............................................................................................................ 22

Figure 10: EU ethanol installed production capacity in 2014, in million litres (Source: European Renewable Ethanol Statistics) ...................................................................................... 22

Figure 11: Production of wood pellet in Europe in 2014 and the top 5 producer's countries (extracted from AEBIOM, 2015) ................................................................................... 24


Low-carbon Business Action in Brazil (Project funded by the European Union) II

A b b r e v i a t i o n s

ABETRE Associação Brasileira de Empresas de Tratamento de Resíduos

ABIB Associação Brasileira das Indústrias de Biomassa e Energia Renovável

ANEEL Agência Nacional de Energia Elétrica

ANP Agencia Nacional do Petróleo, Gás Natural e Biocombustíveis

BEN Balanço Energético Nacional

BIG Banco de Informações de Geração

COGEN Associação da Industria de Cogeração de Energia

CONAB Companhia Nacional de Abastecimento

CTC Centro de tecnologia canavieira

EU European Union

EU RED European Renewable Energy Directive

FIEP Federação das Indústrias do Estado do Paraná

GHG Greenhouse gas

IPT Instituto de Pesquisas Tecnológicas

ITAKA Initiative Towards Sustainable Kerosene for Aviation

LCBA Low Carbon Business Action in Brazil

MAPA Ministério da Agricultura, Pecuária e Abastecimento

MME Ministério de Minas e Energia

Mtoe Megatonne of oil equivalent

SENAI Serviço Nacional de Aprendizagem Industrial

SME Small and medium enterprise

UBRABIO União Brasileira de Biodiesel e Bioquerosene

UNICA União da Indústria de Cana-de-açúcar


Low-carbon Business Action in Brazil (Project funded by the European Union) - 1 -

1 E x e c u t i v e S u m m a r y

This Mapping Report presents the results of a study performed between May and June 2016 to iden-tify the main low carbon technologies, services and processes in the Brazilian “Renewable Energy from Biomass” sector. As part of the study, the technological gaps and innovation needs were ana-lysed and potential business opportunities and barriers for European small and medium-sized enter-prises (SMEs) interested in the Brazilian market were identified. The final objective of this report is to provide a comprehensive study on “Renewable Energy from Biomass” sector in support of the organisation of a Renewable Energy Matchmaking event between European and Brazilian compa-nies under the framework of the “Low Carbon Business Action Brazil” - LCBA, an initiative fund-ed by the European Union to contribute to sustainable development and greening of Brazilian indus-tries.

The results of this mapping study indicate that:

Brazil has large experience and is well positioned in the sub-sector of liquid biofuels for transport (ethanol and biodiesel), but still has demand for technology and innovation in the areas of advanced biofuels, biorefineries and biojetfuel. Specific gaps and opportunities for European SMEs in these areas were identified;

The sub-sectors of solid biomass have great potential in Brazil, both for the domestic market and for exportation. However, new projects are facing technological barriers to produce the quality required by international markets and to add value to their products. In addition, lack of infrastructure and logistics are factors that have a negative impact on operational and economic feasibility of solid biomass projects;

Waste materials are still underexplored as source of biomass for energy, despite their great potential (note that biogas and waste management are not part of the present mapping). Be-sides the factors mentioned above, project developers face challenges related to biomass quality, appropriate technology and integrated project design (Smart grids);

The sectors of biomass for cogeneration and bioelectricity are also well positioned in Brazil. The sugar cane industry is leader in this segment, using sugar cane bagasse (a co-product of sugar and ethanol production) for energy generation. The main barrier for new projects is reported as being the market regulation, and consequently, the prices paid to energy pro-ducers if compared with the investment needs. However, there are opportunities considering small and micro scale projects using local available biomass.

Finally, an important and controversial discussion raised by key stakeholders was about “Bi-oenergy x Low-carbon-technologies”. Most of the climate change policies or initiatives pro-moting bioenergy are based on the assumption that biomass combustion is carbon-neutral, and that bioenergy is therefore low-carbon. However, bioenergy is not inherently low-carbon. Additional information should be considered throughout the supply chain from the biomass production to energy generation/distribution to ensure that feedstocks and technological op-tions are actually contributing to a low carbon economy. For this discussion it is important to have methodologies and approaches which consider emission factors for fossil fuels taking into account the whole supply chain (exploration, processing, transportation), not only their combustion emissions.



2 B i o m a s s T e c h n o l o g y O p t i o n s

Biomass is a broad definition and includes a wide range of materials with varying compositions. The main biomass components are: carbohydrates, lignin, protein and lipids.

Biomass conversion technologies can be separated into four basic categories: (1) direct combustion, (2) thermo-chemical conversion processes (pyrolysis, gasification), (3) bio-chemical processes (an-aerobic digestion, fermentation) and (4) physicochemical (the route to biodiesel). The obtained de-rivatives depend on both the raw material used (whose energy potential varies type to type) and processing technology for obtaining energy.

Due to the many different feedstocks used for different biofuels, different processing technologies are needed. The technologies should be evaluated and selected considering their specific value chain and context (feedstock availability, targeted end products, industrial synergies etc.).

The Figure 1 shows the most important conversion processes applicable for different type of feedstocks:

Figure 1: Type of feedstock and biomass main conversion processes (Source: http://www.eubia.org/index.php/about-biomass/conversion-routes)

The main processes are described below, considering the biomass final use.

2 . 1 B i o - E l e c t r i c i t y a n d B i o - h e a t i n g

Direct combustion:

Lignocellulosic materials, most plant-based materials, can be used for direct combustion, which is the best-established and most commonly used technology to convert biomass to heat. Wood re-mains the largest biomass type used for direct combustion.

During combustion, biomass fuel is burnt in excess air to produce heat. The combustion efficiency depends primarily on good contact between the oxygen in the air and the biomass fuel. Biomass combustion systems can be very efficient at producing hot gases, hot air, hot water or steam, typical-ly recovering 65-90% of the energy contained in the fuel. Lower efficiencies are generally associated with fuels with higher moisture content. The main products of efficient biomass combustion are car-bon dioxide and water vapour, however tars, smoke and alkaline ash particles are also outputs. The



biomass combustion systems should be designed to cope with a diversity of biomass resources and combustion requirements, to improve overall performance as well to minimize emissions.

Some examples of devices used for direct combustion of solid biomass are domestic or industrial stoves, furnaces, boilers for steam generation in industry or in power plants.

Some types of biomass contain significant amounts of chlorine, sulphur and potassium. The salts are quite volatile and may lead to heavy deposition on heat transfer surfaces, resulting in reduced heat transfer and increasing corrosion rates, factors that may interfere with operation of the devices. The nature and severity of the operational problems depends on the selection of combustion tech-nique, and of course, on the type of biomass used.

In the case of bioelectricity generated from biomass, it is produced by direct combustion using con-ventional boilers. These boilers can burn lignocellulosic materials (e.g. wood, waste ligno-products from the agriculture and wood-processing industries) that, when burned, produce steam, which spins a turbine. The spinning turbine then activates a generator that produces electricity.

Pelletizing

The cost to harvest, handle, transport and store low-density agricultural residue and other lignocellulosic materials may result in a competitive disadvantage to biomass when compared to fossil fuels.

Fortunately, biomass can be condensed to produce a uniform, clean, easy handling, storable and competitive fuel product. One of the methods for this is called “pelletizing”, a process of compressing or molding a material into the shape of a cylindrical pill or pastille. Wood chips, shavings and saw-dust are the most common biomass pelletized for fuel.

The first stage of pelletizing is biomass cleaning to remove contaminants. The clean biomass is then ground in a hammer mill or chipped to a uniform size. If the biomass is high in moisture, it must be dried to approximately 10 percent moisture content. The lignin content in wood is generally enough to bind pellets, but other forms of biomass require special binders such as starch, sugars, paraffin oils, or lignin, which increase the pellet density and durability. Before pelletizing, the mixture must be conditioned using water of varying temperatures or steam. After this stage, the material is fed to a pellet mill, where rollers extrude the mix through a perforated metal plate that condenses the product into pellet form. The hot pellets must then be cooled and dried before its storage or packaging.

Pellets can be used through direct combustion for heating or electricity (e.g. homes, biomass power plants, co-combustion in coal-fired power plants, among other applications). Dense cubes pellets have the capacity to move by flow, that characterizes fluids and loose particulate solids, similar to those of cereal grains. The regular geometry and small size of pellets (Figure 2) allow automatic feeding of combustion system with very fine calibration. High density of pellets allows compact stor-age and rational transport over long distance. Pellets also can be produced with a low moisture con-tent that permits them to be burned with very high efficiency.



Figure 2: Wood pellets used for heating (Source: http://www.highlandheatandpower.co.uk)

Briquetting

Similarly, to pellets, briquettes are easier to store and use for cooking than wood or charcoal, be-cause they are uniform in size and composition (Figure 3). They are cleaner to handle than charcoal and produce less local air pollution.

Figure 3: Wood briquettes with uniform size and shape (Source: http://www.baltwood.eu/en/products/briquettes/pini-kay-briquettes.html)

There are two approaches to briquetting, both of which require the loose biomass to be ground into a coarse powder like sawdust: High-pressure briquetting, which uses a power-driven press to raise the pressure of dry, powdered biomass to about 1.500 bar. This compression heats the biomass to about 120°C, which melts the lignin in the woody material. The press forces the hot material through a die at a controlled rate. As the pressure decreases, the lignin cools and re-solidifies, binding the biomass powder into uniform and solid briquettes. Low-pressure briquetting can be used for materi-als with a low amount of lignin. The powdered material is mixed into a paste with a binder such as starch or clay, and water. A briquetting press is used to push the paste into a mould or extruder. The briquettes produced in this way are dried so that the binder sets and holds the biomass powder to-gether.

Fuel briquettes can be used as an alternative to firewood, wood pellets and charcoal. The energy produced when the briquettes are combusted is comparable to traditional fuels. The briquettes can



be burned in unmodified wood and wood pellet stoves, fireplaces, patio heaters and charcoal grills, and provide a low-cost method for converting organic wastes into energy.

Carbonization

Pyrolysis is an irreversible decomposition of organic material at elevated temperatures and in ab-sence of oxygen. It is a thermochemical process, i.e., involves changes of chemical composition and physical phase of a material. Extreme pyrolysis, which leaves mostly carbon as the residue, is called “carbonization”.

Charcoal is the solid residue remaining when wood is "carbonised" under controlled conditions in a closed space such as a charcoal kiln. The pyrolysis (in this case, the thermal decomposition of the wood cellulose and lignin) produces charcoal which consists mainly of carbon, together with a small amount of ash, combustible gases, tars, a number of chemicals mainly acetic acid and methanol - and a large amount of water, which is given off as vapour.

The carbonisation does not start until the wood is raised to a temperature of about 300° Celsius and when pyrolysis is completed the charcoal, having arrived at a temperature of about 500° Celsius. In the traditional charcoal kiln, part of the wood is burned to dry the wood and raise the temperature until that pyrolysis starts and continues to completion by itself. Advanced technological methods of charcoal production do not allow any air to be admitted, resulting in a higher yield, since no extra wood is burned and control of quality is facilitated. All carbonising systems give higher efficiency when fed with dry wood

1 .

Wood is the most widely available material for charcoal production, and many agricultural residues can also produce charcoal by pyrolysis. However, such charcoal from agriculture residues is pro-duced as a fine powder that usually have to be briquetted at extra cost before to be applied for most of charcoal uses.

Unlike what happened in the industrialized countries, in Brazil, the industrial use of charcoal is still widely practiced by iron and steel industry. As per the BEN – Balanço Energético Nacional (Brazilian Energy Balance, 2015), the country produced 24.773.000t of charcoal in 2014. The pig iron industry is responsible for about 85% of the charcoal consumption in Brazil. The country is the absolute glob-al leader in steel production from charcoal as a reducing agent of iron ore. According to the Instituto Aço Brasil

2, while countries that have expressive steel production use coke, obtained from coal, to

reduce iron ore, approximately 10% of the steel produced in Brazil is obtained from the integrated route from charcoal.

Cogeneration

Biomass fuels are typically used most efficiently and effectively when generating both power and heat through a Combined Heat and Power (or Cogeneration) system.

Cogeneration is the simultaneous production and sequential manner in two or more forms of energy from a single fuel. The most common process is the production of electricity and thermal energy (heat or cold) from the use of natural gas and / or biomass, among others. Cogeneration is applied in large scale in the world, and configures the most rational technology for the use of fuels. Examples of cogeneration systems can be found in sugar and ethanol industries (using sugar cane bagasse) and pulp and paper mills (using wood and/or black liquor). These industries, besides demanding electrical and thermal power, have fuel waste that integrates to the cogeneration process.

A biomass-fuelled combined heat and power installation is an integrated power system comprised of the following major components: Biomass receiving and feedstock preparation; Energy conversion (conversion of the biomass into steam for direct combustion systems); and power and heat produc-tion (conversion of the steam into electric power and process steam or hot water).

1 http://www.fao.org/docrep/x5328e/x5328e02.htm, accessed on 21/06/2016. 2 http://www.acobrasil.org.br/site/portugues/sustentabilidade/relatorio.asp, accessed on 22/08/2016

http://www.fao.org/docrep/x5328e/x5328e02.htm

http://www.acobrasil.org.br/site/portugues/sustentabilidade/relatorio.asp



Gasification

Gasification is a partial oxidation process whereby a carbon source, such as solid biomass, is treat-ed/processed at temperatures above 700°C with limited oxygen and produces synthesis gas (carbon monoxide (CO) and hydrogen (H2), plus carbon dioxide (CO2) and possibly hydrocarbon molecules such as methane (CH4), which can be used for heating or electricity generation or can be upgraded to liquid biofuels.

After the size reduction, the material is moved into the gasifier where it is transformed into gas (mainly composed of hydrogen and carbon monoxide) and solid by-products (char or ashes and impurities). Gasification takes place under shortage of oxygen. The product gas has a positive heat-ing value, and, if char is produced, it has a positive heating value.

The gasification processes are distinguished according to the gasification agent used and the type of heat supply. Typical gasification agents are oxygen, water, and air. Based on how heat is supplied, gasification can be “autothermal” process, when the heat is provided through partial combustion of the processed material in the gasification stage; or “allothermal”, in case the heat is provided exter-nally via heat exchangers or heat transferring medium.

The choice of the gasification agent is based on the desired composition of the product gas. The gasifier types can be classified according to how the fuel is brought into contact with the gasification agent.

The amount and kind of impurities depend on the type of biomass used as fuel. Impurities can cause corrosion, erosion, deposits and poisoning of catalysts. Dust, ashes, bed material and alkali com-pounds are removed through cyclones and filter units, the tar through cooling and washing the gas using special solvents or by condensation in a wet electro filter.

Gasification technology can be used for many purposes: Heating water in central heating, district heating or process heating applications; steam for electricity generation or motive force; as part of systems producing electricity or motive force; transport using an internal combustion engine.

The syngas (synthesis gas) resulted from the biomass gasification can be converted into liquid hy-drocarbons through a process called “Fischer–Tropsch” (FT). The clean syngas leaving the gasifica-tion process is sent onto the FT synthesis island, where the clean shifted syngas is converted into primary products of wax, hydrocarbon condensate, tail gas, and reaction water. The wax is sent to an upgrading unit for hydrocracking in the presence of hydrogen, where it is chemically split into smaller molecular weight hydrocarbon liquids. A hydrogen recovery unit is used to extract the re-quired quantity of hydrogen from the tail gas, or alternatively from the feed syngas stream. The reac-tion products are fractionated into the final hydrocarbons and bio-oil. Figure 4 shows the gasification process and its final products.



Figure 4: Gasification of lignocellulosic materials and final products (Source: EBTP - European Biofuels Technology Platform: Strategic Research Agenda, 2010)

2 . 2 L i q u i d B i o f u e l s

The called “conventional biofuels” include ethanol from sugar and starch and biodiesel from vegeta-ble oils or animal fats, which are produced from traditional crop options (including food & feed crops) using simple and commercially established processing technologies.

Descriptions of each process to produce liquid biofuels – ethanol and biodiesel - will follow below. The flow to obtain bio-oleo and other synthetic hydrocarbons was described under the “Gasification” sector in this report.

“First Generation Ethanol”

The principle transportation fuel used as a petroleum substitute is ethanol. It is mainly produced by the sugar fermentation process, although it can also be produced by the chemical process of react-ing ethylene with steam.

The called “First Generation” or “Conventional” Ethanol (also known as ethyl alcohol) is a clear, col-ourless liquid, made of the same chemical compound whether it is produced from sugar and starch-based feedstocks such as sugar cane (as it primarily is in Brazil) or corn grain (as it primarily is in the United States). In the conventional process, only the sugar and starch portions can be converted into ethanol. Ethanol can be used directly or by changes in internal combustion engines with spark igni-tion (Otto Cycle), other forms of power generation or petrochemical industry. Most of Brazilian sugar mills are able to direct the sugar cane to either row sugar or ethanol production.

The conventional route to obtain ethanol is Hydrolysis – Fermentation – Distillation, and can also include Dehydration in the final stage. The feedstock (e.g. Sugar cane) is crushed, resulting in sug-ar cane juice and a solid fibrous residue, the bagasse. After clarification, the juice is concentrated by evaporation until sucrose crystallization. The sucrose crystals are collected by centrifugation, gener-



ating a sucrose saturated viscous phase, called cane molasses. The sugar cane must (preparing by mixing sugar cane juice and molasses) is added to a yeast suspension for the Fermentation stage. In case of starch materials, hydrolysis stage is required before the fermentation. The product of fer-mentation goes to Distillation step, where the water is removed from the ethanol. The purity is limited to approximately 95% at this stage. This further distillation occurs during the dehydration process, when extra water is removed from the solution. After distilling, a liquid output - “vinasse” - is pro-duced at the ratio of 10-15 liters per liter of produced ethanol and is used as irrigation water and fertilizer on sugar cane fields.

“Second Generation ethanol” or “Cellulosic ethanol”

The term “Cellulosic ethanol” refers to biofuel produced from lignocellulosic biomass. This covers a range of plant biomass containing cellulose and hemicellulose with varying amounts of lignin, chain length, and degrees of polymerization. This includes wood from forestry, lignocellulosic energy crops, such as energy grasses, and crop residues (bagasse, straw, husks etc.) Some cellulosic ma-terials are relatively easy to breakdown into substrates, however, for more complex cellulosic mate-rials containing greater amounts of lignin (e.g. hardwood) the production route to ethanol requires pre-treatment and may be more challenging and costly.

Lignocellulosic materials must first be broken down into their component sugars for subsequent fer-mentation to ethanol. This complex process involves hydrolysis and gasification technologies. While cellulosic ethanol can be manufactured from abundant and diverse raw materials, its production re-quires a greater amount of processing than the conventional ethanol. The initial investment required (capital) and enzyme costs are the main factors that should be considered for costs reduction.

Due to higher production costs, if compared with conventional routes, the second-generation ethanol is not competitive yet, especially in regions where first generation sugar cane ethanol is well estab-lished. Some incentives have been provided by governments and specific markets, as in US, to in-crease the research and operational implementation of cellulosic ethanol plants.

Figure 5 shows the main steps for production of first and second-generation ethanol.



Figure 5: Conventional and second generation ethanol production processes (Source: EBTP - European Biofuels Technology Platform: Strategic Research Agenda, 2010)

Biodiesel

Biodiesel is a non-toxic liquid and biodegradable fuel produced from vegetable oils and animal fats. Like petroleum diesel, biodiesel is used to fuel compression-ignition (diesel) engines. One of the advantages of biodiesel combustion, besides potential lower GHG emissions, is the production of less air pollutants when burnt, if compared with petroleum-based diesel. Biodiesel can be used in pure form or blended with diesel in any proportions. Biodiesel blends can also be used as heating oil.

Among the feedstocks used for global biodiesel production are: palm oil, soybean oil, rape seed oil, sunflower oil, waste animal fats and used cooking oil.

Transesterification comprises the reaction of vegetable oils with an active intermediate product ob-tained by reaction of methanol or ethanol and a base (sodium hydroxide or potassium hydroxide). The products of such reaction are glycerine and biodiesel.

Hydrotreating is an alternative process to esterification to produce diesel from biomass. Hydrotreated Vegetable Oils (HVO) are commonly referred to as “renewable diesel”. Hydrotreating (hydroprocessing) can use a wide range of waste fats and oils as feedstocks.

The biodiesel production main routes – Transesterification and Hydrotreatment - are described in Figure 6.



Figure 6: Oil and fata based value chains for biofuels (Source: EBTP - European Biofuels Technology Platform: Strategic Research Agenda, 2010)

Other liquid and Advanced Biofuels

“Advanced biofuels” are defined either by a wider range of feedstocks (including cellulosic feedstocks from residual/ waste biomass, dedicated energy crops as well as new concepts (e.g. algae etc.) or by enhanced fuel properties of the end product. A short explanation is provided in this section about “Algal biofuels” and other alternative routes not described in the previous sections.

Algae have the potential to produce considerably greater amounts of biomass and lipids per cultivat-ed area than terrestrial biomass, and can be cultivated on shallow lagoons or raceway ponds on marginal lands.

Algal biofuel is an alternative to liquid fossil fuels. There are European and North American compa-nies and government agencies funding efforts to reduce capital and operating costs and make algae fuel production commercially viable. Initial experiences show attractive potential for future algae-based biofuels, but cost reduction and scale-up remain critical challenges. As for conventional starch and vegetable oil based biofuels, the competitiveness of algae-based biofuels will strongly depend on the commercialization of algae co-products.

Biorefinery concept

Biorefinery is a facility that integrates biomass conversion process and equipment to produce fuels, power, and biomaterials or bio-based products from biomass. In a biorefinery, almost all the types of biomass feedstocks can be converted to different classes of biofuels and biochemicals through joint-ly applied conversion technologies.

The biorefinery concept can be understood as analogous to the petroleum refineries: a plant able to produce multiple fuels and products. Biorefineries can help in utilizing the optimum energy potential of organic wastes and may resolve the problems of waste management and GHGs emissions.



It is a new concept for biomass process, not only for fuels but also for new bio-based products. The current stage of development of biorefinery technologies is not competitive if compared with petrole-um-based process or with conventional biofuels production. Efforts have been done for reduction of capital needs and operational costs, for achieving more efficiency and for the development of valua-ble co-products.

Biojetfuel

Aviation transport is being included in the discussions about low carbon technologies due to its high carbon footprint and strong commitment of the sector with reduction of its GHG emissions. This new potential biofuel consumer imposes new challenges to biomass for the energy sector. The Interna-tional Air Transport Association (IATA) supports research, development and deployment of alterna-tive fuels for aviation.

Aircraft industry, engine manufacturers, oil companies and airlines have carried out many discus-sions and studies. Initial biojetfuel technological routes were approved for commercial use in July 2011. Since then, some airlines have performed experimental and commercial flights using biojetfuels. In Brazil, GOL Airlines is leading the biojetfuel discussions.

“Drop-in" biofuels can be completely interchangeable with conventional fuels. Deriving "drop-in" jet fuel from bio-based sources is approved via three routes. The first one involves using oil, which is extracted from plant sources, or animal or waste oils, by cracking and hydroprocessing (Hydrogen-ated Esters and Fatty Acids - HEFA). The second route involves processing solid biomass using pyrolysis to produce pyrolysis oil or gasification to produce a syngas, which is then processed into FT SPK (Fischer–Tropsch Synthetic Paraffinic Kerosene). The third is the Renewable Synthesized IsoParaffinic (SIP) fuel (renewable farnesane hydrocarbon).

3 B i o m a s s S e c t o r i n B r a z i l : c o n t e x t , o p p o r -t u n i t i e s a n d g a p s

Initial data for the characterization of the biomass sector in Brazil was obtained from the main re-ports and bulletins published by the Brazilian industry and by government agencies such as: UBRABIO (União Brasileira de Biodiesel e Bioquerosene) and UNICA (União da Indústria de Cana-de-açúcar) publications, ANEEL (Agência Nacional de Energia Elétrica) and ANP (Agência Nacional do Petróleo, Gás Natural e Biocombustíveis) Bulletins, BEN (Balanço Energético Nacional) reports, among others. For validation and completion of the study, key stakeholders were identified, including research institutions, associations, experts and companies. About 40 organizations / individuals were contacted and interviewed by email, phone or face-to-face meetings.

During the study, the expert also participated in the event “1st International Biomass Conference”

and “ExpoBiomassa”, promoted by FIEP and SENAI in Curitiba, Paraná, where additional infor-mation was obtained, as well as new contacts for the LCBA project.

The interviews with stakeholders were summarized and the lists of contact details of the Brazilian and European potential partners/customers/suppliers were prepared. In total, more than 100 con-tacts were listed. In parallel, most of them were contacted directly by the expert to be informed about the Biomass Mission and invited to sign the “Declaration of Interest” to support the LCBA in Brazil.

There are interfaces between “Renewable Energy from Biomass” and other sectors being mapped by LCBA. In this biomass mapping, the scope did not cover: the production of biomass by Agricul-ture and Forestry Activities (which will be subject of subsequent LCBA Missions, specifically on low carbon agriculture); the management of solid waste (already covered by a LCBA Mission in 2016; the biogas sector, also covered by a separate LCBA Mission in 2016).

Renewable Energy sources represent a very important source in the Brazilian energy matrix, with hydropower being dominant in the country's electricity generation/consumption and modern biomass (from sugarcane) playing an increasing role. According to the Resenha Energética Brasileira (2016), in 2015 the domestic supply of energy in Brazil was 299.2 million tons of oil equivalent and about



41% of this total corresponds to renewable energy - such as wind, biofuels (ethanol and biodiesel), biomass and hydroelectric plants. As per the same reference, the indicator is higher than the global average, where renewable energy represents less than 15% of the total.

Considering only the renewable energy in Brazil, biomass (mainly sugar cane, charcoal and fire-wood) represented around 60% of the supply (Resenha Energética Brasileira, 2016). The use of sugarcane bagasse to produce heat in the production of sugar, the bleach in the pulp industry, char-coal in the production of pig iron and wood in the ceramics industry are the main drivers of high Bra-zilian indicator.

Figure 7: Total energy generation in Brazil (including fossil and renewable) in 2014 and 2015 (Source: MME - Análise de Conjuntura dos Biocombustíveis, 2016)

Considering the biomass for energy technologies and products discussed in Chapter 2 of the pre-sent report, this section provides additional information for the Brazilian context, highlighting poten-tial gaps and opportunities. The scope of opportunities identified was limited to short-term projects and to services, technologies or products that can be provided by European SMEs.

3 . 1 C o n t e x t o f B i o - E l e c t r i c i t y a n d B i o - h e a t i n g

Brazil is one of the world’s largest producers of agricultural commodities, as sugar cane, orange juice, cellulose, soybean, coffee bean, beef and others. All the primary products of these crops and industrial process produce also large amounts of residues. It is noted that a large part of these resi-dues are currently not used, but they offer the potential for being transformed into energy as well as biomaterials.

Energy policy in Brazil is the responsibility of the Ministério de Minas e Energia (MME, Ministry of Energy and Mines). ANEEL is the regulating agency for the electricity market and is also responsible for publishing and managing energy auctions and operating tariff-based schemes across the coun-try.

Some policy mechanisms to incentivize renewable energy generation are: Proinfa (Federal Program to Incentive Alternative Sources for Electricity) and a system of contract auctions (led by ANEEL, to provide efficient market for renewable power).

Proinfa was established by the Federal Law No. 10.438/2002, with the objective to increase the share of renewable alternative energy sources (small hydroelectric plants, wind power plants and thermal power projects biomass) in the production of electricity, favouring projects which do not have



corporate links with generation, transmission or distribution companies. In addition, it has the objec-tives of enhancing regional opportunities, capacity building, job creation and reduction of green-house gases. The initial target was for a capacity of 3,300 MW by 2009 with equal shares of 1,100 MW for each of the technologies.

Proinfa projects are supported for 20 years (through power purchase agreements) and the costs of the scheme are recovered through a customer levy on electricity bills. The program costing is divid-ed in quotas, based on the Annual Proinfa Plan (PAP) prepared by Eletrobras and forwarded to ANEEL. According to ANEEL

3, the total value of Proinfa quotas approved for 2016 will be R$ 3.6

billion.

In 2004, a legal framework was introduced in Brazil to utilise energy auctions as a mechanism to ensure supply adequacy in the country. The system of ANEEL auctions has the following objectives: to contract energy at the lowest possible price (low rates); to attract investors to build new power plants with a view to the expansion of generation; and to retain the existing generation.

The centralised procurement process organised by the government is based on the load forecast by distribution companies; and short, medium and long-term energy contracts are auctioned to genera-tion facilities. Existing and new generation compete in different processes (“New energy auctions”, used to contract new capacity needed to meet the growth in electricity demand and “Reserve energy auctions”, which are organised at the discretion of the MME and used to contract supplementary energy to increase the system’s reserve margin). Policy mechanisms were introduced by the gov-ernment, such as the ability to conduct technology-specific auctions, as per the Laws No 10.848 and 10.847. The first technology-specific (biomass and small hydro) auction was held in 2007 (IRENA, 2013).

As per data of “Banco de Informações de Geração - BIG” (ANEEL, 2016), in June 2016 there were 523 biomass thermoelectric plants in operation, totalizing 13.4 GW. The main biomass sources in use were sugar cane bagasse (co-product of sugar and ethanol industry), black liquor (co-product of pulp and paper industry), charcoal, biogas and forestry wastes.

It is verified that the sugar cane sector is a leader in biomass energy generation in Brazil. Over 98% of Brazilian sugar mills are energy self-sufficient, burning the bagasse (residue from the milling). However, many mills burn bagasse in low-efficiency boilers and turbines in order to provide just enough steam and electricity to meet their own needs.

During the last decade, Brazilian mills have improved their cogeneration systems, using surplus ba-gasse to produce excess electricity, which is sold and dispatched into the grid. For this, the sector is investing in new cogeneration devices, as boilers with higher steam-production capacity and tur-bines. Besides ethanol and sugar production, sales of bioelectricity have been a business to sugar cane mills.

Currently, the “net metering” regulation is in course in Brazil. It is a billing mechanism which provides credit to customers for value of the electricity their system generates. Under this system, the cus-tomer's electric meter keeps track of how much electricity is consumed by the customer and how much excess electricity is generated by the system and sent back into the electric utility. This mech-anism creates a new opportunity for bioenergy, including small and micro generators in rural areas. The Brazilian Electricity Regulatory Agency (Agência Nacional de Energia Elétrica - ANEEL) Norma-tive Resolution No. 482, published on 17 April 2012, establishes the general conditions for distribut-ed micro-generation and mini-generation to have access to national distribution systems. However, the full use of this potential still requires many incentives to overcome existing challenges, such as reduction of taxes over the distributed energy and attractive financing for implementation of projects. Among the main barriers are lack of information on the advantages of investing in micro-generation and high equipment costs.

There are opportunities related to R&D, especially in development of local manufactures of equip-ment for small and micro generators. It may result in cost reduction, since the availability of equip-ment produced in the country reduces the need for imports. Research and development are also

3 http://www2.aneel.gov.br/aplicacoes/noticias/Output_Noticias.cfm?Identidade=9009&id_area (Accessed on 22/08/2016)

http://www2.aneel.gov.br/aplicacoes/noticias/Output_Noticias.cfm?Identidade=9009&id_area



important for implementing projects related to “smart grid”. As per the definition of IEC – International Electrotechnical Commission

4, “smart grid” is “an electricity network that can intelligently integrate

the actions of all users connected to it – generators, consumers and those that do both – in order to efficiently deliver sustainable, economic and secure electricity supplies”. One of the drivers of “smart grids” is sustainability: there are public interest groups putting pressure to reduce CO2 emissions through the adoption of alternative energy sources and distributed generation, and put in place regu-lations to increase energy efficiency. The use of smart grid operations allows for greater penetration of variable energy sources through more flexible management of the system Considering this, it is important to integrate renewable energy into the smart grid.

According to UNICA (Union of Sugar Cane Industry) the national policy objective is to increase the electricity production from the overall cane industry to about 14% of the national requirements by 2020. However, there are challenges related to current policies, like distortion of electricity prices and subsidies received for other renewable sources, as solar and wind, that make investment in bioelectricity not as attractive as some years ago.

Regarding pre-treatments of biomass for combustion, as pelletizing and briquetting, it is a relatively new industry in Brazil. The use of biomass as firewood or chips in direct combustion, with no pre-treatment, is the most common practice in the country. Forest material, mainly eucalyptus and for-estry industry residues (derived from eucalyptus and pinus plantations), are the most important feedstock.

According to the available data and interviews done during the mapping exercise, there are 13 pel-lets plants in operation in Brazil, mainly in the southern region, near the forest production centres. The best quality materials are those produced from Pinus wood. There are few industries using al-ternative materials, as sugarcane and “capim elefante” (elephant grass or Pennisetum purpureum). The country does not have specific standards for pellets production and quality assurance, which limits opportunities for exporting to Europe.

Regarding gasification, the technology for conversion of solid biomass to liquid fuels is still in devel-opment stage. There are research initiatives in gasification of biomass in the country, usually fo-cused on a few steps of the whole process. In Brazil, IPT – Technological Research Institute is lead-ing a research/pilot project for gasification of sugar cane biomass. There are also research projects aiming to convert municipal solid waste (MSW) into syngas and liquid biofuels. It was observed that the penetration of gasification technologies in the Brazilian energy market has been slow, requiring additional efforts on Research & Development. During the mapping study, it was found few compa-nies in Brazil providing technology and equipment for biomass gasification at commercial scale (e.g. Greene, W2E Bioenergia and Delta H Solutions).

Finally, the mapping exercise indicated that, despite of abundance of low-cost biomass and potential market demand, both for domestic market and for exportation, the sector still faces big challenges such as:

High logistics costs, due to the distances between the sites where biomass is produced and the sites where biomass is consumed or exported (ports). Lack of efficient transportation means for biomass also results in high logistic costs.

Lack of technology appropriate to the type of biomass; Lack of market strategies to compete with other fuels in commercial and industrial use, main-

ly with natural gas;

As per the stakeholders interviewed, the solid biomass sub-sector in Brazil also faces threats related to electricity prices of other renewables and lack of coherent policy and incentives that result in “go-stop” behaviour of the sector.

4 http://www.iec.ch/smartgrid/background/explained.htm (accessed on 22/08/2016)

http://www.iec.ch/smartgrid/background/explained.htm



Main Stakeholders and potential partners (full contact details are available in Annex 1 of this report):

ABETRE - Associação Brasileira de Empresas de Tratamento de Resíduos ABIB - Associação Brasileira das Indústrias de Biomassa e Energia Renovável Coalizão Brasil - Clima, Florestas e Agricultura COGEN - Associação da Industria de Cogeração de Energia Embrapa Agroenergia FIEMG-Federação das Indústrias do Estado de Minas Gerais FIEP - Federação das Indústrias do Estado do Paraná IBA – Indústria Brasileira de Árvores IBIOM - Instituto da Biomassa Energética IPT - Instituto de Pesquisas Tecnológicas Paraná Metrologia SENAI – Serviço Nacional de Aprendizagem Industrial TECPAR - Instituto de Tecnologia do Paraná UDOP - União dos Produtores de Bioenergia UNICA – União da Indústria de cana-de-açúcar UFV /RENABIO- Universidade Federal de Viçosa/Rede nacional de Biomassa para Energia

Gaps and Opportunities – Bio-Electricity and Bio-Heating (refer also to Chapter 6 of this re-port):

The following areas were identified during the mapping exercise:

Supplying of pelletizing and briquetting machinery and production systems applied to diverse feedstocks and in-line with international standards;

Consultancy and capacity for development of market (domestic/exportation) for pellets and briquettes;

Services of quality analysis and certification for pellets for exportation to Europe; Partnership for research combustion properties of alternative feedstocks, particularly wastes

and residues; Technology transfer for biomass gasification, in special for wastes and residues (including

municipal solid waste); Services and equipment to adapt burners (for conversion of boilers from other fuels to bio-

mass fuels); Consultancy, project design and equipment for small and micro scale bioelectricity using di-

verse feedstock; Grid design and Smart Grids; Investment in independent power production (joint venture).

3 . 2 C o n t e x t o f L i q u i d B i o f u e l s

Ethanol- 1st

and 2nd

Generation

The country is the largest biofuel producer in South America and one of the largest in the world. In 2015, the first in the world ranking was the US with biofuel production of 940,000 barrels/day; and the second was Brazil, which produced 449,000 barrels/day

5.

The country was a pioneer in developing sugarcane ethanol as a large-scale biofuel. Its 40-year-old ethanol fuel program is based on efficient agricultural technology for sugarcane utilization and uses modern equipment to process the feedstock to ethanol and the residue to heat and power.

According to FAO (2003), the Brazilian government inaugurated the national ethanol programme (PROALCOOL) in 1975. The major target of the programme was to reduce its oil import bill because, in the mid-1970s, Brazil was strongly dependent on imported oil. One of the direct effects of the pro-

5 https://www.weforum.org/agenda/2015/11/these-countries-produce-the-most-biofuels/ (accessed on 22/08/2016).

https://www.weforum.org/agenda/2015/11/these-countries-produce-the-most-biofuels/



gramme was the creation of a big domestic demand for this sugarcane product. In 1979, with the second oil-shock, the Brazilian government decided to enlarge the programme, increasing the sup-port to large-scale hydrated ethanol producers. A wide range of governmental investment support programmes were implemented in the 1980s, resulting in more than 4 million vehicles running on pure ethanol by the 1980's.

With the Brazilian debt crisis in 1982, followed by the declining international oil prices from 1986, inadequate ethanol supply and demand management raised serious market disruptions. It resulted in losing consumer credibility in ethanol fuel. The government took radical programme reforms over the 1997-1999 period, as the price liberalization and the abolition of the distribution monopoly given to Petrobrás.

Since then, the supply of gasoline versus ethanol has varied as have prices. Currently, most vehi-cles in Brazil are flex-fuel, which are capable of running on gasoline or 100% ethanol. The market remains volatile due to a number of factors such as high prices for sugar, financial problems that impact incentive, and harvest quality. Brazil is still the largest single consumer of biofuel in the world

6.

Despite the problems mentioned above, the Brazilian sugarcane ethanol has been recognized as "the most successful alternative fuel” to date. As a global biofuel industry leader, Brazil is a policy model for other biofuels-producing countries.

Currently, the country has a consolidated and organized industrial sector for ethanol production based on sugar cane, and a significant light vehicle fleet (flex-fuel or exclusively ethanol) which cre-ates a concrete internal market. The national legislation (Law No 13.033/2014) allows a mix from 18 to 27.5% of ethanol in the gasoline. Since 16

th March 2015, the mandatory blend of anhydrous fuel

ethanol in regular gasoline is 27%, according to Decree No. 75 (5th March 2015, MAPA - Ministério

da Agricultura, Pecuária e Abastecimento) and Resolution No. 1 (4th

March 2015, CIMA – Conselho Interministerial do Açúcar e do Álcool). The percentage in the “premium” gasoline is 25%.

Brazilian ethanol for fuel production in 2015 was 30.2 million m³ (Figure 8) and total ethanol exports in the same year was 1.3 million m³ (mainly to USA). On the other hand, Brazil still imports ethanol and the volumes imported in 2015 were approximately 0.45 million m³ (USA is also the main supplier of ethanol - corn-based - to Brazil).

Figure 8: Brazilian ethanol production from 2000 to 2015, in billion litres (Source: MME - Análise de Conjuntura dos Biocombustíveis, 2016)

Other feedstock being used for ethanol production is corn. This practice is already widely used in the United States. Recent data from the National Supply Company (CONAB), indicated that the supply

6 http://biofuel.org.uk/National-Fuel-Alcohol-Program.html (accessed on 22/08/2016)

http://biofuel.org.uk/National-Fuel-Alcohol-Program.html



of corn in Brazil is higher than domestic consumption, creating opportunity as feedstock for ethanol producers during the end of sugarcane season production, mainly in Brazilian central-west region. As per data provided during the interviews, there are at least two producer groups investing in corn ethanol in Brazil.

Regarding the 2nd

generation ethanol (ethanol cellulosic), the scenario is still unclear. Currently, there are only three plants installed in Brazil: Raízen (SP), CTC/São Manoel (SP) and Granbio (AL). CTC/São Manoel pilot plant is paralyzed since 2015 and the other two are facing operational prob-lems. It was mentioned during the interviews for this mapping that the problems are related to the pre-treatment equipment, originally designed for wood or cellulose, not for sugar cane material. It was also mentioned the high costs of imported hydrolytic enzymes (representing 20 to 25% of the production costs) as a big challenge to this technology.

Main stakeholders (full contact details are available in Annex 1 of this report):

The largest ethanol producers in Brazil:

o Raízen, ETH, BIOSEV, Petrobrás Biocombustíveis

Copersucar (the largest Brazilian ethanol exporter and trader, comprising 48 partner mills lo-cated in the south and southeast regions of Brazil.

Granbio (pioneer in 2nd

generation ethanol). UNICA (Union of Sugar Cane Industry), which comprises 130 associated companies repre-

senting approximately 50% of the sugarcane ethanol production in Brazil. Laboratories and research centers:

o CTBE - Laboratório Nacional de Ciência e Tecnologia do Bioetanol o CTC - Centro de Tecnologia Canavieira o Embrapa Agroenergia o UNICAMP – Universidade de Campinas

Gaps and Opportunities – Ethanol 1st

and 2nd

generation (refer also to Chapter 5 of this re-port):

Development of farm machinery/equipment using ethanol: it is a demand of sugar cane farmers, and would contribute to decrease the ethanol carbon footprint;

Development of small scales ethanol plants, using alternative feedstock (as manioc, sweet potato, corn) and electricity generators using ethanol;

Partnerships for technology transference/research related to cellulosic ethanol production equipment adapted to sugar cane;

Partnerships for technology transference or for local production of enzymes used for cellulo-sic ethanol.

Biodiesel

According to MME in the document “Análise de Conjuntura dos Biocombustíveis” (2015), Brazil is the world's second largest biodiesel producer and consumer. Despite being among one of the larg-est biodiesel producing countries globally, biodiesel production in the country has been much lower than the current installed capacity. The Brazilian biodiesel market includes approximately 60 produc-tion plants, with a current nameplate capacity estimated at approximately 7 billion liters/year. Total production in 2015 was 3.9 billion liters. The Midwest and South regions produced 83% of all diesel consumed in the country in 2015.

The most important driver of biodiesel production in Brazil is the National Program for Production and Use of Biodiesel (PNPB), launched in 2005. It is a Federal Government program, which estab-lished the regulatory framework and normative basis for biodiesel production and sales in the coun-try. Production is directed to the internal market to meet the blending mandate requirements.

Since the Federal Law approved in 2014 (Law No 13.033/2014), the biodiesel blending increased from 5% (B5) to 7% (B7). In March 2016, it was approved the Law No 13.262 that increases the per-centage of addition of biodiesel to fossil diesel for various types of vehicles. Thus, the blending man-



date will increase from the current 7% to 8% by 2017, and increasing one percentage point every 12 months, i.e., 9% by 2018 and, 10% by 2019.

The government through a public auction system regulates biodiesel sales in domestic market. Ex-portation of biodiesel is not a significant business for Brazilian companies. Currently, only few plants are exporting to Europe, but very small volumes and sporadically.

Despite the variety of feedstock, which can potentially be used to produce biodiesel, the production relies over conventional and food crops. The most used are soybean (78.3%), animal fat (17.1%) and other materials – such as used cooking oil, cottonseed, palm oil and other fats (4.6%) (ANP, 2016).

Main stakeholders (full contact details are available in Annex 1 of this report):

ABIOVE – Associação Brasileira das indústrias de óleos vegetais ANP - Agencia Nacional do Petróleo, Gás Natural e Biocombustíveis (National Agency for

Oil, Natural Gas and Biofuels) Aprobio - Associação dos Produtores de Biodiesel do Brasil Caramuru (Biodiesel producer) Granol (biodiesel producer) JBS (biodiesel producer) Oleoplan (biodiesel producer) Petrobrás (biodiesel producer) UBRABIO - União Brasileira de Biodiesel e Bioquerosene

Gaps and Opportunities – Biodiesel (refer also to Chapter 6 of this report):

Partnership, technology transference and equipment for implementation of units for esterifi-cation of acid oils for biodiesel production. The acid oils are cheaper than refined oils and the pre-esterification units in existing biodiesel plants are very poor. Efficient esterification units would bring a good economic impact on biodiesel costs.

The crude glycerin is a byproduct of biodiesel chain, and corresponds to 10% mass of the produced biofuel. Almost all the glycerine produced in Brazil is currently exported. Partner-ship for implementing plants that convert glycerine in glycerol or into higher value-added products is an opportunity.

Methanol is a key input to obtain the biodiesel and is mainly imported from USA (that pro-duces methanol from the natural gas). Brazil has only one producer of methanol in Bahia state, but due to high costs of natural gas in the country, it is not economically feasible. Part-nership or technology transfer for implementation of methanol plants using biomass is an in-teresting alternative, especially in the Brazilian Midwest, where methanol is very expensive and there is plenty of biomass. Methanol is also interesting product for many other bio-based and chemical industries.

“Renewable diesel” production technology (or “Green Diesel”) is opportunity, as this biofuel does not face any barriers in the automotive sector since it is considered "drop in". In Brazil, only Amyris (US company with an industrial plant installed in Brotas, SP) produces “renewa-ble diesel” using sugar cane as feedstock.

The development of new supply chains using alternative and non-food feedstock, available in the different regions, is a crescent demand. Partnership and technology transfer to pro-cess non-conventional sources of vegetable oils (e.g. Macauba fruits, jatropha, etc.).

Technology transfer and equipment to install economically feasible plants for biodiesel pro-duction in small and micro-scales, near to the consumption sites (e.g. rural areas where die-sel fossil is intensively used for agriculture activities and transport).

The use of waste oils and fats, as animal fats and used cooking oil, is also an opportunity, which can result in low carbon biofuels. Technology transfer and capacity for more efficient and smart collecting systems and partnership for creation new markets for waste oils and fats (as exportation to Europe, where there are incentives for biofuels from waste materials).



Biojetfuel

Aviation is one of the strongest growing transport sectors and this trend will continue. In the period up to 2030, global aviation is expected to grow by 5 % per year, according to International Air Transport Association - IATA (2015). The IATA members are committed to achieve carbon-neutral growth starting in 2020 and to reduce 50 % overall CO2 emissions by 2050. In this context, ad-vanced liquid biofuels are the only low-CO2 option for substituting kerosene, as they have high spe-cific energy content. Gaseous biofuels and electrification are definitely no option for air transporta-tion.

Brazil has demand for biojetfuel and both national and international airlines are supporting initiatives to promote the use of biofuels, such as the “Brazilian Biojetfuel Platform”.

The main challenges to mitigate the carbon footprint of aviation sector were published in 2013 by FAPESP, the University of Campinas (Unicamp), Boeing and Embraer (Flightpath to Aviation Biofu-els in Brazil: Action Plan). The results indicated that, despite of biomass availability (mainly sugar cane, soybean and eucalyptus and other non-food feedstocks), the country has no competitive refin-ing technology to convert biomass into biojetfuel. In addition, the current available technology to be imported has costs significantly higher than the costs for fossil kerosene.

Main stakeholders and potential partners (full contact details are available in Annex 1 of this report):

ABEAR: Associação Brasileira de Empresas Aéreas Brazilian Biojetfuel Platform EMBRAER GOL Airlines RenewCo Produtos Químicos Renováveis Ltda SEDE – MG: Secretaria de Estado de Desenvolvimento Econômico de Minas Gerais (Secre-

tary of Economic Development of Minas Gerais State) UBRABIO: União Brasileira de Biodiesel e Bioquerosene UFMG – Universidade Federal de Minas Gerais UFRJ – Universidade Federal do Rio de Janeiro UNICAMP – Universidade de Campinas

Gaps and Opportunities – Biojetfuel (refer also to Chapter 6 of this report):

Consultancy, partnership and technology transfer to implement a complete supply chain for biojetfuel;

Specific technology transfer and equipment for one or more of the three biojetfuel production routes using available biomass: Hydrogenated Esters and Fatty Acids (HEFA); Fischer-Tropsch (FT) based on biomass (BtL - biomass to liquid) or Renewable Synthesized Iso-Paraffinic (SIP) fuel (renewable farnesane hydrocarbon or ASTM);

Partnership for laboratory analysis and quality control of biojetfuel.

Biorefineries and other advanced biofuels:

Biorefinery concept and technologies are in the stage of R&D or piloting phase.

Amyris plant (a US company with operations in Brazil), using sugar cane syrup as feedstock, is the only biorefinery in operation in Brazil, producing molecules for biofuels (“green diesel” and biojetfuel), cosmetic and food industry. Research projects have been implemented in pulp and paper and sugar cane sectors – that announced investments in 2012 and 2013

7 using lignocellulosic ma-

terials - but there are no new biorefinery units coming in short term.

Regarding fuels from algae based production and further upgrading into transportation fuels and bio-products, Brazil is in early stages of research and development. EMBRAPA and federal universities are coordinating studies in this area. There is a plant in Brazil (a joint venture between the US

7 http://ottosistemas.com.br/noticias.php?ler=Mzcz (Accessed on 13/09/2016)

http://ottosistemas.com.br/noticias.php?ler=Mzcz



Solazyme and BUNGE) in operation since 2015 producing algae oil from sugar substract. Despite of biofuels are included in its portfolio, Solazyme-Bunge production has been delivered oils to personal care and food industry.

Brazil has a great potential and lacks the academic knowledge and practical expertise to implement this kind of projects, including the development of new business models for multi bio-based prod-ucts. Among the positive aspects to leverage biorefineries projects are

8:

Exceptional availability of biomass from agriculture and forest plantations; Opportunity for revitalization of obsolete industrial processes and low energy efficiency; Great opportunities of eco-efficiency for industries generating organic waste and air pollu-

tants; Opportunities to expand the portfolio of industrial products with higher added value.

However, there are unknown technological routes that need to be improved for the feasibility of the biorefineries, in terms of economy as well of process quality and efficiency. Such uncertainties, add-ed to the Brazilian economic crisis, resulted in slow implementation of new projects.

Main Stakeholders (full contact details are available in Annex 1 of this report):

ABBI - Associação Brasileira de Biotecnologia Industrial (engages the private sector) BNDES – Banco Nacional de Desenvolvimento CTBE - Laboratório Nacional de Ciência e Tecnologia do Bioetanol EMBRAPA UNICAMP – Universidade de Campinas

Gaps and Opportunities – Biorefineries (refer also to Chapter 6 of this report):

Basic studies and services, as laboratory analysis protocols and equipment for chemical study of biomass and metabolic profile and characterization/quality analysis of biomass products;

Consultancy and training/education on technologies applied to biorefineries; Consultancy and training/education on technologies applied to algae for biofuels and bio-

products; Partnership with research centres and industry association for technology transfer.

4 B i o m a s s f o r E n e r g y i n E u r o p e

Initial data about the European biomass sector was obtained from interviews with experts based in Europe, who suggested to contact biomass and biofuels associations and to consult specialized publications and websites. Most of the information about associations was gathered from these con-tacts. In addition, details about the biomass and bioenergy clusters were obtained from the Europe-an Cluster Collaboration Platform

9.

The energy production (considering “Primary Energy”) in EU 28 countries is continuing to drop steadily, from 941 Mtoe (Megatonne or million tonne of oil equivalent) in 2000 to 789 Mtoe in 2013. At the same time, the contribution of renewable energy sources almost doubled from 97 Mtoe in 2000 to 192 in 2013. These data indicate that renewables are the most important Primary Energy source in the region, more important than coal, gas or oil (AEBIOM, 2015).

Despite the decrease in total primary energy production in the period from 2000 to 2013, European energy consumption remains substantially higher than in the past, which makes Europe increasingly dependent on imports. In 2013, the EU total gross inland consumption (energy consumed in EU28) reached 1,666 Mtoe. Europe has emerged as the prime market for the trade of biomass for energy where more than 30% of biomass resources currently consumed are imported.

8 http://www.portaldobiogas.com/biorrefinarias-brasil/ 9 http://www.clustercollaboration.eu/

http://www.portaldobiogas.com/biorrefinarias-brasil/

http://www.clustercollaboration.eu/



According to AEBIOM Statistical Report (2015), the countries with the highest production of renewa-ble energy sources are:

Germany (33 Mtoe) Italy (23 Mtoe) France (23 Mtoe)

Biomass accounts for 66 % of the total renewable energy consumption in EU. Solid biomass repre-sents the main share, followed by biogas, transport biofuels and organic, solid municipal waste. Considering the same report published by AEBIOM, data indicates that the highest percentage con-tribution of biomass to the final national energy consumption was found in Latvia (31.9%), Finland (31.8%) and Sweden (31.6%).

As per data obtained in 2013 (AEBIOM, 2015) the market penetration of renewables varies among three energy sectors: they are 25.4% in the gross final consumption of electricity; 16.5% in heating and cooling and 5.4% in transport.

The share of biofuels in the EU market for road transport fuel is rising, and there are initiatives for biofuels use in aviation and marine. According to interviewed experts, European strong growth of biofuels production and consumption is driven by regulations. Two pieces of EU legislation (Renew-able Energy Directive (RED) and Fuel Quality Directive (FQD)) have considerable impact on the biofuels landscape in Europe over the next decade. They are part of the EU’s 2020 climate and en-ergy framework, which set targets to EU member states by 2020. The RED also sets an overall EU target of 20% energy from renewable sources and a specific flat-rate sub-target for all Member States of 10% transport energy from renewable sources by 2020. Other targets in the 2020 package include a 20% improvement to energy efficiency (which helps make renewables targets more achievable) and a 20% reduction in GHG emissions versus 1990 levels (towards which low-carbon renewable energy is an important contributor).

The EU Directives also frame the basis for sustainability criteria, to be applied in EU countries and in countries exporting biomass and biofuels to Europe. So, Brazilian companies exporting biofuels to Europe have to comply with the EU RED clauses.

Since 2009, the interest for biomass and biofuels has created additional incentive to Research & Development on alternative feedstocks as well to more efficient and sustainable conversion technol-ogies. However, in 2015, the EU focused its efforts to economic recovery of its members, rather than encouraging renewable sources actions, especially the first generation biofuels.

Many EU members were urged to protect their biodiesel industry, taking anti-dumping action against major exporters such as the United States, Argentina and Indonesia, resulting in an opportunity win-dow to other exporters, such as Brazil. In 2015, Brazil exported around 10,000 tons of biodiesel to Europe. New business opportunities have been raised to export Used Cooking Oil and other fat resi-dues to Europe.

According to the European Biodiesel Board10

, the total biodiesel production capacity in Europe in 2014 was 23,093,000 tonnes. Data of actual production from 1998 to 2013 is presented in the Figure 9, showing Germany as the biggest producer, followed by France, Spain and Italy.

10 http://www.ebb-eu.org/stats.php (accessed on 22/08/2016)

http://www.ebb-eu.org/stats.php



Figure 9: EU production of biodiesel from the period 1998 - 2013 (Source: European Biodiesel Board Statistics)

Regarding the ethanol, as per statistics provided by EPURE11

(European Renewable Ethanol) the European installed capacity production was 8,799 million litres in 2014. France is the most important country, followed by Germany and United Kingdom. Information per country is indicated in the Figure 10.

Approximately 600 million litres of ethanol were imported, which is less than 10% of total consump-tion. The majority, 85% of ethanol was used in fuel, with 7% used in industrial applications, and 7%

in food and beverages12.

According to UNICA13

, in 2015, Brazilian ethanol producers exported 79.5 million litres to EU.

Figure 10: EU ethanol installed production capacity in 2014, in million litres (Source: European Renewable Ethanol Statistics)

11 http://epure.org/resources/statistics/ (accessed on 22/08/2016) 12 http://ethanolproducer.com/articles/12356/epure-releases-annual-report-on-state-of-eu-ethanol-industry (accessed on

22/08/2016) 13 http://www.unicadata.com.br/ (accessed on 22/08/2016)

http://epure.org/resources/statistics/

http://ethanolproducer.com/articles/12356/epure-releases-annual-report-on-state-of-eu-ethanol-industry

http://www.unicadata.com.br/

http://www.ebb-eu.org/images/1998-2013_prod_stats_big.jpg



As per 2014 data14

, the main feedstock used in Europe for ethanol production are maize (42%) and wheat (34%). Beet and other cereals are also used.

Regarding solid biomass, about 70% of total bioenergy feedstock in Europe originates from forest and forest industries. Wood chips is one of the most important biomass fuels in EU. As per data col-lected by BASIS Project

15, there are almost 4,000 plants (> 1MW) using wood chips in Europe. The

top five countries in number of plants using chips are France, Austria, Germany, Finland and Swe-den. However, considering countries chip consumption, Germany is the biggest consumer (11.5 million dry tonnes of wood/year).

The wood pellet market is also large in Europe. With 13.5 million tonnes of wood pellet produced in 2014, EU is the largest producer in the world amounting to around 50% of the global world produc-tion. They are used in large scale for heating (from home scale up to large industrial and commercial scales). According to AEBIOM (2015), EU production had a growth of 35% from 2010 to 2014 and of 11% from 2013 to 2014. As the EU production is mainly dedicated to the heat market, the sector has been impacted by the general slowdown of the EU heating market (due to the mild winter – showing that the market is extremely weather-dependant, the low price of heating oil and the competition with other technologies).

In 2014, Germany was the biggest EU producer of pellets, with 2.1 million tonnes produced in 2014, followed by Sweden with nearly 1.6 million tonnes and Latvia which is showing a boom in its produc-tion with more than 1.3 million tonnes (Figure 11). It is also important to highlight that the growing of pellets industry is linked to the EU governmental policy, which includes subsidies and state support for power plants, which are driven by biomass. Several coal-fired power plants are converting their units to biomass.

14 http://epure.org/media/1266/type-of-feedstock-used.png (accessed on 23/08/2016) 15 www.basisbioenergy.eu (accessed on 20/06/2016)

http://epure.org/media/1266/type-of-feedstock-used.png

http://www.basisbioenergy.eu/



Figure 11: Production of wood pellet in Europe in 2014 and the top 5 producer's countries (extracted from AEBIOM, 2015)

Regarding the pellets consumption for heating (residential and commercial heating), Italy was the biggest consumer in 2014 (2.9 million tonnes), followed by Germany (2.0 million tonnes) and Swe-den (1.4 million tonnes). In these countries pellets become more and more popular since their gov-ernments have imposed high taxes for gas, oil and coal.

Pellets are also used by electricity generators and by utility-scale CHP plants (Combined Heat and Power plants). This is indicated as “industrial consumption”. The biggest consumers are United Kingdom (4.7 million tonnes) and Denmark (1.5 million tonnes). Europe is also well positioned in the machinery and devices related to pellets production and use.

The increase of demand for wood pellets all over the world stimulates trade growth. USA and Cana-da are the world biggest exporters of pellets. Wood pellets exported from North America to Europe reached 4.7 million tons in 2013

16. Brazil participation in the international market is insignificant if

compared with North America. In the same year, the total production of pellets in the country achieved only 59,980 tons, mainly delivered in the domestic market.

17

There are European standards for pellets quality, in special for home heating. The European Pellet Council (EPC)

18 coordinates the ENPlus certification and adopts this system according to market

needs. The “ENPlus” is a quality seal which accounts for the whole wood pellet supply chain – from

16 http://biomassmagazine.com/articles/10311/north-american-wood-pellet-exports-to-europe-double-in-2-years 17 www.iee.usp.br/.../Javier%20F.%20Escobar%20-%20woodpellets%20Brasil_2014.pdf 18 http://www.pelletcouncil.eu/ (accessed on 20/06/2016)

http://biomassmagazine.com/articles/10311/north-american-wood-pellet-exports-to-europe-double-in-2-years

http://www.iee.usp.br/.../Javier%20F.%20Escobar%20-%20woodpellets%20Brasil_2014.pdf

http://www.pelletcouncil.eu/



production to delivery to the final customer. There are accredited certification bodies and testing bodies in Europe to carry out verification and testing services for ENPlus certification.

Biomass gasification technology has been developed in Europe, with significant investments in Germany and Sweden. Products of gasification can be used for heat and power generation, sepa-rately or in CHP applications, as well as for the production of transportation fuels and chemicals. According to the Gasification & Syngas Technologies Council (GSTC)

19, the demand for smaller,

modular gasifiers for biomass and waste gasification is increasing. Generally, gasification of biomass and municipal solid waste does not require the larger gasifiers that are used in industrial applica-tions. The municipalities interested in biomass and waste gasification are searching for gasifier that is just big enough to handle the solid waste from a particular city. Other users, for example in rural areas, look for modular gasifiers that are able to be easily moved to the sites where the supply of biomass exists.

As per the European Biofuels Technology Platform20

, there are a number of gasification pilot plants in operation in Europe, as such: BioDME (Sweden), BIOLIQ (Germany), Güssing FT (Austria), BioTfueL (France). For commercial plants, EUROPLASMA (France) is one of the biggest player, working through its subsidiary CHO Power

21, that install gasification plants to produce electricity from

waste and biomass.

Regarding advanced biofuels and biorefineries, European innovation clusters are well positioned to help to address specific technological issues and knowledge gaps. In the biojetfuel sub-sector, there are initiatives developed by European organizations, as the ITAKA project (Initiative Towards Sus-tainable Kerosene for Aviation)

22 and commitment

23 of major European Airlines (e.g. KLM, Air

France, Lufthansa) to reduce their GHG emissions. Some partnerships are already being estab-lished among European and Brazilian organizations. In 2014, Be‐Basic, KLM and SkyNRG signed a Memorandum of Understanding with the Brazilian State Minas Gerais, to join forces in the develop-ment of an aviation biokerosene value chain, and becoming part of the Minas Gerais biojetfuel plat-form (Plataforma Mineira de Bioquerosene). One of the feedstock being discussed by the MG Biojetfuel Platform is the oil extracted from Macaúba palm tree fruit.

The mapping study indicated that:

European companies are well positioned to offer technological solutions, services and prod-ucts to Brazilian biomass for energy sector;

Special attention should be given to the characteristics of the biomass available in Brazil. There are materials from diverse sources (agriculture and forestry residues, energy crops, industrial wastes etc) and it can affect the efficiency and general performance of equipment designed in Europe to process other type of biomass. In addition, the different climate varia-bles (temperature and humidity) where the technology will be used are important factors when exporting technology for biomass conversion. Partnership for local adaptation to di-verse types of biomass or local conditions may be required;

For those sub-sectors without a large scale or commercial demand in short term (e.g. Biorefinery and algae), there are opportunities related to partnerships and research co-operation, support to pilot or reference plants, as well in the area of training/education;

Technologies using waste and residues as biomass for energy – one of the areas where Eu-ropean companies are well developed - have a great opportunity, taken into account their potential to solve other environmental and economic problems of Brazilian companies (dis-posal of wastes). Usually, they also have lower carbon footprint, if compared with biomass from crops or plantations, and can be used by diverse partners and sectors (e.g. agriculture, a number of industry sectors, municipalities etc.).

19 http://www.gasification-syngas.org/resources/the-gasification-industry/ (accessed on 22/08/2016) 20 http://www.biofuelstp.eu/btl.html (accessed on 22/08/2016) 21 http://www.cho-power.com/ (accessed on 22/08/2016) 22 http://www.itaka-project.eu/default.aspx (accessed on 20/06/2016) 23 http://www.safug.org/safug-pledge/ (accessed on 20/06/2016)

http://www.gasification-syngas.org/resources/the-gasification-industry/

http://www.biofuelstp.eu/btl.html

http://www.cho-power.com/

http://www.itaka-project.eu/default.aspx

http://www.safug.org/safug-pledge/



Main Stakeholders and potential partners (full contact details are available in Annex 2 of this report):

AEBIOM - European Biomass Association BioEconomy Cluster EASME - Executive Agency for SMEs EBTP - European Biofuels Technology Platform EUBIA - European Biomass Industry Association Eupure - European Renewable Ethanol European Biodiesel Board European Cluster Collaboration Platform EWABA - European Waste to advanced biofuels Association INBIOM - The Danish Innovation Network for Biomass Swedish Bioenergy Association B-Basic/TU Delft - University of Technology WBA - World Bioenergy Association

5 L i s t o f c o n t a c t s a n d o t h e r p o t e n t i a l p a r t -n e r s f o r L C B A

Many stakeholders and associations in the biomass for energy sector in Brazil and Europe were contacted between May and June of 2016. The full list of Brazilian organizations is provided in the Annex 1 and European organizations are listed in Annex 2 (both annexes provided in the form of MS-Excel spreadsheets). These lists also provide the main contacts for the LCBA, when inviting organizations to apply for the Biomass Mission.



6 S u m m a r y o f t h e s u b - s e c t o r s a n d p o t e n t i a l d e m a n d s a n d o p p o r t u n i t i e s :

A) BIOMASS FOR ENERGY B) AVAILABILITY IN BRAZIL 1 - MATURE 2 - ESTABLISHED 3 - INCIPIENT 4 - NOT AVAILABLE

C) INDUSTRY SECTOR SEGMENTATION

D) INTERNATIONAL TRENDS/ /INNOVATIVE TECHNOLOGIES (EUROPE)

E) INNOVATION NEEDS & GAPS IN BRAZIL 1 - HIGH 2 - MEDIUM 3 - LOW/NOT REQUIRED/LONG-TERM

F) BUSINESS POTENTIAL FOR LCBA

G) GEOGRAPHIC MARKET SEGMENTATION

H) MARKET ASSESSMENT: POTENTIAL STAKEHOLDERS/ SUPPLIERS (REFER ALSO DO ANNEX 1 AND ANNEX 2)

SUB-SECTOR

TECHNOLOGY/ SERVICES/ PRODUCTS

A.1 – Solid biomass: Pellets and Briquettes

A.1.1 Pelletizing and Briquetting machinery and production sys-tems

2

Industry (machin-ery, Chemical) Engineering

Machinery using multi-feedstock (main-ly forestry and agricul-ture wastes) and additives adequate to end users

2

Potential: companies offering equipment or technology for high quality pellets/briquette from multi-feedstock Barriers: exchange rate, importation duties; adaptation to local conditions and types of tropical biomass

Near to forestry indus-try and sugar cane regions (availability of biomass) and con-sumer centers in South and Southeast regions

Brazil: Industries and associations of forestry (e.g. IBA) and sugar cane sectors (e.g. UNICA, Copersucar, SOCICANA); pellets and briquettes produc-ers and associations (ABIB); new investors; Commercial Repre-sentatives Europe: Technology providers; Equipment manufacturers and sellers; Additives producers; Commercial representa-tives; Project developers and project designers

A.1.2 Pellets’ quality analysis and certification for exportation (EnPlus).

3 Services (laborato-ries, inspections, consultancy)

Specific standards for domestic and indus-trial use of pellets

2

Potential: for laborato-ries offering quality analysis; for certification companies doing verifi-cation of the supply

Near to forestry indus-try and sugar cane regions (availability of biomass) and near to sea ports in South

Brazil: Pellets and briquettes producers; Laboratories; Certification bodies; SENAI, TECPAR and










SUB-SECTOR


chain; for consultants preparing the industry for certification. Barriers: language, seasonality of pellets market, quality parame-ters not tangible for some kind of tropical biomass (e.g. Hard wood)

and Southeast re-gions

FIEP. Europe: Consultants; Certifiers accredited by EnPlus and other standards; Laboratories

A.1.3 Pellets and Briquettes market development (domestic and exportation)

3 Services (Consul-tancy, Sales)

Know how in devel-opment of supply chains, exportation channels for pellets and briquettes and marketing strategy

2

Potential: traders to develop exportation channels for Brazilian pellets and briquettes; business consultants to support domestic mar-keting and to create demand. Barriers: seasonality of pellets market, quality parameters required by EU; low costs of fossil fuels; costs to adapt burners

Near to consumer centers in South and Southeast regions where other fuels or conventional firewood can be displaced (e.g. restaurants, hotels, pizzerias, laundries, hospitals etc.)

Brazil: Pellets produc-ers and associations (e.g., BIB, APROBAMBU); SEBRAE and SENAI Europe: Traders Commercial representa-tives Consultants in Business development (sector biomass)

A.1.4 Adapted burners for con-version of boilers, furnaces, stoves, heaters from other

2

Industry (equip-ment) Services (Consul-tancy, Sales)

Adapt existing equip-ment (converting from other fuels or from firewood to pellets)

2

Potential: companies offering equipment or technology. Barriers: exchange rate, adaptation to local

Near to consumer centers in South and Southeast regions where other fuels or conventional firewood

Brazil: Pellets produc-ers and Associations; Engineering companies; re-sellers. Europe:










SUB-SECTOR


fuels to pellets and briquettes

conditions and types of tropical biomass; train-ing of users

can be displaced (e.g. restaurants, hotels, pizzerias, laundries, hospitals etc.)

Technology providers; Equipment manufactur-er; Commercial representa-tives

A.2 – Solid biomass: Bioelec-tricity and Cogenera-tion

A.2.1 Design of bioelectricity generation sys-tems under the approach of “Smart grids”

3

Engineering Services (Educa-tion) Research & Devel-opment

To incorporate dis-tributed renewable generation from bio-mass in Smart grids

2

Potential: experts and engineering companies offering technology and projects. Organizations offering capacity build-ing. Barriers: adaptation to local conditions; lack of financial incentives; uncertainties related to regulatory framework and to technologies initial costs and perfor-mance.

South and Southeast regions

Brazil: Associations of bioenergy generators (e.g., COGEN); Electricity concession-aires; Engineering companies Europe: Engineering companies; Consultants; Universities and re-search institutes

A.2.2 Project and equipment for small and micro scale generation

2

Engineering Industry (machin-ery)

Small and micro generation using locally available feed-stock, in particular wastes and residues (forestry, agriculture or municipal waste)

2

Potential: companies offering technology and projects. Barriers: adaptation to local conditions; lack of financial incentives and high initial costs; uncer-tainties related to regu-latory framework

Whole country, near to the biomass pro-ducers and energy consumers. Potential in rural areas or near agroin-dustry region.

Brazil: Associations of bioenergy generators (e.g., COGEN); Independent genera-tors; Agroindustry and farmer associations Engineering companies Europe: Engineering companies;










SUB-SECTOR


Manufacturers of equipment Consultants

A.3 – Solid biomass: Gasifica-tion and Biomass to Liquid (Btl)

A.3.1 Project and equipment for gasification and Btl

3

Engineering Industry (Chemical and machinery)

Implement plants to use municipal and industrial solid wastes as feedstock for “drop in” liquid biofuels (e.g. Renewable diesel).

1

Potential: Partnership for technology transfer; supply of equipment for gasification; consultan-cy for project design Barriers: exchange rate, importation duties (in case of equipment); adaptation to local conditions and types of tropical biomass

Whole country, near to the biomass pro-ducers and biofuels consumers (potential for producing biojetfuel for aviation)

Brazil: Investors; mu-nicipalities; companies working with waste management and treatment (e.g. ABATRE, ABRELPE, SOLVI); biofuel produc-ers; biojetfuel sector (RenewCo). Europe: Engineering companies; Manufacturers of equipment Consultants

A.3.2 Capacity building in gasifi-cation and Btl process

3

Services (Educa-tion) Research & Devel-opment

Implement plants to use municipal solid wastes as feedstock for liquid biofuels

1

Potential: Partnership for installing demo or pilot plants; collabora-tion in courses and research projects Barriers: language, lack of investment

South, Southeast and Midwest regions

Brazil: Universities, research institutes (IPT, EMBRAPA), SENAI, Associations Europe: Biomass associations; Universities and re-search institutes.

A.4 – Liq-uid Biofu-els: Etha-nol (1st

A.4.1 Project and technology supply for small and micro scale etha-

1

Engineering Industry (Machin-ery)

Use of multi-feedstock for bioethanol produc-tion

2

Potential: Partnership for installing demo or pilot plants; collabora-tion in rural develop-

Whole country, near to the biomass pro-ducers and biofuels/ bioenergy consumers

Brazil: Farmers, asso-ciations (e.g., SOCICANA), rural outreach agencies,










SUB-SECTOR


genera-tion)

nol distilleries ment projects Barriers: adaptation to local conditions and types of tropical biomass; lack of investments

research institutes (EMBRAPA), social enterprises (e.g. Green Social Bioethanol). Europe: Biomass associations; Universities and re-search institutes.

A.4.2 En-gines/equipment fuelled with etha-nol to be used in farms and agro-industries

2

Engineering Industry (Machin-ery)

Reduce the GHG emissions using biofuels in agriculture mechanized opera-tions; use of local available energy sources

2

Potential: Partnership for developing engines and equipment Barriers: adaptation to local conditions; regulations related to biofuels use; fossil fuel low prices

Southeast and Mid-west regions

Brazil: Farmers, Agri-culture associations, rural outreach agencies, research institutes Europe: Biomass Associations; Universities and re-search institutes; Engines and equipment manufacturers.

A.5 – Liq-uid Biofu-els: Etha-nol (2st genera-tion)

A.5.1 Production of enzymes and catalysts for cellulosic ethanol

3

Industry (Chemical and Biotechnology) Research & Devel-opment

New industry under development

3

Potential: Partnership with companies and institutes for technology transfer or for installing laboratories and units for enzymes and cata-lysts production; Barriers: Low demand in short/medium term (few industries producing

Southeast, Mideast and Northeast regions (where there are cellulosic ethanol plants installed or planned to be in-stalled).

Brazil: Ethanol industry (companies and asso-ciations, as UNICA, Copersucar and ABBI); research institutes (CTBE, CTC, Embrapa) Europe: Universities and re-search institutes; Enzymes producers.










SUB-SECTOR


2nd generation etha-nol); Brazilian regulation and permission process for biotechnology industries

A.5.2 Pre-treatment for lignocellulosic feedstocks

3

Industry (Chemical and Biotechnology) Research & Devel-opment

New industry under development

3

Potential: Partnership with companies and institutes for technology transfer Barriers: Low demand in short/medium term (few industries producing 2nd generation etha-nol).

Southeast, Mideast and Northeast regions (where there are cellulosic ethanol plants installed or planned to be in-stalled).

Brazil: Ethanol industry (companies and asso-ciations, as UNICA, Copersucar and ABBI); research institutes (CTBE, CTC, Embrapa) Europe: Universities and re-search institutes; Consultants

A.6 – Liq-uid Biofu-els: Bio-diesel

A.6.1 Project and technology supply for small and micro scale bio-diesel plants

2

Engineering Industry (Machinery and Chemical)

Use of wastes and co-products, as Used Cooking Oil (UCO) and animal fats in biofuel production

2

Potential: Technology transfer; offer equip-ment Barriers: adaptation to local conditions and types of tropical biomass; lack of investments

Whole country, near to metropolitan areas (in case of UCO) or waste generators regions (as tallow and other animal fats)

Brazil: Biodiesel indus-try (companies and associations, as UBRABIO, ABIOVE and APROBIO); Municipalities Europe: Biodiesel technology providers; Universities and research institutes; Consultants.

A.6.2 logistics /collection sys-tems of Used

3 Engineering Industry (Machinery

Use of wastes and co-products, as Used Cooking Oil (UCO)

2 Potential: design of efficient collection sys-tems for different sup-

Whole country, near to metropolitan areas (in case of UCO)

Brazil: Biodiesel indus-try (companies and associations, as










SUB-SECTOR


Cooking Oil (UCO)

and Chemical) Services (Logistics, Consultancy)

and animal fats in biofuel production

pliers to be processed locally; partnership for export UCO to Europe Barriers: adaptation to local conditions; lack of infrastructure (collection and transport)

UBRABIO, ABIOVE and APROBIO); Municipalities Retailers; Fast food chains. Europe: Traders of UCO; Companies with know how in UCO collection systems (e.g. EWABA); Consultants.

A.6.3 Production of methanol from biomass

3 Engineering Industry (Chemical)

To substitute the methanol from fossil source for a renewa-ble source

1

Potential: technology transfer; partnership with biodiesel or chemi-cal plants. Barriers: adaptation to local conditions; initial costs.

Near to biodiesel plants in Mideast region.

Brazil: Biodiesel indus-try (companies and associations, as UBRABIO, ABIOVE and APROBIO); chemical industry; investors. Europe: Consultants; Technology and engi-neering companies; Investors

A.6.4 Glycerine value chain


To add value to all co-products of biofuel industry

2

Potential: technology transfer; partnership with biodiesel or chemi-cal plants. Barriers: adaptation to local conditions; initial costs;


Brazil: Biodiesel indus-try (companies and associations, as UBRABIO, ABIOVE and APROBIO); chemical industry; investors. Europe:










SUB-SECTOR


market development for glycerin derivate prod-ucts.

Consultants; Technology and engi-neering companies; Investors; Potential clients.

A.6.5 Esterifica-tion of acid oils/fats


Use residual oils/fats as feedstock and process biodiesel and multi-products

2

Potential: technology transfer; partnership with biodiesel or chemi-cal plants. Barriers: adaptation to local conditions; initial costs, development of market for other products;


Brazil: Biodiesel indus-try (companies and associations, as UBRABIO, ABIOVE and APROBIO); chemical industry; investors. Europe: Consultants; Technology and engi-neering companies; Investors; Potential clients.

A.7 – Algae

A.7.1 Cultivation and processing algae for biofuels and biomaterials

3

Industry (Biotech-nology Services (Educa-tion) Research & Devel-opment

Technology under development for bioenergy and bio-materials

3

Potential: Partnership with companies and institutes for technology transfer or for installing demo units; capacity building Barriers: Low demand in short/medium term (few industries working on this), Brazilian regulation and

Southeast and North-east regions (near to research institutes)

Brazil: Universities, research institutes (e.g. EMBRAPA) Europe: Biotechnology compa-nies; Universities and re-search institutes.










SUB-SECTOR


permission process for biotechnology indus-tries.

A.8 – Biojetfuel

A.8.1 Design sustainable biojetfuel supply chains

3

Services (Consul-tancy) Research & Devel-opment Education

Production and use of sustainable biojetfuel to achieve GHG emissions reduction targets of aviation sector

2

Potential: Partnership with companies of aviation sector and biofuels sector for tech-nology transfer; part-nership with universities and institutes; offer consultancy; offer ca-pacity building Barriers: Brazilian economic crisis in aviation sector; lack of investments; low cost of fossil fuels

Southeast region (where the biggest airports are concen-trated)

Brazil: Biofuel and innovation companies; Sector associations (UBRABIO, ABEAR); airlines; universities and institutes. Europe: Consultants; Technology and engi-neering companies; universities and insti-tutes; Investors; Potential clients (Euro-pean airlines).

A.8.2 Implement biojetfuel produc-tion units

4

Industry (technology and machinery) Services (Consul-tancy, Logistics)

Production and use of sustainable biojetfuel to achieve GHG emissions reduction targets of aviation sector

1

Potential: Partnership with companies of aviation sector and biofuels sector for im-plement production plants Barriers: Brazilian economic crisis in aviation sector; lack of investments; low cost of fossil fuels; lack


Brazil: Biofuel produc-ers; investors; distribu-tors; airlines. Europe: Consultants; Technology and engi-neering companies; Investors; Potential clients (Euro-pean airlines).










SUB-SECTOR


of tested technology in the region

A.8.3 Quality analysis of biojetfuels for final users

4 Services (laborato-ry)

Test and approvals of biojetfuel from differ-ent production routes for commercial use

3

Potential: offer labora-tory analysis and certifi-cation of biojetfuels; Offer laboratory equip-ment for biojetfuel analysis; Partnership with local laboratories and inspec-tion companies Barriers: Low demand in short/medium term; very specific business (few clients)


Brazil: Biofuel analysis laboratories; Certification bodies; Governmental agencies (ANP) Institutes (TECPAR, EMBRAPA). Europe: Laboratories; Accreditation and certi-fication bodies; Lab equipment and inputs providers; Research institutes.

A.9 Biorefineries

A.9.1 Analysis of biomass for biorefineries

3 Services (laborato-ry, consultancy)

Technology under development: Multi-products from biomass

3

Potential: offer labora-tory analysis and stud-ies for many types of biomass (chemical studies and metabolic profile); Offer laboratory equip-ment and inputs for biomass analysis; Partnership with local laboratories and re-search institutes Barriers:

Southeast and Mid-east regions

Brazil: Biomass analy-sis laboratories; Associations and pri-vate companies (e.g. ABBI); Institutes and Universi-ties (e.g. SENAI, TECPAR, EMBRAPA, UNICAMP, UFMG). Europe: Laboratories; Lab equipment and inputs providers;










SUB-SECTOR


Low demand in short/medium term; very specific business (few clients); adaptation to many types of tropical bio-mass.

Research institutes.

A.9.1 Capacity building in biorefineries technologies

4

Services (Consul-tancy) Education

Technology under development: Multi-products from biomass

2

Potential: offer courses and consultancy in technologies for biorefineries (focus on sugar cane and wood as feedstock); Partnership with univer-sities and industry associations for capaci-ty building; Partnership with indus-try or institutes for implementation of demo plants. Barriers: Language, adaptation to local context and types of tropical biomass.

Southeast and Mid-east regions

Brazil: Biotechnology Industry association (e.g. ABBI); Institutes and Universi-ties (e.g. TECPAR, EMBRAPA, UNICAMP, UFMG). Europe: Consultants Universities Research institutes Biotechnology compa-nies



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http://www2.aneel.gov.br/

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:140:0016:0062:EN:PDF

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:140:0016:0062:EN:PDF

http://www.eubia.org/index.php/about-biomass/conversion-routes

http://www.iec.ch/smartgrid/background/explained.htm

http://www.acobrasil.org.br/site/portugues/sustentabilidade/relatorio.asp

http://www1.eere.energy.gov/biomass/pdfs/algal_biofuels_roadmap.pdf



A n n e x 1

s. attached Excel file “Annex 1 List of Contacts Brazil - Biomass for Energy rev_02.xlsx”

A n n e x 2

s. attached Excel file “Annex 1 List of Contacts Europe - Biomass for Energy rev_2.xlsx”

mapping report part 6 renewable energy from...

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