Biofuels in Brazil - UNEP
Biofuels in Brazil Fabio R. de Carvalho PETROBRAS S.A Nairobi, June 28, 2007
Company Overview 16 16 Refineries Refineries with with aa refine refine capacity capacity of of 2,060 2,060 thousand thousand bpd bpd
Proven Proven reserves: reserves: 11.0 11.0 billion billion boe boe (SEC) (SEC)
Pipelines: Pipelines: 22,390 22,390 km km Oil Oil & & gas gas production: production: 2,036 2,036 thousand thousand boe/d boe/d
E&P E&P
Refining, Refining, Transportation, Transportation, Trading Trading
Petro Petro chemicals Ethylene Ethylene Production: Production: chemicals
Retailing Retailing
2.4 2.4 million million ton/year ton/year
Natural Natural Gas Gas
Gas Gas sales: sales: 27.5million 27.5million m m33/d /d
More More than than 7,000 7,000 service service stations stations (33% (33% of of the the Brazilian Brazilian retail retail market) market)
720 720 stations stations in in Argentina Argentina
20% 20% of of the the distribution distribution market market in in Bolivia Bolivia and and 14% 14% in in Argentina Argentina
Company Overview An integrated energy company with US$ 74 billion in gross revenue (2005 US GAAP)
Exploration and Production
• Proven Reserves: 11.8 billion boe (SEC 2005)
Refining, Transport
• 16 Refineries • Capacity: 2,114 thousand bpd
Distribution Natural Gas
• Oil and Gas Production: 2.22 million boed (2005)
• Pipelines: 18,854 miles • Vessels (own fleet): 50 • 6,933 service stations (34% share in the Brazilian market), 746 in Argentina and 105 in Bolivia
• Sales of Natural Gas: 1.83 bcf/day
• Ethene Production: 460,000 tons/year Petrochemicals• Styrene Production: 250,000 tons/year • Polystyrene Production: 120,000 tons/year Operational data includes Petrobras Energia
International Overview
Global Biofuels Demand Dynamics Strategies for reducing / curtailing the volumes of greenhouse gases emissions by 2012 (Kyoto Protocol) Less dependence on oil products Strengthening local agriculture and non-food markets (energy agriculture) Generation of local jobs and income with subsidies and protectionism
Biofuels
Motivation for the use of Biofuels in Brazil Renewable Energy Sources Secure Energy Supplies Lower Emissions Carbon Credits Import Substitutions
Generation of Jobs and Income
Biodiesel
Vocation for the Production of Biofuels
30o N
Trop.Cancer Equator Trop.Capricorn 30o S
Land Availability Brazil: 851 million hectares Million hectares
AMAZON RAINFOREST GRAZING LANDS PROTECTED AREAS. ANNUAL CROPS PERENNIAL CROPS CITIES, LAKES, HIGHWAYS AND SWAMPS PLANTED FORESTS OTHER USES UNUSED ARABLE LANDS ON THE AGRICULTURAL FRONTIER
TOTAL
350 215 55 47 15 20 5 707 54
90 851
Source: MAPA, 2005
Energy in Brazil
RENEWABLE ENERGY: 44,7 % Fonte: MME, BEN 2006
Energy Matrix %
Energy Matrix: Brazil x Global
100
80
86 60
55 40
RENEWABLE
45 NON-RENEWABLE
20
14 0
World Source: Ministry of Mines and Energy (MME), 2005
Brazil
Vehicular Fuels Matrix (2005) Diesel oil 54.5%
55,7% (2004)
Gasoline A 25.6% Anhydrous Alcohol 8.5% 8,8% (2004)
Hydrated Alcohol 8.4%
6,6% (2004)
35.3% (2004)
6%
2,4% (2004)
37%
VNG 2.9%
26,5% (2004)
Gasoline C 25.6 + 8.5 = 34.1%
56%
% Alcohol used Participação do in Otto-Type Alcohol em Vehicles Veículos Otto
Álcool Gasolina GNV
Total Alcohol 8.5 + 8.4 = 16.9% 15.4% (2004)
Biofuels
Brazil and Biofuels Brazil is still a diesel oil importer Brazil plays an outstanding role on the world biofuels stage (fuel alcohol) Vast territory with weather and soil conditions favoring the production of biomass Much of Brazil is suitable for growing oil seeds and sugar cane Global demands for biofuels are rising Alcohol production is firmly established, while biodiesel production is rated as strategic for Brazil
Alcohol
Alcohol - Brazil
Proálcool – Brazilian Alcohol Programme In 1975 Brazil started an extensive ethanol production programme largely supported by Petrobras. The company also developed and installed an ethanol producing plant from cassava (Curvelo, MG)
Fuel Ethanol Program Evolution Ethanol Program Implanted (BLENDS)
Gasohol and Ethanol Cars (2nd oil shock)
Program for oil imports reduction
70’s
80´S
Program of Emission Controls Gasohol and (PROCONVE) Flex fuel Cars
Environmental Benefits 90´S
00´S
Future
Alcohol: Benefits for Brazil FUEL DEMANDS – OTTO CYCLE VEHICLES 106 BEP 180
TOTAL DEMAND – OTTO CYCLE GASOLINE PRODUCTION GASOLINE CONSUMPTION
160 140
What Brazil would need to meet fuel demands from Otto-cycle vehicles if ethanol did not exist
120 100 80
Accumulated effective savings of 778 million bep
60 40 20
~US$ 52 billion
YEAR
0
1970
1975
1980
1985
1990
1995
During the period, the use of alcohol avoided the emission of 644 million tons of CO2
2000
2005
Source: MME, BEN 2005
Alcohol - Brazil
World largest largest ethanol ethanol producer producer and and technological technological leader. leader. •• World Annual turnover: turnover: US$ US$ 12 12 billion billion (circa (circa 50.000 50.000 industries). industries). •• Annual Exports: US$ US$ 2.5 2.5 billion/year billion/year (sugar (sugar and and ethanol). ethanol). •• Exports: Total area area of of plantations: plantations: 55 million million hectares. hectares. •• Total Sugar cane cane production: production: 340 340 million million tons/year. tons/year. •• Sugar Installed capacity capacity for for ethanol ethanol production: production: 16 16 million million m³/year. m³/year. •• Installed Ethanol production: production: 14 14 million million m³/year m³/year (2004). (2004). •• Ethanol Ethanol present present potential potential surplus surplus (for (for export) export) :: 22 million million m³/y m³/y •• Ethanol can be be easily easily expanded. expanded. –– can 308 Sugar Sugar Mills Mills and and Distilleries: Distilleries: •• 308 218 located located at at Center-Southern. Center-Southern. –– 218
Alcohol - Brazil
Competitive advantages of Brazil High standard standard agro-industrial agro-industrial technological technological level. level. •• High All input input and and equipment equipment produced produced in in Brasil. Brasil. •• All World lowest lowest cost cost •• World
Brasil: Brasil: USA: USA: Europe: Europe:
US$ 0,18/liter 0,18/liter US$ US$ 0,33/liter 0,33/liter US$ US$ 0,56/liter 0,56/liter US$
Available extra extra area area for for agriculture. agriculture. •• Available Very favorable favorable climate climate conditions. conditions. •• Very
Álcool
Ethanol production: World and Brazil
World 44,9 main producers (2005, billion liters) Source: F.O. Licht
USA 16,21 Brazil 16,07 China 3,8 India 1,7 France 0,9
Alcohol - Brazil
Technological development New irrigation systems Sugar cane harvesting without burning Climate zone areas Reduction of equipment losses Technical management (softwares) Genetic improvement
Since 1975, technological development has improved the results by increasing productivity: 33% saccharose amount in sugar cane: 8% conversion rate: 14%
Alcohol - Brazil Learning Curve for Ethanol Production in Brazil ≅ US$ 105 / bbl
Production Costs
(US$/m3) 1000 900 800 700 600
1980
500
≅ US$ 30 / bbl
400 300
200
1998
100 1
10
100
(million m³ Consumption Ethanol Accumulated m³) ethanol cumulative consumption (in million cubic meters)
Source: COPERSUCAR - 1998
1000
Ethanol trading Brazil-Japan Ethanol Inc. • Recently, Petrobras incorporated Brazil-Japan Ethanol Inc. • The company will import and distribute Brazilianproduced ethanol in Japan; • Development of technical and commercial solutions for the reliable and long term supply of alcohol in the Japanese market; • Petrobras will break into one of the most complex and important energy markets in the World: • ethanol logistics distribution • fuel distribution sector in Japan.
Others • Exploiting opportunities for sales and technology transfer in Ecuador, Venezuela, Cuba and Nigeria.
Alcohol - Brazil
Challenges for the sugar cane sector Dimension of the worldwide fuel market
Managing Plan for sugar cane sector expansion
Infrastructure of transportation in the countryside
Capacity of the capital goods industry to meet the demand
Continuous technological evolution
Alcohol - Brazil
Forecasts for the Sugar and Alcohol Sector 2004-2005 HARVEST
2010-2011 HARVEST
Plants in operation: 329
Plants in operation: 390-400
Sugar cane production: 386
Sugar cane production: 570
million tons
million tons
Alcohol production: 15.4 billion
Alcohol production: 27.3 billion
liters
liters
Sugar production: 26.5 million
Sugar production: 31.7 million
tons
tons
Alcohol exports: 2.5 billion liters
Alcohol exports: 5.2 billion liters Source: Única, Copersucar, Dedini.
Biodiesel
Biodiesel
Brazilian Biodiesel Production and Use Program
Purposes: Diversification of Brazil’s Energy Matrix: Fossil and Renewable Reduction of diesel and oil imports Generation of jobs and income Settling families on the land and expansion of local sustainable agriculture Making good use of soils not appropriate for food crops Providing an environmentally correct fuel
Biodiesel
Brazil’s Biodiesel Program
Sustainability
Economic
Environmental
Social
Biodiesel
Potential Raw Materials • Cotton seeds • Peanuts • Babassu palm nuts • Buriti palm nuts • Rapeseed • Dendê palm nuts • Sesame seeds • Sunflower seeds • Jojoba palm nuts • Linseed • Castor beans • Oilseed radish • Frying oil • Palmiste nuts • Pequi / souari nuts • Physic nuts • Soybeans • Tucuma palm nuts • Industrial wastes • Animal fats
Ramos, LP (adapted)
Biodiesel Brazilian seeds Castor oil seed
Sunflower
Soy
Palm
Cotton
Crop yield (kg/ha) 1,500
1,500
3,000
20,000
3,000
Oil contents 47%
42%
18%
20%
15%
Oil yield (kg/ha) 705
630
540
4,000
450
2005 Production in Brazil (m3/yr) 90,000
23,000
5,600,000
Source: Embrapa, MDA, IBGE, CONAB
151,000
315,000
Plant Oils Production in Brazil Brazil
Soybean Oil Cotton Seed Oil
Jan Dec
Jan Dec
Jan Dec
Part. %
2002
2003
2004
2004
4,937.0
5,387.0
5,571.0
p
89.2
195.7
*
217.0
*
268.4
*
4.3
118.0
*
129.0
*
140.0
*
2.2
55.7
*
62.1
*
74.6
*
1.2
45.9
*
55.0
*
63.6
*
1.0
40.1
*
39.7
*
60.8
*
1.0
16.9
*
20.4
*
22.8
*
0.4
Peanut Oil
28.1
*
21.8
*
21.8
*
0.3
Palmiste Oil
13.3
*
14.5
*
15.8
*
0.3
Linseed Oil
1.7
*
2.0
*
2.1
*
0.0
1.9 5,454.3
*
1.9 5,950.4
*
1.9 6,242.8
*
0.0 100.0
Dendê Palm Oil Sunflower Seed Oil Maize Oil Castor Bean Oil Rapeseed Oil
Coconut Oil Total
Source: Oilword Annual 2005
Biodiesel Brazil’s National Biodiesel Program 2005 2007 (2% authorizative)
2008 2012 (2% mandatory) (5% authorizative)
2012 onwards (5% mandatory)
Brazilian Market
Brazilian Market
Brazilian Market
0 - 840 million liters
0.8 – 2.5 billion liters
2.5 billion liters
BR Distribuidora Market
BR Distribuidora Market
BR Distribuidora Market
0 - 200 million liters
200 - 600 million liters
> 600 million liters
Projects in Brazil Producers in Operation and Planned
B2 Demand ≅ 840 million liters / year
♦ Built with no Production ♦ Under Construction ♦ Producing ♦ Pilot Plants ♦ Being Planned
PETROBRAS Research Projects
Experimental Experimental Biodiesel Biodiesel Production Production Unit Unit using using Plant Plant Oils Oils
Guamaré, Rio Grande do Norte State
PETROBRAS Research Projects
Experimental Experimental Biodiesel Biodiesel Production Production Unit Unit using using Oilseeds Oilseeds
Guamaré, Rio Grande do Norte State
Biodiesel Industrial Plants 3 Projects Being Implemented
Quixadá
Capacity: 171 thousand m3/year
CE
Investments: ~ US$ 60 million Inputs Family Agriculture: castor, cotton, and palm. Complementary: soy. Jobs Generations: Construction: 1,200 direct and 300 indirect Operation: 90 direct Raw material production:70,000 families Start up:
4 Q/2007
BA
Candeias MG
semi-arid region
All Petrobras’ biodiesel production will qualify to the Government Social Seal
Montes Claros
Distribution
More than 4,000 PETROBRAS service stations already offer the B2 diesel / biodiesel blend
Corporate Strategy Petrobras´ strategic position towards its Mission and Vision 2015 were not modified, Corporate Strategy now also focuses on Renewable Energy.
Corporate Strategy Growth
Profitability
Social and Environmental Responsibilities
Lead the Latin oAmerica products and biofuels market, working as Liderar mercadooil, denatural petróleo,gas, gásoil natural e derivados na América Latina, an integrated energy company, selective expansion petrochemical, atuando como empresawith integrada de energia, comofexpansão seletiva renewable energy and international da petroquímica e da atividade activities. internacional. Consolidate and increase competitive advantages in the Brazilian and South American oil and oil products market.
Develop and lead the domestic natural gas market and perform in an integrated manner in the gas and electric market in South America.
Selectively expand international activities in an integrated manner with Company’s businesses.
Selectively expand interest in the petrochemicals market.
Expand participation in biofuels market, lead the domestic biodiesel production and increase participation in the ethanol business.
Operational, management, technological and human resources excellence
Business Strategies Renewable Energy Investment 2007-2011
Target 2011
Biodiesel Plants
Availability of 855 Thousand cu.m/year
HBio (Bio-Refining)
Vegetable oil Processing 1,033 Thousand cu.m/year
Alcohol pipelines Alcohol Project Vessel Aeolic Energy Solar Energy Other Sources of Renewable Energy
Export of 3.5 million cu.m/year of Ethanol
Installed Capacity of Generation of Electric Power from 240 MW Renewable Sources
GHG avioded emissions: 3.93 MM tons CO2 eq. Total investments in energetic development of renewable sources and biofuels of US$ 0.7 billion
Thank you !
Fabio R. de Carvalho
E-mail: [email protected]
Company Overview 16 16 Refineries Refineries with with aa refine refine capacity capacity of of 2,060 2,060 thousand thousand bpd bpd
Proven Proven reserves: reserves: 11.0 11.0 billion billion boe boe (SEC) (SEC)
Pipelines: Pipelines: 22,390 22,390 km km Oil Oil & & gas gas production: production: 2,036 2,036 thousand thousand boe/d boe/d
E&P E&P
Refining, Refining, Transportation, Transportation, Trading Trading
Petro Petro chemicals Ethylene Ethylene Production: Production: chemicals
Retailing Retailing
2.4 2.4 million million ton/year ton/year
Natural Natural Gas Gas
Gas Gas sales: sales: 27.5million 27.5million m m33/d /d
More More than than 7,000 7,000 service service stations stations (33% (33% of of the the Brazilian Brazilian retail retail market) market)
720 720 stations stations in in Argentina Argentina
20% 20% of of the the distribution distribution market market in in Bolivia Bolivia and and 14% 14% in in Argentina Argentina
Company Overview An integrated energy company with US$ 74 billion in gross revenue (2005 US GAAP)
Exploration and Production
• Proven Reserves: 11.8 billion boe (SEC 2005)
Refining, Transport
• 16 Refineries • Capacity: 2,114 thousand bpd
Distribution Natural Gas
• Oil and Gas Production: 2.22 million boed (2005)
• Pipelines: 18,854 miles • Vessels (own fleet): 50 • 6,933 service stations (34% share in the Brazilian market), 746 in Argentina and 105 in Bolivia
• Sales of Natural Gas: 1.83 bcf/day
• Ethene Production: 460,000 tons/year Petrochemicals• Styrene Production: 250,000 tons/year • Polystyrene Production: 120,000 tons/year Operational data includes Petrobras Energia
International Overview
Global Biofuels Demand Dynamics Strategies for reducing / curtailing the volumes of greenhouse gases emissions by 2012 (Kyoto Protocol) Less dependence on oil products Strengthening local agriculture and non-food markets (energy agriculture) Generation of local jobs and income with subsidies and protectionism
Biofuels
Motivation for the use of Biofuels in Brazil Renewable Energy Sources Secure Energy Supplies Lower Emissions Carbon Credits Import Substitutions
Generation of Jobs and Income
Biodiesel
Vocation for the Production of Biofuels
30o N
Trop.Cancer Equator Trop.Capricorn 30o S
Land Availability Brazil: 851 million hectares Million hectares
AMAZON RAINFOREST GRAZING LANDS PROTECTED AREAS. ANNUAL CROPS PERENNIAL CROPS CITIES, LAKES, HIGHWAYS AND SWAMPS PLANTED FORESTS OTHER USES UNUSED ARABLE LANDS ON THE AGRICULTURAL FRONTIER
TOTAL
350 215 55 47 15 20 5 707 54
90 851
Source: MAPA, 2005
Energy in Brazil
RENEWABLE ENERGY: 44,7 % Fonte: MME, BEN 2006
Energy Matrix %
Energy Matrix: Brazil x Global
100
80
86 60
55 40
RENEWABLE
45 NON-RENEWABLE
20
14 0
World Source: Ministry of Mines and Energy (MME), 2005
Brazil
Vehicular Fuels Matrix (2005) Diesel oil 54.5%
55,7% (2004)
Gasoline A 25.6% Anhydrous Alcohol 8.5% 8,8% (2004)
Hydrated Alcohol 8.4%
6,6% (2004)
35.3% (2004)
6%
2,4% (2004)
37%
VNG 2.9%
26,5% (2004)
Gasoline C 25.6 + 8.5 = 34.1%
56%
% Alcohol used Participação do in Otto-Type Alcohol em Vehicles Veículos Otto
Álcool Gasolina GNV
Total Alcohol 8.5 + 8.4 = 16.9% 15.4% (2004)
Biofuels
Brazil and Biofuels Brazil is still a diesel oil importer Brazil plays an outstanding role on the world biofuels stage (fuel alcohol) Vast territory with weather and soil conditions favoring the production of biomass Much of Brazil is suitable for growing oil seeds and sugar cane Global demands for biofuels are rising Alcohol production is firmly established, while biodiesel production is rated as strategic for Brazil
Alcohol
Alcohol - Brazil
Proálcool – Brazilian Alcohol Programme In 1975 Brazil started an extensive ethanol production programme largely supported by Petrobras. The company also developed and installed an ethanol producing plant from cassava (Curvelo, MG)
Fuel Ethanol Program Evolution Ethanol Program Implanted (BLENDS)
Gasohol and Ethanol Cars (2nd oil shock)
Program for oil imports reduction
70’s
80´S
Program of Emission Controls Gasohol and (PROCONVE) Flex fuel Cars
Environmental Benefits 90´S
00´S
Future
Alcohol: Benefits for Brazil FUEL DEMANDS – OTTO CYCLE VEHICLES 106 BEP 180
TOTAL DEMAND – OTTO CYCLE GASOLINE PRODUCTION GASOLINE CONSUMPTION
160 140
What Brazil would need to meet fuel demands from Otto-cycle vehicles if ethanol did not exist
120 100 80
Accumulated effective savings of 778 million bep
60 40 20
~US$ 52 billion
YEAR
0
1970
1975
1980
1985
1990
1995
During the period, the use of alcohol avoided the emission of 644 million tons of CO2
2000
2005
Source: MME, BEN 2005
Alcohol - Brazil
World largest largest ethanol ethanol producer producer and and technological technological leader. leader. •• World Annual turnover: turnover: US$ US$ 12 12 billion billion (circa (circa 50.000 50.000 industries). industries). •• Annual Exports: US$ US$ 2.5 2.5 billion/year billion/year (sugar (sugar and and ethanol). ethanol). •• Exports: Total area area of of plantations: plantations: 55 million million hectares. hectares. •• Total Sugar cane cane production: production: 340 340 million million tons/year. tons/year. •• Sugar Installed capacity capacity for for ethanol ethanol production: production: 16 16 million million m³/year. m³/year. •• Installed Ethanol production: production: 14 14 million million m³/year m³/year (2004). (2004). •• Ethanol Ethanol present present potential potential surplus surplus (for (for export) export) :: 22 million million m³/y m³/y •• Ethanol can be be easily easily expanded. expanded. –– can 308 Sugar Sugar Mills Mills and and Distilleries: Distilleries: •• 308 218 located located at at Center-Southern. Center-Southern. –– 218
Alcohol - Brazil
Competitive advantages of Brazil High standard standard agro-industrial agro-industrial technological technological level. level. •• High All input input and and equipment equipment produced produced in in Brasil. Brasil. •• All World lowest lowest cost cost •• World
Brasil: Brasil: USA: USA: Europe: Europe:
US$ 0,18/liter 0,18/liter US$ US$ 0,33/liter 0,33/liter US$ US$ 0,56/liter 0,56/liter US$
Available extra extra area area for for agriculture. agriculture. •• Available Very favorable favorable climate climate conditions. conditions. •• Very
Álcool
Ethanol production: World and Brazil
World 44,9 main producers (2005, billion liters) Source: F.O. Licht
USA 16,21 Brazil 16,07 China 3,8 India 1,7 France 0,9
Alcohol - Brazil
Technological development New irrigation systems Sugar cane harvesting without burning Climate zone areas Reduction of equipment losses Technical management (softwares) Genetic improvement
Since 1975, technological development has improved the results by increasing productivity: 33% saccharose amount in sugar cane: 8% conversion rate: 14%
Alcohol - Brazil Learning Curve for Ethanol Production in Brazil ≅ US$ 105 / bbl
Production Costs
(US$/m3) 1000 900 800 700 600
1980
500
≅ US$ 30 / bbl
400 300
200
1998
100 1
10
100
(million m³ Consumption Ethanol Accumulated m³) ethanol cumulative consumption (in million cubic meters)
Source: COPERSUCAR - 1998
1000
Ethanol trading Brazil-Japan Ethanol Inc. • Recently, Petrobras incorporated Brazil-Japan Ethanol Inc. • The company will import and distribute Brazilianproduced ethanol in Japan; • Development of technical and commercial solutions for the reliable and long term supply of alcohol in the Japanese market; • Petrobras will break into one of the most complex and important energy markets in the World: • ethanol logistics distribution • fuel distribution sector in Japan.
Others • Exploiting opportunities for sales and technology transfer in Ecuador, Venezuela, Cuba and Nigeria.
Alcohol - Brazil
Challenges for the sugar cane sector Dimension of the worldwide fuel market
Managing Plan for sugar cane sector expansion
Infrastructure of transportation in the countryside
Capacity of the capital goods industry to meet the demand
Continuous technological evolution
Alcohol - Brazil
Forecasts for the Sugar and Alcohol Sector 2004-2005 HARVEST
2010-2011 HARVEST
Plants in operation: 329
Plants in operation: 390-400
Sugar cane production: 386
Sugar cane production: 570
million tons
million tons
Alcohol production: 15.4 billion
Alcohol production: 27.3 billion
liters
liters
Sugar production: 26.5 million
Sugar production: 31.7 million
tons
tons
Alcohol exports: 2.5 billion liters
Alcohol exports: 5.2 billion liters Source: Única, Copersucar, Dedini.
Biodiesel
Biodiesel
Brazilian Biodiesel Production and Use Program
Purposes: Diversification of Brazil’s Energy Matrix: Fossil and Renewable Reduction of diesel and oil imports Generation of jobs and income Settling families on the land and expansion of local sustainable agriculture Making good use of soils not appropriate for food crops Providing an environmentally correct fuel
Biodiesel
Brazil’s Biodiesel Program
Sustainability
Economic
Environmental
Social
Biodiesel
Potential Raw Materials • Cotton seeds • Peanuts • Babassu palm nuts • Buriti palm nuts • Rapeseed • Dendê palm nuts • Sesame seeds • Sunflower seeds • Jojoba palm nuts • Linseed • Castor beans • Oilseed radish • Frying oil • Palmiste nuts • Pequi / souari nuts • Physic nuts • Soybeans • Tucuma palm nuts • Industrial wastes • Animal fats
Ramos, LP (adapted)
Biodiesel Brazilian seeds Castor oil seed
Sunflower
Soy
Palm
Cotton
Crop yield (kg/ha) 1,500
1,500
3,000
20,000
3,000
Oil contents 47%
42%
18%
20%
15%
Oil yield (kg/ha) 705
630
540
4,000
450
2005 Production in Brazil (m3/yr) 90,000
23,000
5,600,000
Source: Embrapa, MDA, IBGE, CONAB
151,000
315,000
Plant Oils Production in Brazil Brazil
Soybean Oil Cotton Seed Oil
Jan Dec
Jan Dec
Jan Dec
Part. %
2002
2003
2004
2004
4,937.0
5,387.0
5,571.0
p
89.2
195.7
*
217.0
*
268.4
*
4.3
118.0
*
129.0
*
140.0
*
2.2
55.7
*
62.1
*
74.6
*
1.2
45.9
*
55.0
*
63.6
*
1.0
40.1
*
39.7
*
60.8
*
1.0
16.9
*
20.4
*
22.8
*
0.4
Peanut Oil
28.1
*
21.8
*
21.8
*
0.3
Palmiste Oil
13.3
*
14.5
*
15.8
*
0.3
Linseed Oil
1.7
*
2.0
*
2.1
*
0.0
1.9 5,454.3
*
1.9 5,950.4
*
1.9 6,242.8
*
0.0 100.0
Dendê Palm Oil Sunflower Seed Oil Maize Oil Castor Bean Oil Rapeseed Oil
Coconut Oil Total
Source: Oilword Annual 2005
Biodiesel Brazil’s National Biodiesel Program 2005 2007 (2% authorizative)
2008 2012 (2% mandatory) (5% authorizative)
2012 onwards (5% mandatory)
Brazilian Market
Brazilian Market
Brazilian Market
0 - 840 million liters
0.8 – 2.5 billion liters
2.5 billion liters
BR Distribuidora Market
BR Distribuidora Market
BR Distribuidora Market
0 - 200 million liters
200 - 600 million liters
> 600 million liters
Projects in Brazil Producers in Operation and Planned
B2 Demand ≅ 840 million liters / year
♦ Built with no Production ♦ Under Construction ♦ Producing ♦ Pilot Plants ♦ Being Planned
PETROBRAS Research Projects
Experimental Experimental Biodiesel Biodiesel Production Production Unit Unit using using Plant Plant Oils Oils
Guamaré, Rio Grande do Norte State
PETROBRAS Research Projects
Experimental Experimental Biodiesel Biodiesel Production Production Unit Unit using using Oilseeds Oilseeds
Guamaré, Rio Grande do Norte State
Biodiesel Industrial Plants 3 Projects Being Implemented
Quixadá
Capacity: 171 thousand m3/year
CE
Investments: ~ US$ 60 million Inputs Family Agriculture: castor, cotton, and palm. Complementary: soy. Jobs Generations: Construction: 1,200 direct and 300 indirect Operation: 90 direct Raw material production:70,000 families Start up:
4 Q/2007
BA
Candeias MG
semi-arid region
All Petrobras’ biodiesel production will qualify to the Government Social Seal
Montes Claros
Distribution
More than 4,000 PETROBRAS service stations already offer the B2 diesel / biodiesel blend
Corporate Strategy Petrobras´ strategic position towards its Mission and Vision 2015 were not modified, Corporate Strategy now also focuses on Renewable Energy.
Corporate Strategy Growth
Profitability
Social and Environmental Responsibilities
Lead the Latin oAmerica products and biofuels market, working as Liderar mercadooil, denatural petróleo,gas, gásoil natural e derivados na América Latina, an integrated energy company, selective expansion petrochemical, atuando como empresawith integrada de energia, comofexpansão seletiva renewable energy and international da petroquímica e da atividade activities. internacional. Consolidate and increase competitive advantages in the Brazilian and South American oil and oil products market.
Develop and lead the domestic natural gas market and perform in an integrated manner in the gas and electric market in South America.
Selectively expand international activities in an integrated manner with Company’s businesses.
Selectively expand interest in the petrochemicals market.
Expand participation in biofuels market, lead the domestic biodiesel production and increase participation in the ethanol business.
Operational, management, technological and human resources excellence
Business Strategies Renewable Energy Investment 2007-2011
Target 2011
Biodiesel Plants
Availability of 855 Thousand cu.m/year
HBio (Bio-Refining)
Vegetable oil Processing 1,033 Thousand cu.m/year
Alcohol pipelines Alcohol Project Vessel Aeolic Energy Solar Energy Other Sources of Renewable Energy
Export of 3.5 million cu.m/year of Ethanol
Installed Capacity of Generation of Electric Power from 240 MW Renewable Sources
GHG avioded emissions: 3.93 MM tons CO2 eq. Total investments in energetic development of renewable sources and biofuels of US$ 0.7 billion
Thank you !
Fabio R. de Carvalho
E-mail: [email protected]
