ALTERNATIVE FUELS Stage 6
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de la vi da era rr
ca
Stage 6 ALTERNATIVE FUELS
En la
de la vi da era rr
ca
INTRODUCTION Biofuels going on. 2010 was decisive Biofuels are going on. 2010 was essential in the introduction of bio ethanol and bio diesel in the engines of Argentineans. Two laws (the bio fuels law, passed in 2006, and bioethanol, 2008), these two substances are now introduced in the diesel and gasoline in Argentina, at the percentage of 7 and 5% per litter. This program gives benefits to the environment: according to a study by the National Institute of Agricultural Technology (INTA), the use of soy bio diesel saves around a 75% to 82% of the greenhouse gases emitted by grains produced in Argentina with the tillage system. “Argentina is a world leader in blending - the mix of fuels - to 7% in its domestic market and the projection of 10% bio diesel blends in January” said Jorge Hilbert, national program coordinator bio energy in the INTA. The bio ethanol production, according to the mandatory minimum has not been achieved, despite the 45 million litters that have been traded since July 2010. About bio diesel production, the capacity in Argentina is more than enough. In fact, the country is among the top five world producers. In the last years, companies from diverse areas of activities have invested in an industrial process able to convert soybean oil into bio fuel. A total of 19 manufacturing plants, of which 40% are Pym’s, are among the national production of bio diesel. The remaining 60% is divided among the major independent and oils companies that dont have their own raw material. Even if they are involved in exporting, Pymes supply the local market. So, biodiesel and bioethanol are still short-term solutions and cannot replace oil. These two oils are based on the use of food products, which explains the consequences: first, the risk of a possible increase in food prices, and the second, a risk to increase more and more the agricultural frontier, with negative environmental effects. Manufacturers are always searching more efficient products and better performance. “Among alternative crops in which we are researching, we found the jastropha. This is a plant that has a high production of oil and produces more than twice per hectare as soybean and grow where other crops can not do it, and don’t put competition with food, and is not harmful to the water and soil, “says Federico Pochat, manager of new projects in Patagonia Bioenergy. In fact, the seeds of this bush have a potential production of oil of 45% compared with 18% of soybeans. But must be harvested by hand and the industrial process is complicated. Hilbert doesn’t believe anymore in the development of flax pulp. But still leaves space to be surprised “at the end of the nineteenth century, cities were destroyed with the horses, was a real urban problem. And the car appeared.
En la
de la vi da era rr
ca
REPORT The Rising of Bio fuels in the World. The first engine worked with peanut oil and was designed in 1890. But the development of bio fuels, according to its current form, is very new. From the 70’s, Brazil was interested in this energy. So, today Brazilian engines use this fuel in its pure form, such as oil, because cars allow coexistence of different fuels. In developed countries, interest in this type of energy began to increase in the 90’s. In 2007, liquid biofuels provided energy equivalent to 20 million tons of oil that represents 1% of fuel used globally for road transport. In 2030, the projection indicates that biofuels could reach 10% of total fuel. This period seems to be better for biofuels, for the issues about climate change, oil shortages and higher cost means that more and more countries are interested in alternative energy. In Argentina, as other countries, the concerning about being more independent and safer about energy supply has pushed the government to launch in 2001, the national biofuels program. This program encourages the regular national incorporation of biofuels in engines. This year, the quota of ethanol could not be reached (due to insufficient production) as established by law 26,334 of 5%. However, the quota for biodiesel produced from soybeans, will rise to 7% by mid-year and 10% in early 2011. There are different types of biofuels. The first generation ones- and are the most widely used especially edible biomass products. Some examples of materials used to produce biodiesel are soybean oil (almost all domestic production), rapeseed oil (used in the European Union) and palm oil (as in the case of Colombia and Malaysia). Others are in gaseous form, such as biogas from fermentation. An economic opportunity for Argentina Around the world and regarding the important role of Argentina as a major exporter of soybean oil, the country is seen as the Mecca of biodiesel. This new product causes a need that, thanks to international demand, brings promises of a millionaire business. The soybean production costs are very low - and that is what still keeps their international competitiveness, despite farming. The country is known to have one of the agricultural production systems more efficient in the world: The huge expansion of direct seeding reduced significantly the use of
En la
de la vi da era rr
ca
agricultural machines and fossil fuel consumption. So, another resource becomes scares: water. In 2010, the final volume of the soybean crop reached the 54 million of tons and was the highest in history. Argentina is the third largest exporter of oilseeds and lead the supplying of products in the international market: oil and flour. In 2009-2010, has reached a historical area planted with grain, whith 18.5 million hectareas. Since 2007 Argentina has developed an industrial tool able to convert soybean oil into fuel. The territory has benefited from the presence and investment of big industrial groups oil (Louis Dreyfus, Glencore, Vincentian) and various Pymes. In total, there are 19 plants producing. And these companies should invest more to reach 500 million dollars since the beginning of the national quota. This year, biodiesel production reached 2 000 million. Two thirds are for export and about 700 million to the local market. The use of renewable energy can contribute to regional development, a give to rural land a new source of income. In fact, now, the biofuel industry (such as ethanol, biodiesel) has generated over 15,000 jobs, taking the direct and indirect jobs. The province of Santa Fe has the largest number of biodiesel plants. This is because the high concentration of grain mills in the area. With this growth, in 2015, total demand will be approximately 70,000 jobs, creating a booming sector, which will have a major impact on the PIB of Argentina. Far from put competition to oil Although bio diesel has almost the same energy value than diesel, is 100% biodegradable and is less toxic than table salt, won’t win to oil, because its cost is still too high. Today, the price of 1,000 litters of bio diesel for export is 1059.6, or $ 1,059 per litter. Value applied in the local market is 10% less: 0.95 cents The price of oil is about 55 U.S. cents per litter by 2010: this is a high value. In 1998, a barrel of oil was $ 10, less than 7 cents per litter. If the mandatory reductions didn’t exist, bio fuels would not be competitive with the prices of oil. The only way to achieve real competition between the two fuels - as happened in Brazil - is the production through intensive cultivation and low cost. Today, the reality is that we have 420 litters of oil per hectare of soybean, which means that the performance is low compared with sunflower (890 litters), rape (1,100 litters) or palm (5500 litters). Nevertheless, bio fuels have other limitations; as well as help reduce pollution by reducing CO2 emissions at the same point have the most problems. In fact, the use of glyph sate (a necessary tool for cultivation of GM soy) is in the center of many debates in the country, because in some areas there is a higher incidence of spontaneous abortions, birth defects and cancer. Soil erosion is also very controversial, and the pressure on natural
En la
de la vi da era rr
ca
flora caused for the expansion of cultivated areas. Although bio fuels have no direct responsibility, soybeans are grown essentially for the production of flour, this make the bio fuel production more attractive. In Brazil, the monoculture sugar cane was highly polluting, especially for groundwater and waterways. This put in risk the ecosystem known in the country. In Malaysia is estimated the 87% of deforestation from palm oil production. So, this sentence orang-utans to disappear around 2020. So, more generally, if producers spend their crops to meet energy needs rather than the food, the amount of food will decrease and increase hunger and nutritional deficiencies. For now, bio fuels cannot only be a complement resource to petroleum. The future of bio fuels Researchers around the world are searching for a solution generated from biomass of non-traditional crops inedible oilseeds such as jatropha (1590 liters of oil per hectare), camel or samphire. In Argentina, Jatropha, a bush with a toxic vegetable oil, but able to produce biodiesel, is a serious alternative. Among its advantages is doesn’t compete with food, has a low cost and grows in arid soil. Critics point that should be harvested by hand and do not ripen fruit in a particular season, but throughout the year, and that complicate logistics. However, local and foreign investors have looking for jatorpha. Another technique is about change of cellulose into fuel. For this purpose, is used wood waste, sawdust, perfolla, corn stover and switchgrass. Everything that could form the basis for the conversion of a enormous energy. In the future, when energy will be crucial, plants may be the main actors.
GRAPHIC TABLE Key data • $ 2120 million dollars is what allows the evolution of the activity of biofuels in Argentina. • $ 500 million dollars, that’s what companies must invest in the production of biofuels in the short period since the beginning of the national quota. • $ 1 300 billion, this is achieved this year, exports of biodiesel.
En la
de la vi da era rr
ca
• $ 700 million dollars is what is consumed domestically. • $ 120 million dollars is what generates the internal market the ethanol industry. Source: Argentina’s biofuel partnership
Biodiesel factories in Argentina and the province of Santa Fe.
En la
de la vi da era rr
ca
LEGAL FRAME • Resolution 554/2010, issued June 6, 2010, increased the share of 7% biodiesel. • Resolution 7 / 2010, to February 9, 2010, ratification of the agreement on the supply of biodiesel b5 • Resolution 6 / 2010 dated February 8, 2010, establishing specifications for biodiesel quality. • Resolution 3 / 10 published on February 1, 2010, correction of resolution 733/09. • Resolution 733/09, of October 20, 2009, minutes of ethanol supply in 2010. • Resolution 689/09, of September 24, 2009, determination of business and the volume of ethanol required fee. • Resolution 1295-1208, the official newsletter of November 18th 2008, specifications for the quality of ethanol.+ • Resolution 1294-1208, the official newsletter of November 18, 2008, the pricing of ethanol. • Resolution 1293-1208, the official newsletter of November 18, 2008, mechanism of selection of projects for ethanol quota. • Resolution 266/08 of 11 February 2008, registration of entities authorized to conduct audits in biofuel plants. • Law 26.334/08 promulgated on January 2, 2008, law for the promotion of ethanol. • Decree 562/2009, which regulates the law 26.190/2006 in renewable energy. • Regulation of the law, Decree 109/2007, dated February 13, 2007. • The biofuels law # 26093, promulgated on 12 May 2006. • Resolution 129/2001, the definition of biodiesel.
En la
de la vi da era rr
ca
INTERVIEWS Source “government”
Jorge Hilbert
National Coordinator of Bioenergy, National Institute of Agricultural Technology, INTA What is the national biofuels Program? The program consists in various bioenergy projects. One point is the crop for biofuel production. Another is focused to second-generation biofuels. The third is the development of strategic crops, began with studies of ‘jatropha’ specie and the adaptation of this wild plant. We have two projects with the European Union. One focuses on the transformation of cellulose into biofuels and the other is responsible for the analysis of the entire soy chain and its use for biodiesel production. Argentina has a huge capacity to produce these oils to produce biofuels. Today is the third largest exporter. What is the role of Argentina, around the world in the use of biofuels? Argentina leads from the melting point - the fuel mix - as have 7% of their domestic markets and plans to have 10% blend of biodiesel, starting in January. Our country has no fuel: this mixture is twofold: the environment, reducing emissions and a goal of energy security and improving the balance of payments between imports and exports. Can you imagine using biodiesel in its pure form? No, biofuels have a limited participation, and today we speak of a share of almost 2% in liquid transportation fuels around the world. Personally I consider surprising that such participation is more than 5%. So, I think a pure blend, no. Why soy cannot be an alternative to oil? Biodiesel is produced in intensive farming, with a very low cost to compete with oil costs.Today, the market for biodiesel is totally an artificial market with the help of governments. If mandatory reductions didn’t exist, biofuels can not compete with oil prices. There is one exception: bioethanol. is obtained from sugar cane with high production that comes from the tropics and subtropics. Plants have carbon 4, with high performance and energy balance between biomass production and highenergy consumption. Can exist a plant with a higher performance than soy? Where is the research in Argentina?
En la
de la vi da era rr
ca
First, we define the term second-generation biofuels. Some refer to non-traditional crops, which do not compete with food, like seaweed, but require big investments and costs for the moment, are enormous. Other second-generation is processing flax cellulose into liquid fuel. INTA has a research staff dedicated to the development of technological inputs to transform the cellulose and make it economically viable. These researches are slow, but in the world, large investments are made in their favour. Indeed, the conversion of any cellulose material into fuel gives an overview of possible sources of raw materials.
The Third sector
Claudio Molina
Executive director of association of biofuels Argentina What is the role of your association? Its main objective is to ensure that in Argentina, biofuel production is possible and what used to be profitable from the technical point of view could be in the economic, social and environmental. What is the importance of economic topic? Biofuels industry as a whole, taking the direct and indirect jobs, are providing over 15,000 jobs. The production of bioethanol derived from sugar cane, is a very intensive work. With a growth until 2015 is probably that the total demand of jobs will be around 70000 as it is a dynamic sector with a strong impact on the PIB of Argentina. Which is the real benefit of biofuels at the environment? No doubt, biofuels are the best option in the world today to supplement transportation fuels. In Argentina, our soy biodiesel is done with sustainable agriculture, with more than 70% to 80% with direct seeding. Soybean production is based on a radius of 300 km from the port of Rosario. This is a process of high technology. Therefore, we can say that what is behind our biodiesel is sustainable. Argentina could become another Brazil and make available to motorists pure biodiesel? Now, Argentina is the world’s biggest exporter of biodiesel. And have the opportunity to be the Brazil of biodiesel. In the case of bioethanol, the majority of future production will come from cereals. The possibility of using pure biofuels is more related to authorizations and approvals for manufacturers. In Brazil, the development of flex engines allows consumers to choose between gasoline and ethanol. By now, Argentina has approved flex engines. In terms of biodiesel, the use of pure
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biodiesel is not yet possible. Could use biodiesel in its pure form only in certain powerful and heavy engines, as in Germany, but this is not in a short or medium term. Is there a negative effect when edible soybean oil is used for energy and eating? Vegetable oils in general are food additives. Basic diet does not depend on the fat in it. The problem is much more difficult when it comes from corn, since it is a staple for meat production. However, the problem is overstated, as there are many interests that are against biofuels, in particular the oil exporters and food companies who see biofuels as a threat to the possible increase of its raw materials. The main thing is these countries should coordinate their policies in the long term; regulating the production of crops and foods derived from biofuels, so regular traffic. We cannot deprive us of biofuels.
Private sector
Eng. Federico Pochat
New project manager of Patagonia Bioenergy In what context was created Patagonia Bioenergy? What are your capital expenses? Where do you stand on the Argentine market for biofuels? Patagonia Bioenergy is a leading producer of biodiesel in the country and the world. Founded in 2007 by two Argentine companies, Cazenave y Asociados SA, which deals with agricultural activities and has over 40 years of experience, and Energy and Solutions, which sells gas and other petroleum fuels. Patagonia bioenergy has helped our country to become today the largest exporter of biodiesel. How much you process? Currently we have reached a manufacturing capacity of 250 000 tonnes per year. A program to double capacity by 2011 is in development. Is it easy to get raw materials? Argentina is the largest exporter of soybean oil in the world. Has very strong surplus, which means that there is not a problem getting raw materials. However, we must develop and improve alternative crops as Jatropha and Camelina. In what market you sell products?
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75% of our production is for export to the most demanding markets in the world (mainly Europe). Since 2010, we also supply the local market, making it possible to combine all the Argentine territory of diesel with 7% biodiesel. What is the future of biofuels? Could they replace oil? We face a new global paradigm for the use of biofuels, their integration into the global energy is irreversible. About the research in mitigation of climate change is a complement between fossil fuels and bioenergy. As fossil fuels have a hegemonic presence, and it’s expected that a gradual integration between these two fuels in order to provide countries with higher productivity, social protection and environmental sustainability. What technologies or materials Patagonia Bioenergy bet for the future? Patagonia bioenergy is currently the leader in the research of alternative crops in the national level. In this area, we proposed that our country must to have a vision of future in relation to these events; we also have our own crops in Formosa and Paraguay. Among alternative crops for which we focus research, special mention has the Jatropha. Is a plant that has a high production of oil and produces more than twice per hectare as soybean and grows where no other crop is possible, so there is no competition with food, and is not harmful to water and the ground. On the other hand, there is a kind of oilseed Camelina as rapeseed and mustard, with an annual cycle in winter, with better cold tolerance compared to other crops. Grown on marginal soils, not compete with food production. Why does the world continue to test the use of crops for biodiesel production?
Citizens
Juan Ignacio Egozcue Did you know that we integrate biofuels in the fuel in Argentina? I knew about the use of biofuels in gasoline. Sounds like a good idea, knowing that the regular fuel, petroleum is a nonrenewable source. Seems like a good idea as long as cars have no problem to travel. If is used for this purpose best as a renewable fuel for cars would be spectacular, but there are cars that do not work well, such as gas,GNC is a fuel, but it is not the most desirable .Always be the best gasoline or diesel, but to have a car with gas, I realized that this was lot the same. If we can make a fuel made with soy and does not affect the function of the car, it would be great.
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Would you be willing to pay a little more to make biofuels? Whether biofuels were a fuel that is not lost on the car engine, I would be willing to pay more money. Are you sensitive to environmental issues? I’m not the most attentive to the environment, but I am not a destroyer of the environment. For example, the papers, throw them away. I try to pay attention to everything, without thinking that is a particularly important role to play, because if we all think the same ... I do not know if I realize, but I know what it is and represents. Maybe going to happen once I’m dead, but you have to think about the future. Tomorrow, if all goes well, without being aware of things, everything will fall apart. For you, biofuels are a practical solution? Indeed, we all know the process of collecting oil. On the other hand, we know that wars have broken this resource. Hope that the oil no longer has much significance in the fuel, so it will not replace the plants, and will lose interest and there will be fewer wars. Would Would be good.
de la vi da era rr
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Stage 6 ALTERNATIVE FUELS
En la
de la vi da era rr
ca
INTRODUCTION Biofuels going on. 2010 was decisive Biofuels are going on. 2010 was essential in the introduction of bio ethanol and bio diesel in the engines of Argentineans. Two laws (the bio fuels law, passed in 2006, and bioethanol, 2008), these two substances are now introduced in the diesel and gasoline in Argentina, at the percentage of 7 and 5% per litter. This program gives benefits to the environment: according to a study by the National Institute of Agricultural Technology (INTA), the use of soy bio diesel saves around a 75% to 82% of the greenhouse gases emitted by grains produced in Argentina with the tillage system. “Argentina is a world leader in blending - the mix of fuels - to 7% in its domestic market and the projection of 10% bio diesel blends in January” said Jorge Hilbert, national program coordinator bio energy in the INTA. The bio ethanol production, according to the mandatory minimum has not been achieved, despite the 45 million litters that have been traded since July 2010. About bio diesel production, the capacity in Argentina is more than enough. In fact, the country is among the top five world producers. In the last years, companies from diverse areas of activities have invested in an industrial process able to convert soybean oil into bio fuel. A total of 19 manufacturing plants, of which 40% are Pym’s, are among the national production of bio diesel. The remaining 60% is divided among the major independent and oils companies that dont have their own raw material. Even if they are involved in exporting, Pymes supply the local market. So, biodiesel and bioethanol are still short-term solutions and cannot replace oil. These two oils are based on the use of food products, which explains the consequences: first, the risk of a possible increase in food prices, and the second, a risk to increase more and more the agricultural frontier, with negative environmental effects. Manufacturers are always searching more efficient products and better performance. “Among alternative crops in which we are researching, we found the jastropha. This is a plant that has a high production of oil and produces more than twice per hectare as soybean and grow where other crops can not do it, and don’t put competition with food, and is not harmful to the water and soil, “says Federico Pochat, manager of new projects in Patagonia Bioenergy. In fact, the seeds of this bush have a potential production of oil of 45% compared with 18% of soybeans. But must be harvested by hand and the industrial process is complicated. Hilbert doesn’t believe anymore in the development of flax pulp. But still leaves space to be surprised “at the end of the nineteenth century, cities were destroyed with the horses, was a real urban problem. And the car appeared.
En la
de la vi da era rr
ca
REPORT The Rising of Bio fuels in the World. The first engine worked with peanut oil and was designed in 1890. But the development of bio fuels, according to its current form, is very new. From the 70’s, Brazil was interested in this energy. So, today Brazilian engines use this fuel in its pure form, such as oil, because cars allow coexistence of different fuels. In developed countries, interest in this type of energy began to increase in the 90’s. In 2007, liquid biofuels provided energy equivalent to 20 million tons of oil that represents 1% of fuel used globally for road transport. In 2030, the projection indicates that biofuels could reach 10% of total fuel. This period seems to be better for biofuels, for the issues about climate change, oil shortages and higher cost means that more and more countries are interested in alternative energy. In Argentina, as other countries, the concerning about being more independent and safer about energy supply has pushed the government to launch in 2001, the national biofuels program. This program encourages the regular national incorporation of biofuels in engines. This year, the quota of ethanol could not be reached (due to insufficient production) as established by law 26,334 of 5%. However, the quota for biodiesel produced from soybeans, will rise to 7% by mid-year and 10% in early 2011. There are different types of biofuels. The first generation ones- and are the most widely used especially edible biomass products. Some examples of materials used to produce biodiesel are soybean oil (almost all domestic production), rapeseed oil (used in the European Union) and palm oil (as in the case of Colombia and Malaysia). Others are in gaseous form, such as biogas from fermentation. An economic opportunity for Argentina Around the world and regarding the important role of Argentina as a major exporter of soybean oil, the country is seen as the Mecca of biodiesel. This new product causes a need that, thanks to international demand, brings promises of a millionaire business. The soybean production costs are very low - and that is what still keeps their international competitiveness, despite farming. The country is known to have one of the agricultural production systems more efficient in the world: The huge expansion of direct seeding reduced significantly the use of
En la
de la vi da era rr
ca
agricultural machines and fossil fuel consumption. So, another resource becomes scares: water. In 2010, the final volume of the soybean crop reached the 54 million of tons and was the highest in history. Argentina is the third largest exporter of oilseeds and lead the supplying of products in the international market: oil and flour. In 2009-2010, has reached a historical area planted with grain, whith 18.5 million hectareas. Since 2007 Argentina has developed an industrial tool able to convert soybean oil into fuel. The territory has benefited from the presence and investment of big industrial groups oil (Louis Dreyfus, Glencore, Vincentian) and various Pymes. In total, there are 19 plants producing. And these companies should invest more to reach 500 million dollars since the beginning of the national quota. This year, biodiesel production reached 2 000 million. Two thirds are for export and about 700 million to the local market. The use of renewable energy can contribute to regional development, a give to rural land a new source of income. In fact, now, the biofuel industry (such as ethanol, biodiesel) has generated over 15,000 jobs, taking the direct and indirect jobs. The province of Santa Fe has the largest number of biodiesel plants. This is because the high concentration of grain mills in the area. With this growth, in 2015, total demand will be approximately 70,000 jobs, creating a booming sector, which will have a major impact on the PIB of Argentina. Far from put competition to oil Although bio diesel has almost the same energy value than diesel, is 100% biodegradable and is less toxic than table salt, won’t win to oil, because its cost is still too high. Today, the price of 1,000 litters of bio diesel for export is 1059.6, or $ 1,059 per litter. Value applied in the local market is 10% less: 0.95 cents The price of oil is about 55 U.S. cents per litter by 2010: this is a high value. In 1998, a barrel of oil was $ 10, less than 7 cents per litter. If the mandatory reductions didn’t exist, bio fuels would not be competitive with the prices of oil. The only way to achieve real competition between the two fuels - as happened in Brazil - is the production through intensive cultivation and low cost. Today, the reality is that we have 420 litters of oil per hectare of soybean, which means that the performance is low compared with sunflower (890 litters), rape (1,100 litters) or palm (5500 litters). Nevertheless, bio fuels have other limitations; as well as help reduce pollution by reducing CO2 emissions at the same point have the most problems. In fact, the use of glyph sate (a necessary tool for cultivation of GM soy) is in the center of many debates in the country, because in some areas there is a higher incidence of spontaneous abortions, birth defects and cancer. Soil erosion is also very controversial, and the pressure on natural
En la
de la vi da era rr
ca
flora caused for the expansion of cultivated areas. Although bio fuels have no direct responsibility, soybeans are grown essentially for the production of flour, this make the bio fuel production more attractive. In Brazil, the monoculture sugar cane was highly polluting, especially for groundwater and waterways. This put in risk the ecosystem known in the country. In Malaysia is estimated the 87% of deforestation from palm oil production. So, this sentence orang-utans to disappear around 2020. So, more generally, if producers spend their crops to meet energy needs rather than the food, the amount of food will decrease and increase hunger and nutritional deficiencies. For now, bio fuels cannot only be a complement resource to petroleum. The future of bio fuels Researchers around the world are searching for a solution generated from biomass of non-traditional crops inedible oilseeds such as jatropha (1590 liters of oil per hectare), camel or samphire. In Argentina, Jatropha, a bush with a toxic vegetable oil, but able to produce biodiesel, is a serious alternative. Among its advantages is doesn’t compete with food, has a low cost and grows in arid soil. Critics point that should be harvested by hand and do not ripen fruit in a particular season, but throughout the year, and that complicate logistics. However, local and foreign investors have looking for jatorpha. Another technique is about change of cellulose into fuel. For this purpose, is used wood waste, sawdust, perfolla, corn stover and switchgrass. Everything that could form the basis for the conversion of a enormous energy. In the future, when energy will be crucial, plants may be the main actors.
GRAPHIC TABLE Key data • $ 2120 million dollars is what allows the evolution of the activity of biofuels in Argentina. • $ 500 million dollars, that’s what companies must invest in the production of biofuels in the short period since the beginning of the national quota. • $ 1 300 billion, this is achieved this year, exports of biodiesel.
En la
de la vi da era rr
ca
• $ 700 million dollars is what is consumed domestically. • $ 120 million dollars is what generates the internal market the ethanol industry. Source: Argentina’s biofuel partnership
Biodiesel factories in Argentina and the province of Santa Fe.
En la
de la vi da era rr
ca
LEGAL FRAME • Resolution 554/2010, issued June 6, 2010, increased the share of 7% biodiesel. • Resolution 7 / 2010, to February 9, 2010, ratification of the agreement on the supply of biodiesel b5 • Resolution 6 / 2010 dated February 8, 2010, establishing specifications for biodiesel quality. • Resolution 3 / 10 published on February 1, 2010, correction of resolution 733/09. • Resolution 733/09, of October 20, 2009, minutes of ethanol supply in 2010. • Resolution 689/09, of September 24, 2009, determination of business and the volume of ethanol required fee. • Resolution 1295-1208, the official newsletter of November 18th 2008, specifications for the quality of ethanol.+ • Resolution 1294-1208, the official newsletter of November 18, 2008, the pricing of ethanol. • Resolution 1293-1208, the official newsletter of November 18, 2008, mechanism of selection of projects for ethanol quota. • Resolution 266/08 of 11 February 2008, registration of entities authorized to conduct audits in biofuel plants. • Law 26.334/08 promulgated on January 2, 2008, law for the promotion of ethanol. • Decree 562/2009, which regulates the law 26.190/2006 in renewable energy. • Regulation of the law, Decree 109/2007, dated February 13, 2007. • The biofuels law # 26093, promulgated on 12 May 2006. • Resolution 129/2001, the definition of biodiesel.
En la
de la vi da era rr
ca
INTERVIEWS Source “government”
Jorge Hilbert
National Coordinator of Bioenergy, National Institute of Agricultural Technology, INTA What is the national biofuels Program? The program consists in various bioenergy projects. One point is the crop for biofuel production. Another is focused to second-generation biofuels. The third is the development of strategic crops, began with studies of ‘jatropha’ specie and the adaptation of this wild plant. We have two projects with the European Union. One focuses on the transformation of cellulose into biofuels and the other is responsible for the analysis of the entire soy chain and its use for biodiesel production. Argentina has a huge capacity to produce these oils to produce biofuels. Today is the third largest exporter. What is the role of Argentina, around the world in the use of biofuels? Argentina leads from the melting point - the fuel mix - as have 7% of their domestic markets and plans to have 10% blend of biodiesel, starting in January. Our country has no fuel: this mixture is twofold: the environment, reducing emissions and a goal of energy security and improving the balance of payments between imports and exports. Can you imagine using biodiesel in its pure form? No, biofuels have a limited participation, and today we speak of a share of almost 2% in liquid transportation fuels around the world. Personally I consider surprising that such participation is more than 5%. So, I think a pure blend, no. Why soy cannot be an alternative to oil? Biodiesel is produced in intensive farming, with a very low cost to compete with oil costs.Today, the market for biodiesel is totally an artificial market with the help of governments. If mandatory reductions didn’t exist, biofuels can not compete with oil prices. There is one exception: bioethanol. is obtained from sugar cane with high production that comes from the tropics and subtropics. Plants have carbon 4, with high performance and energy balance between biomass production and highenergy consumption. Can exist a plant with a higher performance than soy? Where is the research in Argentina?
En la
de la vi da era rr
ca
First, we define the term second-generation biofuels. Some refer to non-traditional crops, which do not compete with food, like seaweed, but require big investments and costs for the moment, are enormous. Other second-generation is processing flax cellulose into liquid fuel. INTA has a research staff dedicated to the development of technological inputs to transform the cellulose and make it economically viable. These researches are slow, but in the world, large investments are made in their favour. Indeed, the conversion of any cellulose material into fuel gives an overview of possible sources of raw materials.
The Third sector
Claudio Molina
Executive director of association of biofuels Argentina What is the role of your association? Its main objective is to ensure that in Argentina, biofuel production is possible and what used to be profitable from the technical point of view could be in the economic, social and environmental. What is the importance of economic topic? Biofuels industry as a whole, taking the direct and indirect jobs, are providing over 15,000 jobs. The production of bioethanol derived from sugar cane, is a very intensive work. With a growth until 2015 is probably that the total demand of jobs will be around 70000 as it is a dynamic sector with a strong impact on the PIB of Argentina. Which is the real benefit of biofuels at the environment? No doubt, biofuels are the best option in the world today to supplement transportation fuels. In Argentina, our soy biodiesel is done with sustainable agriculture, with more than 70% to 80% with direct seeding. Soybean production is based on a radius of 300 km from the port of Rosario. This is a process of high technology. Therefore, we can say that what is behind our biodiesel is sustainable. Argentina could become another Brazil and make available to motorists pure biodiesel? Now, Argentina is the world’s biggest exporter of biodiesel. And have the opportunity to be the Brazil of biodiesel. In the case of bioethanol, the majority of future production will come from cereals. The possibility of using pure biofuels is more related to authorizations and approvals for manufacturers. In Brazil, the development of flex engines allows consumers to choose between gasoline and ethanol. By now, Argentina has approved flex engines. In terms of biodiesel, the use of pure
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biodiesel is not yet possible. Could use biodiesel in its pure form only in certain powerful and heavy engines, as in Germany, but this is not in a short or medium term. Is there a negative effect when edible soybean oil is used for energy and eating? Vegetable oils in general are food additives. Basic diet does not depend on the fat in it. The problem is much more difficult when it comes from corn, since it is a staple for meat production. However, the problem is overstated, as there are many interests that are against biofuels, in particular the oil exporters and food companies who see biofuels as a threat to the possible increase of its raw materials. The main thing is these countries should coordinate their policies in the long term; regulating the production of crops and foods derived from biofuels, so regular traffic. We cannot deprive us of biofuels.
Private sector
Eng. Federico Pochat
New project manager of Patagonia Bioenergy In what context was created Patagonia Bioenergy? What are your capital expenses? Where do you stand on the Argentine market for biofuels? Patagonia Bioenergy is a leading producer of biodiesel in the country and the world. Founded in 2007 by two Argentine companies, Cazenave y Asociados SA, which deals with agricultural activities and has over 40 years of experience, and Energy and Solutions, which sells gas and other petroleum fuels. Patagonia bioenergy has helped our country to become today the largest exporter of biodiesel. How much you process? Currently we have reached a manufacturing capacity of 250 000 tonnes per year. A program to double capacity by 2011 is in development. Is it easy to get raw materials? Argentina is the largest exporter of soybean oil in the world. Has very strong surplus, which means that there is not a problem getting raw materials. However, we must develop and improve alternative crops as Jatropha and Camelina. In what market you sell products?
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75% of our production is for export to the most demanding markets in the world (mainly Europe). Since 2010, we also supply the local market, making it possible to combine all the Argentine territory of diesel with 7% biodiesel. What is the future of biofuels? Could they replace oil? We face a new global paradigm for the use of biofuels, their integration into the global energy is irreversible. About the research in mitigation of climate change is a complement between fossil fuels and bioenergy. As fossil fuels have a hegemonic presence, and it’s expected that a gradual integration between these two fuels in order to provide countries with higher productivity, social protection and environmental sustainability. What technologies or materials Patagonia Bioenergy bet for the future? Patagonia bioenergy is currently the leader in the research of alternative crops in the national level. In this area, we proposed that our country must to have a vision of future in relation to these events; we also have our own crops in Formosa and Paraguay. Among alternative crops for which we focus research, special mention has the Jatropha. Is a plant that has a high production of oil and produces more than twice per hectare as soybean and grows where no other crop is possible, so there is no competition with food, and is not harmful to water and the ground. On the other hand, there is a kind of oilseed Camelina as rapeseed and mustard, with an annual cycle in winter, with better cold tolerance compared to other crops. Grown on marginal soils, not compete with food production. Why does the world continue to test the use of crops for biodiesel production?
Citizens
Juan Ignacio Egozcue Did you know that we integrate biofuels in the fuel in Argentina? I knew about the use of biofuels in gasoline. Sounds like a good idea, knowing that the regular fuel, petroleum is a nonrenewable source. Seems like a good idea as long as cars have no problem to travel. If is used for this purpose best as a renewable fuel for cars would be spectacular, but there are cars that do not work well, such as gas,GNC is a fuel, but it is not the most desirable .Always be the best gasoline or diesel, but to have a car with gas, I realized that this was lot the same. If we can make a fuel made with soy and does not affect the function of the car, it would be great.
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Would you be willing to pay a little more to make biofuels? Whether biofuels were a fuel that is not lost on the car engine, I would be willing to pay more money. Are you sensitive to environmental issues? I’m not the most attentive to the environment, but I am not a destroyer of the environment. For example, the papers, throw them away. I try to pay attention to everything, without thinking that is a particularly important role to play, because if we all think the same ... I do not know if I realize, but I know what it is and represents. Maybe going to happen once I’m dead, but you have to think about the future. Tomorrow, if all goes well, without being aware of things, everything will fall apart. For you, biofuels are a practical solution? Indeed, we all know the process of collecting oil. On the other hand, we know that wars have broken this resource. Hope that the oil no longer has much significance in the fuel, so it will not replace the plants, and will lose interest and there will be fewer wars. Would Would be good.
