brazilian coal industry overview

8/6/2019 Brazilian Coal Industry Overview

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Associao Brasileira do Carvo Mineral

Porto Alegre - 16 September 2009

Brazilian Coal IndustryOverview

Fernando Luiz Zancan

Associao Brasileira do Carvo Mineral - ABCM


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Associao Brasileira do Carvo MineralBRAZILIAN COAL INDUSTRY

Resources: 31,7 billion ton (90% RS)

Production - ROM (2008): 14,8 million ton;

64 % SC

Saleable Coal 6,5 million ton - 51 % RS

Companies: 15 PR (1) SC (11) RS (3)

Number of Employees (2008): 5.749

Market Share (2008): 83 % Power Generation

Revenues (2008): U$ 390 million


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What about coal resources ?

Have we coal innortheast ofBrazil?

Two decadeswithout geologicsurvey

Incomplete geologicsurvey


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Source: Informative of Coal Industry DNPM / 2000

UF Jazida Recursos (106t) %

Paran Cambu 44 0,14

Sapopema 45 0,14

89 0,28

Santa Catarina Barro Branco 1.045 3,29

Bonito 1.601 5,04

Pr-Bonito 414 1,303.060 9,64

Rio Grande do Sul Candiota 12.275 38,67

Leo 2.439 7,68

Charqueadas 2.993 9,43

Iru/Capan 2.688 8,47

Murungava 3.128 9,86

Santa Terezinha/Torres 5.068 15,9728.591 90,08

Total (PR, SC e RS) 31.740 100,00

Candiota

PR

SC

RS

Barro BrancoBonito

Pr-Bonito

Iru / Capan

Leo

Charqueadas

Murungava

Santa Terezinha

CambuSapopema

Mining Areas

BRAZILIAN COAL RESOURCES


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REMPLACProgram Ministry ofMarine andBrazilianGeologic

Service

Geological Survey for Coal


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Candiota Mine - CRM


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Associao Brasileira do Carvo Mineral MINING RECLAMATION

Copelmi Minerao


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Underground Mining - SC


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Fonte: MME - 2006

Oil38,4%

Natural Gas9,3%

Coal6,4%

Uranium1,2%

Wood and Biomass13,1%

Sugar Cane

13,9%

Other renewable2,7%

Renewable

Non Renewable

Brazil0

20

40

60

80

100

World

14

86

4555

%

OCDE 20037,1%

BRAZILIAN ENERGY MATRIX


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BRAZILIAN ELECTRIC POWER MATRIX

World: 2003

Brazil: 2005

Natural

Gas4,1% Oil2,8%Nuclear2,2%

Hydro85,4%

Biomass

3,9%

Coal39,9%

Oil6,9%

Natural Gas19,3%

Biomass0,8%

Nuclear15,7%

Hydro16,3%

OtherRenewables

1,1%

0

20

40

60

80

100

Bras il (2005) Mundo (2003)

10,7

82,289,3

17,8

Non Renewable

Renewable

Source : MME

Coal : 1,6 %


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0

100

200

300

400

500

1970 1980 1990 2000 2010 2020 2030

,

Cenrio A

Cenrio B1

Cenrio C

Cenrio B2

309,3

356,5

402,8

474,5

59,1

million toe

Energy Grow1970 2005 2,9% ao ano1980 2005 2,3% ao ano

(2005-2030)A B1 B2 C4,3% 3,7% 3,1% 2,5%

Energy Consumption

165,0 (2005)

Source : MME

2,87 X

1,87 X


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MATRIZ DE OFERTA DE ENERGIA (%)

28,0

5,5

13,8

38,7

9,4

15,5

6,96,3 3,0

1,2

13,514,8

13,0 18,5

2,99,1

0%

20%

40%

60%

80%

100%

2005 2030

PETRLEO

GS NATURAL

CARVO MINERAL

HIDRULICA

LENHA&C.VEGETAL

PRODUTOS DA CANA

NUCLEAR

OUTRAS RENOVVEIS(4,3 H-BIO&BIODIESEL)

219 milhes tep e 44,5% renovveis 557 milhes tep e 46,6% renovveis

Energy Offer (%)

Source :MME

Coal


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Total (MW):

Renewable energy:

101 mil

84,0 %

143 mil

83,2 %

221 mil

83,1 %

83,9%80,8%

76,1%

0,1%

1,3%

2,9%

0,0%

1,1%4,1%

2,3% 2,6% 3,3%1,6% 1,9%

2,7%

9,9% 10,1%9,3%

2,3% 2,3% 1,5%

70%

75%

80%

85%

90%

95%

100%

2005 2015 2030

Derivados doPetrleo

Gs Natural

Carvo

Nuclear

Elica e Outros

Biomassa

Hidrulica

ELETRIC MATRIX

Source: MME

Carvo = 3,69 X


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Growth of Capacity HydroPower X Water Storage (reservoir)

Shows more thermal power generation operating in base load

Source: ONS, ANEEL

Capacidade de Armazenamento(Usinas Representando 75% do Armazenamento Total)

0

50

100

150

200

250

300

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

Armazenamentoem

[GWms]

Potncia Hidrulica Instalada

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

[MW]


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Decrease of the Reservoirs

Source : ONS

Hydro : old = 0,51 Km2/MWnew = 0,06 Km2/MW


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Brazilian HydrotermicElectric System

Coal is not in base load, low CO2 for the integrated electricsystem for the total energy production.

Coal is flexible, can be stored and maximize the electric

system.At this moment, there is a market to export electricity to

Uruguai and Argentina - Coal Power is helping.

Brazil is so dependent from hydropower, climate changeeffects can change the rain regime and cause problems tothe security of electricity supply. Back up fossil might be

important in the future, and coal can play a important role.


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Brazilian Coal Power Projects

PARAN

Figueira (repotenciao) 127 MW (CFBC)

SANTA CATARINA

USITESC 440 MW (CFBC)

RIO GRANDE DO SUL Candiota III (CGTEE) 350 MW (PC)

Jacu 357 MW (PC)

Seival 500 MW (PC)

CTSUL 650 MW (PC)

Seival I (Uruguai) (Tractebel) 340 MW (PC)

Seival II (MPX) 600 MW (PC) 3.364 MW

Imported Coal : 1.080 MW (PC)


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Climate ChangeBrazilian Coal Industry View

We need:

to develop and adapt technologies CCTs and CCSsuitable for local conditions. It needs international help.

Capacity building, Clean Coal Research Center andnetworks for R,D&D

The fossil Industry is doing its voluntary contribution andlooking ahead with actions:

- Coal and Oil network to develop technology forCarbon Capture and Storage is being started.

- To create the awareness CCS regulation in Brazil ;

- International and Brazilian Conferences on CCS andClimate Change

- R&D Centers creation for : CCTs and CO2storage


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Coal Mining GHG Mitigation & CH4- CDM project


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Coal Mining GHGMitigation & CH4

Copelmi Minerao/RS


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Brazilian Emissions andOCDE Emissions

Source: Economia e Energia - e&e Balano de Carbono, OCDE`- Carlos Alvin Feu

0

0,1

0,2

0,3

0,4

0,5

0,6

0,7

1970 1980 1990 2000 2005 20015 2030

tCO2

/Mwh

Brasil Mundo Cenrio Alternativo Mundo Alto Crescimento

Brazil 4 timesless than the bestof the world

2015


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Develop technologies for coal mining andutilization in a sustainable way CCS

Add value to coal R&D for high value productsincluding CTL to hydrogen

Optimized all process related to the coal economicchain

Capacity Building for all the technologies

Manage the R&D + I resources CentralKnowledge Management

Increase partnership: CPRM, CETEM, Petrobras,Eletrobras, private companies, universities

network

RD&I - Goals


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Coal and sustainability

Centro Tecnolgico de Carvo Limpo CTCLInvestiment in R&D+I for a sustainability industry -Investiment (2009/2011) U$ 3,,5 milion

SATC- Cricima/SC

E Effi i


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Energy Efficiency Green Building

PROCEL :CooperationSATC/ELETROBRASJune/09

- The first five green

buildings in Brasil


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CCS in Brazil

CO2 Storage ResearchCenter -Petrobrs/PUC/RS

IBAMA IN 07/09


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UTEs de R$

31,85/MWh

a

R$ 111,41/MWh

???Fonte: Dcio Michellis Junior

Change of Competitiviness

Overprice

IBAMA -IN 07/09 Compensation of CO2


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Associao Brasileira do Carvo MineralKEY POINTS

To increase the use of the Brazilian coals itis necessary to address the technologyissues regarding the use of low grade coals

for conversion into clean fuels.

Geologic survey, mining technologies, coalcharacterization and utilization,

environmental technologies and capacitybuilding for all the economic chain, shouldbe done.


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Associao Brasileira do Carvo MineralKEY POINTS

The need of a new coal industry will leadus to an integrated view ofclimatechangeless technologies.

The integrated view can maximize theutilization of the Brazilian Coal Resourcesand bring sustainability to the coal industry

in long term.

But this future will only happen if we havea fair coal policy.


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brazilian coal industry overview

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