BiofuelsBiofuels in in BrazilBrazil

“TAPPI - InternationalConference on Renewable

Energy”Atlanta, 2007

Prof. Donato ArandaFederal Univ. Rio de Janeiro

EnergyEnergy MixMix

1925: First experiments with ethanol/gasoline blends1975: Ethanol program started after the 1st oil crisis1989: Leaded Gasoline forbiden.1993: E-20 to E-25 mandatory in all the country (33,000 gas stations)2003: Flex Fuel engines2006: 80% of new vehicles are Flex (2.5 million/year)615 million ton of CO2 avoided emissions, so far

EthanolEthanol ProgramProgram in in BrazilBrazil

Sugar Sugar CaneCane Output/Input Output/Input EnergyEnergy ~ 8.2*~ 8.2*

Ethanol production in 2006: 16 billion liters

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

EthanolEthanol PlantsPlants

313 Ethanol Plants

1 million employees

60,000 agric. producers

5 million ha (0.6 % of Br. area)

89 New plants are beingcontructed

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

PhysicalPhysical ProductivityProductivity

0 1 2 3 4 5 6 7 8

T rig o

M ilh o (E U A )

B e te rra b a

C a n a -d e -A ç ú c a r (B ra s il)

Source: F.O.Licht (in “New trends to the ethanol supply chain in Brazil”, Simoes, R.B., Master Thesis, Universiteit Van Tilburg, Holanda, Jul-2006)

Wheat

Corn

Sugar Beet

Sugar Cane(Brazil)

Ethanol Energetic Balance

Output/Input Energy

Sugar Sugar CaneCane EnergyEnergy1 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 otherresidual biomass

EthanolEthanol//BiodieselBiodiesel IntegrationIntegration

Barralcool (Mato Grosso State)

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

BiodieselBiodiesel ProgramProgramB2 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 B2Some transportation companies using B30Projects: More than 100 new biodiesel plants

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

SoybeanSoybean,,TallowTallow,,CottonCotton

PalmPalmCastorCastor

SunflowerSunflower

JatrophaJatropha

CanolaCanola

BabassuBabassu

PeanutPeanut

SoybeanSoybean BiodieselBiodiesel (Output/input (Output/input energyenergy ~ 3)*~ 3)*

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

JatrophaJatropha curcascurcas BiodieselBiodiesel

Output/Input Energy ~ 5- 6*

*Ref: Ouedraogo, 1991

PalmPalm OilOil BiodieselBiodiesel

Output/Input Output/Input EnergyEnergy ~ 8*~ 8*

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

11stst BiodieselBiodiesel PlantPlant –– HeterogeneousHeterogeneousCatalystCatalyst/Residual /Residual FeedstockFeedstock

((CrudeCrude PalmPalm FattyFatty AcidsAcids))

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

OperatingOperating CostsCosts in a in a ConventionalConventionalTransesterificationTransesterification BiodieselBiodiesel PlantPlant

4.7567¢/LOper.Costs0.7112¢/LEnergy4455¢/LChemicals

100,00050,00020,00010,000Ton/yearSize

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

OperatingOperating CostsCosts: : HydroesterificationHydroesterification vsvsTransesterificationTransesterification (50,000 (50,000 mtonmton//yearyear))

35Oper.Costs (¢/L)21Energy (¢/L)14Chemicals (¢/L)

Hydrolysis + Esterification

Transesterification

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

No acidity limits in the feedstocks

CONCLUSIONSCONCLUSIONSBrazil is open to share experiences in biofuelsand offers good opportunity for internationalcolaborations and investments in this field.Both ethanol and biodiesel production willsignificantly increase in the next years. There’s agricultural land to support this increasing.Integration between ethanol and biodiesel plantsis strongly competitive.Biodiesel process is being adapted to tropical feedstcoks (larger acidity) with higher yields andlower operating costs.

ThankThank youyou !!

www.greentecwww.greentec--ufrj.comufrj.com

“ God causes all things to work together for good to those who love Him” ( Rm 8,28)

BiodieselBiodiesel plantplant 100,000 t/100,000 t/yearyear, , oiloil costscosts: US$ 250/t : US$ 250/t andandBiodieselBiodiesel soldsold atat US$ 0.60/L (US$ 0.60/L (No incentive No incentive scenarioscenario))

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