industries perspectives on innovation and impact …industries perspectives on innovation and impact...
TRANSCRIPT
Industries Perspectives on
Innovation and Impact of Biofuels
and Biorenewables
FAPESP & BE-BASIC WORKSHOP ON IMPACTS OF BIOFUELS
November 25th, 2010
Luiz Fernando Amaral
Environmental Advisor
Brazilian Sugarcane Industry Association
The Brazilian Sugarcane Industry Association (UNICA) is the
leading sugarcane industry association in Brazil. Its more
than 120 member companies, voluntarily engaged,
represent over 50% of the ethanol and 60% of the sugar
produced in Brazil.
UNICA has around 50 staff and its expertise covers key areas
including the environment, energy, technology, international
trade, corporate social responsibility, sustainability,
regulation, economics and communications
It has offices in five locations: São Paulo (headquarters),
Ribeirão Preto (in the heart of the sugarcane producing
region), Brasília (Brazilian capital), Washington, and
Brussels
ABOUT UNICA
PERSPECTIVES:
MARKET AND POLICIES
TECHNOLOGIES
SUSTAINABILITY
PERSPECTIVES:
MARKET AND POLICIES
TECHNOLOGIES
SUSTAINABILITY
Petroleum and derivatives
37,9%
Sugarcane
18,1%Hydroelectricity
15,2%
Wood and other biomass
10,1%
Natural Gas8,8%
Coal4,8%
Other renewable sources
3,8% Uranium1,4%
BRAZILIAN ENERGY MATRIX INPUT (2009)
Source: BEN (2010). Elaboration: UNICA
Energy Supply Structure
Strategical importance of the sector
ESTIMATED AUTOMOBILE
AND LIGHT VEHICLE FLEET – OTTO CYCLE
Flex fleet/ total
Source: ANFAVEA e UNICA. Elaboration: UNICA. Note: for the projection of ethanol consumption by the flex-fleet, the presently observed ratio
of 60% to 70% of flex vehicle fueling with ethanol was considered.
49%
Fuel efficiency in FFV
Anhydrous ethanol: evolution of the prices received by producers
0,30
0,80
1,30
1,80
2,30
2,80
3,30
jan
/76
jan
/77
jan
/78
jan
/79
jan
/80
jan
/81
jan
/82
jan
/83
jan
/84
jan
/85
jan
/86
jan
/87
jan
/88
jan
/89
jan
/90
jan
/91
jan
/92
jan
/93
jan
/94
jan
/95
jan
/96
jan
/97
jan
/98
jan
/99
jan
/00
jan
/01
jan
/02
jan
/03
jan
/04
jan
/05
jan
/06
jan
/07
jan
/08
jan
/09
jan
/10
R$
/lo
f a
nh
yd
rou
s e
tha
no
l(a
ctu
al va
lue
s o
n A
pril/1
0)
Source: UNICA. Note: values deflated to April/2010 using the IGP-DI.
As a reflection of efficiency gains, current
ethanol prices are a little over 30% of the
observed price during the beginning of the
Proálcool program
INDUSTRY COMPETITIVENESS AND OUTLOOK FOR EXPANSION
Logistics
Productivity
Technological breakthroughs
BIOELECTRICITY USE
Brazilian potential to generate bioelectricity
Note: 1 t of cane produces 250 kg of bagasse and 204 of straw and points, 1 t of cane (bagasse + straw) generates 199,9 KWh for export, Lower Calorific
Value (LCV) of straw = 1,7 LCV of bagasse, capacity factor = 0,5 (Koblitz), using a 65 bar boiler. In 2008/09, it should be considered a use of 75% of
available bagasse and 5% of available straw and, from 2015/16, a use of 75% of available bagasse and 70% of available straw. Up to 2010, it was
considered the energy traded at Energy Auctions in a Regulated Contracting Environment, for 2011 an increment of 1600 MW was considered, and by 2012
an increment of 2000 MW per year. Source: UNICA, Cogen, Koblitz (2009).
2 ItaipusLargest
hydroelectricity
power plant
Regulation
New structures for project finance
Market research
0
10.000
20.000
30.000
40.000
50.000
60.000
70.000
80.000
90.000
100.000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009*
Millio
n li
ters
Exports
8.2% 8% 7.2%7.7%
9.4% 10.3%12.1%
10.1%
10.3%7.8%
Source: F.O.Licht, Secex, USITC, European Comission, LMC. Elaboration: UNICA. Note: preliminary results
THE PARTICIPATION OF GLOBAL ETHANOL EXPORTS
IN WORLD ETHANOL PRODUCTION
f(policies)
Biofuel policies
Trade policies
Specification: testing methods and standardization
PERSPECTIVES:
MARKET AND POLICIES
TECHNOLOGIES
SUSTAINABILITY
SUGARCANE INDUSTRY: NEW PRODUCTS AND NEW USES
Bio-hydrocarbons (cane diesel, jet fuel)
New products New uses
Sugar
Ethanol
Bioelectricity
Bio-ethylene
Bio-hydrocarbons
Bus
Aircrafts
Motorcycles
Alcohol chemistry
(bio-plastics)
Elaboration: UNICA.
A TYPICAL SUGARCANE INDUSTRIAL PLANT IN BRAZIL: SUGAR,
BIOELETRICITY AND BIOENERGY (ETHANOL AND MORE TO COME…)
Bagasse
Sugar cane field
Distillery Sugar plantEthanol storage tanks
Cellulose
ethanol
Straw (tops & leaves)
Bio-
hydrocarbon
fuels
Technological research
ETHANOLGASOLINE
March 2009: First Flex Fuel Motorcycle in the
World Honda CG Titan 150 Mix
So far 3 flex fuel models. Other companies are
expected to launch similar versions soon !
New markets
Diesel Substitution
Ethanol with 5% ignition additive
São Paulo – 2 demo busses + 50
vehicles in 2011
Stockholm – over 400 vehicles
in operation
• Other possibilities:
• Stationary engines
• 100% ethanol engines
• bi-fuel engiens
PPPs models
Technological research
… AND IT IS NOT JUST FOR FUEL EITHER
Source: Braskem, Johnson & Johnson, The Coca-Cola Company, Tetra-Pak, and “The Graduate” (1967)
Sugarcane is now being used to replace fossil
fuel feedstocks in the petrochemical industry
Various companies have begun or will begin
to produce and market plastics from
sugarcane ethanol
Market conditions
GHG mitigation potentials
N. AmericaOceania &
PolynesiaAsia Africa
Latin America &
CaribbeanTotal
Suitable area
(M ha)7.3 1 34.3 27.4 50.4 120.4
Area needed for 20% of ethanol in world transportation (M ha) 37 - 47
Sources: Map - British Sugar, Area – Fischer, G., E. Teixeira, H. van Velthuizen “Land Use Dynamics and Sugarcane Production”, In P. Zuurbier
and J. van de Vooren, Sugarcane Ethanol: Contributions to climate change mitigation and the environment , Wageningen Academic publishers,
2008.
Sugarcane is
produced in more
than 100 countries
Global area needed for 20% of sugarcane ethanol in
transportation sector by 2020
Biofuel policies
Market conditions and bottlenecks
Agronomic conditions
Technical cooperation
PERSPECTIVES:
MARKET AND POLICIES
TECHNOLOGIES
SUSTAINABILITY
SOCIAL AND ENVIRONMENTAL RESPONSIBILITY
National agreement of voluntary participation and continuous
improvement, which prioritize better work practices on
sugarcane by creating market instruments and which
recognize it as an example for other companies to adopt
Train and requalify 7,000 workers and community
members per year for jobs in sugar mills and ethanol
plants and to work in other sectors, as a response to
the process of mechanizing the sugarcane harvest to
eliminate burning
Requalification Program for Sugarcane
Rural Workers
The Green Protocol between UNICA and the São Paulo state government is
a voluntary agreement to end the use of fire in sugarcane harvesting and to
protect riparian areas. Currently, in the state, 55% of the cane is harvested
mechanically and 25% of all the riparian areas are protected by the sector.
UNICA’s GRI
Sustainability
Report
The first agribusiness association in the world to publish a
sustainability report following the Global Reporting Initiative
Framework. The 2010 one is to be published.Analytical studies
Case studies
SUGARCANE HARVESTED WITHOUT BURNING IN SP
Source: *Forecasted. Agroenvironmental Protocol of São Paulo State.
Trash collection
New agronomic practices
Pests
87% of domestic
sugarcane harvest
Sugarcane area destined for
ethanol production occupies
1.5% of Brazilian arable lands
Note: Arable land (Censo IBGE 2006) 1) Total permanent and temporary crops (Censo IBGE 2006); Data for suybean, corn and sugarcane (IBGE 2008). 2)
Pastures (Censo IBGE 2006 3) Protected areas and native vegetation (Gerd Spavorek 2009, not published) APP = Permanent Preservation Area; UC =
Conservation Units and TI = Indigenous lands 4) Available area = arable land – Crop – Pastures. Source: ICONE and UNICA. Elaboration: UNICA.
Millions of hectares
% Brazil% arable
landBrazil 851.4
Total arable land 329.9
1. Total crop land 59.8 7.0% 18.1%
Soybean 21.6 2.5% 6.4%
Corn 14.4 1.7% 4.4%
Sugarcane 8.1 0.9% 2.5%
Sugarcane for ethanol 4.8 0.6% 1.5%
2. Pastures 158.7 18.6% 48.1%
3. Protected areas and native vegetation 495.6 58.2% -
4. Available area 137.2 16.1% -
OUTLOOK FOR EXPANSION
Remote sensing
Land use models
SUGARGANE MONITORING BY REMOTE
SENSING: CANASAT
CANASAT http://www.dsr.inpe.br/mapdsr/
Remote sensing
f = Forecasted sugarcane area
Sources: INPE (deforestation rates) and IBGE (sugarcane area).
Prepared by UNICA.
SUGARCANE AREA AND ANNUAL DEFORESTATION RATE IN THE
LEGAL AMAZON
Empirical data shows no
correlation between ethanol
expansion and deforestation.
Testing on predicted model results
Update input data on models
Public policies analyses
MANUAL FOR WATER CONSERVATION AND REUSE
IN THE SUGARCANE INDUSTRY
Technical cooperation
Awareness
Benchmark study on the issue
CRAMERCramer
Commission
EU DIRECTIVE
Low CVP Fuels
MULTISTAKEHOLDER INITIATIVES
NATIONAL INITIATIVES
LCFS
Low Carbon Fuel Standard
Renewable Transport Fuel Obligation
RTFO
G8+5
Task 39Liquid Biofuels from Biomass
INTERNATIONAL BODIES’
INITIATIVES
Stockholm Environment
Institute
SEI
RTRS
Roundtable on Responsible Soy
RSPORoundtable on
Sustainable Palm Oil
BSIBetter Sugarcane
Initiative
PBCB
Brazilian Biofuels Certification Program
EquatorPrinciples
IBSistema de
Verificação. da Atividade
Agropecuária
CENEuropean
Committee for Standardization
PC 248
Scorecard
Renewable Fuel Standard
RFSISCC
Biofuel Quota Law-Ordinance for sustainability
requirements
GBEP
Global Bioenergy Partnership
RSB
Round Table on Sustainable
Biofuels
Green EnergyRainforest
Rainforest Alliance
Sugarcane Discussion Group
SDG
BEFSCI
Bioenergy and Food Security Criteria and Indicators
Prepared by UNICA. VERSION 5(August2010)
GLOBALNATIONAL
SUSTAINABILITY INITIATIVES FOR BIOFUELS:A “UNIVERSE” IN CONSTANT EXPANSION
SUSTAINABLE BIOFUELS
REGIONAL INITIATIVES
VSEVerified
Sustainable Ethanol
FAO OECD IDB IFCIEA UNEP ISO
Green Ethanol
Sugarcane Zoning
National Commitment
National Commitment for the Improvement of
Labor Conditions in Sugarcane
CSBPCouncil on Sustainable
Biomass Production
CBD
Substa-CBD
GMP manual
Sugarcane Good Management
Practices Manual
BNS
Biomass Nippon Strategy
EthaSTAR
Policy impacts
Market implications
Analysis of delivered results
Models and objectives
“Certification theory”
CONCLUSIONS (1):
example of research areas and studies
1) Market development and regional integration: strategies and
mechanisms for sugarcane energy become an strategically source of
energy in developing countries;
2) Greenhouse gas emissions: regionalized carbon stocks below ground
for several crops; better measurement of real values for GHG flows in
production;
3) Environment: benchmarking study on how to better access the water
issue in bioenergy; better use of residues as agricultural inputs; land
use dynamics;
4) Urban environment: air pollution in urban areas;
5) Technological innovation: second generation; biofuels in air transport;
6) New applications: substitution of diesel oil (ethanol, butanol, cane
diesel etc)
7) Agricultural practices and productivity: better varieties; new
agricultural management techniques (specially for non burned areas);
CONCLUSIONS
suggestions for research agenda
1. First step has being achieved: broad identification of the agenda (FAPESP
book) with contribution private sector.
2. Given limited resources, definition of priorities is essential.
3. Elaboration of a matrix of proposed items taking into account: (A) expected
impacts, (B) urgency of results and (C) costs.
4. Define short, medium and long term priorities.
5. Targets should be established, with deliverables clearly stated and follow
up procedures created.
6. Pulverization of low impact projects must be avoided. Focus on few
multidisciplinary initiatives to concentrate and maximize research’s results.
7. To expand cooperation and avoid duplication of work.
8. To publish in English in peer reviewed magazines. It is especially true for
primary research and data collection.
