A Brazilian Perspective A Brazilian Perspective on Bioenergy Issues on Bioenergy Issues

“Future of Forest Bioenergy”

Stockholm, 2007

Prof. Donato ArandaFederal Univ. Rio de Janeiro

1925: First experiments with ethanol/gasoline blends 1975: Ethanol program started after the 1st oil crisis 1989: Leaded Gasoline forbiden. 1993: E-20 to E-25 mandatory in all the country (33,000

gas stations) 2003: Flex Fuel engines 2006: 80% of new vehicles are Flex (2.5 million/year) 615 million ton of CO2 avoided emissions, so far

Ethanol Program in BrazilEthanol Program in Brazil

Sugar Cane Output/Input Energy ~ 8.2*Sugar Cane Output/Input Energy ~ 8.2*

Ethanol production in 2006: 16 billion liters

*Goldenberg, J.L.C Renewable Energies, Island Press, 1993

Ethanol Plants Ethanol Plants

313 Ethanol Plants

1 million employees

60,000 agric. producers

5 million ha (0.6 % of Br. area)

89 New plants are being contructed

Raw Material Production / ha (kg)

Quantity of Product / liter

of EthanolQuantity of Ethanol / ha

SUGAR CANE 85,000 12 kg 7,080 liter

CORN 10,000 2.8 kg 3,570 liter

Source: Brazilian Agricultural Ministry

Physical ProductivityPhysical Productivity

Sugar Cane EnergySugar Cane Energy

1 mton of Sugar Cane:1.7 103 kcal ~ 1.2 barrel of petroleum

Sugar cane bagasse is producing ~ 2,500 MW

Breakthrough: ethanol from bagasse and other residual biomass

Ethanol/Biodiesel IntegrationEthanol/Biodiesel Integration

Barralcool (Mato Grosso State)

Produces:100,000 mt/year of Ethanol50,000 mt/year of Biodiesel

Biodiesel ProgramBiodiesel Program

B2 mandatory at Jan/2008 (850,000 ton/year) B5 mandatory at Jan/2010 (2013, originaly)

Now: 10 biodiesel plants working (500,000 ton/year) 2,000 gas stations providing B2 Some transportation companies using B30 Projects: More than 100 new biodiesel plants

LOW FEDERAL TAXES FOR SOCIAL PROJECTS AND POOR LOW FEDERAL TAXES FOR SOCIAL PROJECTS AND POOR REGIONSREGIONS

Soybean,Soybean,Tallow,Tallow,CottonCotton

PalmPalmCastorCastor

SunflowerSunflower

JatrophaJatropha

CanolaCanola

BabassuBabassu

PeanutPeanut

Soybean Biodiesel (Output/input energy ~ 3)*Soybean Biodiesel (Output/input energy ~ 3)*

* NREL (USA) http://www.nrel.gov/docs/legosti/fy98/24089.pdf

Jatropha curcas BiodieselJatropha curcas Biodiesel

Output/Input Energy ~ 5- 6*

*Ref: Ouedraogo, 1991

Palm Oil BiodieselPalm Oil Biodiesel

Output/Input Energy ~ 8*Output/Input Energy ~ 8*

*Ref: Lor, E.E.S. et al, World Bioenergy http://www.svebio.se/attachments/33/295.pdf

11stst Biodiesel Plant – Heterogeneous Biodiesel Plant – Heterogeneous Catalyst/Residual FeedstockCatalyst/Residual Feedstock

(Crude Palm Fatty Acids) (Crude Palm Fatty Acids)

Patent: D. A. G. Aranda et al; PI0301103-8, 2003. D. A. G. Aranda et al, WO2004096962, 2004.

Operating Costs in a Conventional Operating Costs in a Conventional Transesterification Biodiesel PlantTransesterification Biodiesel Plant

Size Ton/year 10,000 20,000 50,000 100,000

Chemicals ¢/L 5 5 4 4

Energy ¢/L 2 1 1 0.7

Oper.Costs ¢/L 7 6 5 4.7

In a 100,000 t/year, it means US$ 5.3 Million/year !!Chemicals: US$ 4.5 Million/year

Highly Acid Feedstocks: Loss in Refining

Operating Costs: Hydroesterification vs Operating Costs: Hydroesterification vs Transesterification (50,000 mton/year)Transesterification (50,000 mton/year)

Transesterification Hydrolysis + Esterification

Chemicals (¢/L) 4 1

Energy (¢/L) 1 2

Oper.Costs (¢/L) 5 3

If biodiesel plant is integrated with an ethanol plant, operatingcosts will be less than 2 ¢/L.

No acidity limits in the feedstocks

CONCLUSIONSCONCLUSIONS

Brazil is open to share experiences in biofuels and offers good opportunity for international colaborations and investments in this field.

Both ethanol and biodiesel production will significantly increase in the next years. There’s agricultural land to support this increasing.

Integration between ethanol and biodiesel plants is strongly competitive.

Biodiesel process is being adapted to tropical feedstcoks (larger acidity) with higher yields and lower operating costs.

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Biodiesel plant 100,000 t/year, oil costs: US$ 250/t and Biodiesel plant 100,000 t/year, oil costs: US$ 250/t and Biodiesel sold at US$ 0.60/L (Biodiesel sold at US$ 0.60/L (No incentive scenarioNo incentive scenario))

EBITDA e EBIT

39,4

23,4

39,4 39,4 39,4 39,4 39,4 38,9 38,9 38,9

23,8

37,4 37,4 37,4 37,4 37,4 37,4 37,4 37,4 37,4

8,0

13,0

18,0

23,0

28,0

33,0

38,0

43,0

48,0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

R$

mi

EBITIDA EBIT

EBITDA e EBIT

42,6

25,4

42,6 42,6 42,6 42,6 42,6 42,1 42,1 42,1

25,9

40,6 40,6 40,6 40,6 40,6 40,6 40,6 40,6 40,6

8,0

13,0

18,0

23,0

28,0

33,0

38,0

43,0

48,0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

R$

mi

EBITIDA EBIT

EBITDA e EBIT

31,6

18,5

31,6 31,6 31,6 31,6 31,6 31,1 31,1 31,1

19,0

29,6 29,6 29,6 29,6 29,6 29,6 29,6 29,6 29,6

8,0

13,0

18,0

23,0

28,0

33,0

38,0

43,0

48,0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

R$

mi

EBITIDA EBIT

Gross Margin: 30.8%

Gross Margin: 24.1 % Gross Margin: 33.3 %

a) Regular Transesterification

b) Hydroesterification

c) Hydroesterification integrated withEthanol plant