Sin tÃtulo de diapositiva - Argentine Embassy - London
The BRITISH ARGENTINE CHAMBER OF COMMERCE Business Networking Day2010 13th and 14th October – United Kingdom
ARGENTINA
ARGENTINA
PRESENTATION
•Energy sector in Argentina. •Reasons for the development of biofuels in Argentina. •Law Nº 26093: main objectives. •Availability of raw material for biofuels production. •Recent developments in the Argentine biofuels sector. •Conclusions and challenges ahead.
ARGENTINA
ARGENTINE ENERGY CONSUMPTION BY SOURCE
Hydro 6%
Nuclear 2%
Coal 2%
Natural Gas 41%
Others 4%
Oil 45%
Source: Department of Energy, Argentina
ARGENTINA
LIQUID FUELS - CONSUMPTION
GASOLINE 17%
CNG 17%
DIESEL OIL 66%
Fuente: Secretaría de Energía Argentina imports 3 to 4% of total diesel oil ARGENTINA
REASONS FOR THE DEVELOPMENT OF BIOFUELS IN ARGENTINA WORLD SOYBEAN PRODUCTION 2008:
Country
Production
Share
million tons
%
USA
72.9
33%
BRAZIL
61.0
28%
ARGENTINA
46.2
21%
CHINA
14.0
6%
SUBTOTAL
194.1
88%
REST
26.4
12%
220.5
100%
TOTAL Source: SOYSTAT- USDA
ARGENTINA
REASONS FOR THE DEVELOPMENT OF BIOFUELS IN ARGENTINA •One of the main exporters of vegetable oil in the world. •The oil industry in Argentina is export - oriented, sending 95% of its production to the foreign market. (2008 crushing capacity : 160,000 tons/day). SOY OIL
6.1 Million Tons
SUNFLOWER OIL
1.7 Million Tons
OTHERS
0.1 Million Tons
TOTAL
7.9 Million Tons
Source: CIARA
ARGENTINA
Plants by crushing capacity
Crusging Capacity by Province (Share of total)
Córdoba, 11%
Buenos Aires, 8%
Otras, 1%
Santa Fe, 81%
Crushing capacity tons/day < 1000 1 0 0 1 to 1 6 0 0 0 1 6 0 0 1 to 3 1 0 0 0 > 31001
ARGENTINA
REASONS FOR THE DEVELOPMENT OF BIOFUELS IN ARGENTINA
ARGENTINA IS THE No 1 EXPORTER AND No 3 WORLD PRODUCER OF SOY OIL
THE No 1 EXPORTER AND No 2 PRODUCER OF SUNFLOWER OIL IN THE WORLD
ARGENTINA
MAIN TOOL FOR THE DEVELOPMENT OF BIOFUELS IN ARGENTINA – LAW 26093 • The creation of a legal framework for the development of this new industry.
•
The Argentine Congress approved on April 19th, 2006 a law to promote the use and production of biofuels in the country. The biofuels involved are: biodiesel, ethanol and biogas.
ARGENTINA
MAIN ASPECTS OF THE LAW • 5% mandatory use of biodiesel and ethanol in all diesel oil and gasoline consumption, beginning January 1, 2010. Currently is 7% for biodiesel.
• Creation of a National Authority (N.A.) for the evaluation and support of projects for the production of biofuels.
• The functions of the N.A are, among others: •
To establish biofuels quality standards.
•
To establish the criteria for the approval of projects in order to obtain the benefits established by the law.
• The law prioritizes projects that follows these criteria: •
Sponsored by small and medium sized companies.
•
Belong to farming producers.
•
Located in regional and rural economies.
ARGENTINA
AVAILABILITY OF RAW MATERIAL FOR BIOFUELS PRODUCTION IN ARGENTINA
ARGENTINA
ARGENTINE GRAIN PRODUCTION Argentine Grain Production - in million tons 120,0
95,0
100,0 84,5 80,0 67,4
69,2
70,8
97,3
95,0
76,5
69,4 62,0
60,0
40,0
20,0
2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 (*)
Source: Ministry of Agriculture, livestock and fisheries of Argentina (*) Estimated
ARGENTINA
ARGENTINE GRAIN PRODUCTION Argentine total grain production for the 2007/2008 reached 95,0 million tons. SOY, CORN and WHEAT account for almost 90% of total grain production. Total Grain Production 2007/2008 season: Grain
Planted area
Production
Share
million hectares
million tons
%
SOY
16.6
46.2
47%
CORN
4.2
22.0
23%
WHEAT
6.0
16.3
17%
SUNFLOWER
2.6
4.7
5%
SORGHUM
0.8
2.9
3%
OTHERS
1.8
5.2
5%
TOTAL
32.0
97.3
100%
Source: Ministry of Agriculture, Livestock and Fisheries - Argentina ARGENTINA
ARGENTINE GRAIN PRODUCTION
Soybean Production Campagne 2007 – 2008 46.2 million tons Argentine Soybean Production - in million tons 60.0 53.0 50.0
250 kms.
46.2 40.5
85%
40.0
30.0 20.1
20.0 10.9 10.0 3.8 1980 /81
1990 /91
1999 /00
2005 /06
2007 /08
2009/2010
Source: Ministry of Agriculture, livestock and fisheries of Argentina2009/2010 projected
ARGENTINA
MAIN IMPACTS EXPECTED FROM THE LAW BIODIESEL With the implementation of the 7% mandatory use of biofuels, the needed production in 2011 is: •
Biodiesel: 1.2 million tons
• Vegetable oil: 1.2 tons (17% of total current production). • Soybean seed contains 18% oil, and 77% protein meal Rest, 5%
Oil, 18%
Meal, 77% ARGENTINA
RECENT DEVELOPMENTS 23 Biodiesel plants Total production capacity : 2,5 million tons. Total Investments: US$ 500 million Argentine Biodiesel Markets - in thousand tons 2,500
Domestic 2,000
800
Export
1,500
1150 1,000
725 1200
500
168 0 2007
2008
2009
Source: Department of Energy and CARBIO (*) Projected
2010 (*)
ARGENTINA
RAW MATERIAL FOR THE PRODUCTION OF ETHANOL ETHANOL With the implementation of the 5% mandatory use of ethanol, the needed production is:
• Ethanol : 250.000 tons. • Quantity of corn/sorghum needed = 550.000 tons (2,5% of total current production) Currently total production of Ethanol is from Sugar Cane
ARGENTINA
SUSTAINABILITY OF BIOENERGY Member of the Global Bioenergy Partnership (GBEP) – Participation on the definition of criteria and indicators for sustainable production of bioenergy (environmental, social, economic and energy indicators). EU Directive on Renewable Energy - JRC-DGEN- INTA Document. Establishment of a Working Group for measurement of GHGs – MINAGRI - MinCyT- Universities and Research Centers. Participation in Public Consultations related to the sustainability of bioenergy (eg EU and U.S.A). Implementation of WISDOM methodology (S&D of biomass resources). Tool for decision making. ARGENTINA
CONCLUSIONS
ARGENTINA
CONCLUSIONS
• Argentina has ideal growing conditions for the sustained development of the raw materials needed for the production of biofuels.
• Argentina has immediate availability of the raw material needed to cover the 5%-10% of mandatory use in all gasoline and diesel consumption.
• Argentina would become one of the major producers of biofuels worldwide.
ARGENTINA
CONCLUSIONS • From the economic and social point of view, the development of the Argentine biofuels industry is: • Creating a new industry in our country.
• Adding value to grain and vegetable oil production since Argentina exports 70 percent of the corn and 90 percent of the vegetable oil that it produces.
• Having a favorable impact on the environment.
ARGENTINA
MAIN CHALLENGES AHEAD
ARGENTINA
MAIN CHALLENGES AHEAD • To monitor on a permanent basis, issues related to quality, safety and environment.
• To promote research and development to reduce costs of biofuels and to make more efficient use of the biomass produced.
• To encourage the use of biotechnology for the development of new varieties of feedstocks for the production of biofuels.
• To support the interaction between private and public companies, scientific and technological organizations and public organizations.
• To become one of the main producers and exporters of biofuels worldwide, adding value to current agricultural exports. ARGENTINA
HOW TO CONTACT US
Ministry of Agriculture, livestock and Fisheries of Argentina Paseo Colón 982 – 2nd. Floor - Office 219 – Buenos Aires Miguel Almada Phone: (5411) 4349-2226 / 2111 E-mail: [email protected] Website: www.minagri.gob.ar ARGENTINA
ARGENTINA
ARGENTINA
PRESENTATION
•Energy sector in Argentina. •Reasons for the development of biofuels in Argentina. •Law Nº 26093: main objectives. •Availability of raw material for biofuels production. •Recent developments in the Argentine biofuels sector. •Conclusions and challenges ahead.
ARGENTINA
ARGENTINE ENERGY CONSUMPTION BY SOURCE
Hydro 6%
Nuclear 2%
Coal 2%
Natural Gas 41%
Others 4%
Oil 45%
Source: Department of Energy, Argentina
ARGENTINA
LIQUID FUELS - CONSUMPTION
GASOLINE 17%
CNG 17%
DIESEL OIL 66%
Fuente: Secretaría de Energía Argentina imports 3 to 4% of total diesel oil ARGENTINA
REASONS FOR THE DEVELOPMENT OF BIOFUELS IN ARGENTINA WORLD SOYBEAN PRODUCTION 2008:
Country
Production
Share
million tons
%
USA
72.9
33%
BRAZIL
61.0
28%
ARGENTINA
46.2
21%
CHINA
14.0
6%
SUBTOTAL
194.1
88%
REST
26.4
12%
220.5
100%
TOTAL Source: SOYSTAT- USDA
ARGENTINA
REASONS FOR THE DEVELOPMENT OF BIOFUELS IN ARGENTINA •One of the main exporters of vegetable oil in the world. •The oil industry in Argentina is export - oriented, sending 95% of its production to the foreign market. (2008 crushing capacity : 160,000 tons/day). SOY OIL
6.1 Million Tons
SUNFLOWER OIL
1.7 Million Tons
OTHERS
0.1 Million Tons
TOTAL
7.9 Million Tons
Source: CIARA
ARGENTINA
Plants by crushing capacity
Crusging Capacity by Province (Share of total)
Córdoba, 11%
Buenos Aires, 8%
Otras, 1%
Santa Fe, 81%
Crushing capacity tons/day < 1000 1 0 0 1 to 1 6 0 0 0 1 6 0 0 1 to 3 1 0 0 0 > 31001
ARGENTINA
REASONS FOR THE DEVELOPMENT OF BIOFUELS IN ARGENTINA
ARGENTINA IS THE No 1 EXPORTER AND No 3 WORLD PRODUCER OF SOY OIL
THE No 1 EXPORTER AND No 2 PRODUCER OF SUNFLOWER OIL IN THE WORLD
ARGENTINA
MAIN TOOL FOR THE DEVELOPMENT OF BIOFUELS IN ARGENTINA – LAW 26093 • The creation of a legal framework for the development of this new industry.
•
The Argentine Congress approved on April 19th, 2006 a law to promote the use and production of biofuels in the country. The biofuels involved are: biodiesel, ethanol and biogas.
ARGENTINA
MAIN ASPECTS OF THE LAW • 5% mandatory use of biodiesel and ethanol in all diesel oil and gasoline consumption, beginning January 1, 2010. Currently is 7% for biodiesel.
• Creation of a National Authority (N.A.) for the evaluation and support of projects for the production of biofuels.
• The functions of the N.A are, among others: •
To establish biofuels quality standards.
•
To establish the criteria for the approval of projects in order to obtain the benefits established by the law.
• The law prioritizes projects that follows these criteria: •
Sponsored by small and medium sized companies.
•
Belong to farming producers.
•
Located in regional and rural economies.
ARGENTINA
AVAILABILITY OF RAW MATERIAL FOR BIOFUELS PRODUCTION IN ARGENTINA
ARGENTINA
ARGENTINE GRAIN PRODUCTION Argentine Grain Production - in million tons 120,0
95,0
100,0 84,5 80,0 67,4
69,2
70,8
97,3
95,0
76,5
69,4 62,0
60,0
40,0
20,0
2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 (*)
Source: Ministry of Agriculture, livestock and fisheries of Argentina (*) Estimated
ARGENTINA
ARGENTINE GRAIN PRODUCTION Argentine total grain production for the 2007/2008 reached 95,0 million tons. SOY, CORN and WHEAT account for almost 90% of total grain production. Total Grain Production 2007/2008 season: Grain
Planted area
Production
Share
million hectares
million tons
%
SOY
16.6
46.2
47%
CORN
4.2
22.0
23%
WHEAT
6.0
16.3
17%
SUNFLOWER
2.6
4.7
5%
SORGHUM
0.8
2.9
3%
OTHERS
1.8
5.2
5%
TOTAL
32.0
97.3
100%
Source: Ministry of Agriculture, Livestock and Fisheries - Argentina ARGENTINA
ARGENTINE GRAIN PRODUCTION
Soybean Production Campagne 2007 – 2008 46.2 million tons Argentine Soybean Production - in million tons 60.0 53.0 50.0
250 kms.
46.2 40.5
85%
40.0
30.0 20.1
20.0 10.9 10.0 3.8 1980 /81
1990 /91
1999 /00
2005 /06
2007 /08
2009/2010
Source: Ministry of Agriculture, livestock and fisheries of Argentina2009/2010 projected
ARGENTINA
MAIN IMPACTS EXPECTED FROM THE LAW BIODIESEL With the implementation of the 7% mandatory use of biofuels, the needed production in 2011 is: •
Biodiesel: 1.2 million tons
• Vegetable oil: 1.2 tons (17% of total current production). • Soybean seed contains 18% oil, and 77% protein meal Rest, 5%
Oil, 18%
Meal, 77% ARGENTINA
RECENT DEVELOPMENTS 23 Biodiesel plants Total production capacity : 2,5 million tons. Total Investments: US$ 500 million Argentine Biodiesel Markets - in thousand tons 2,500
Domestic 2,000
800
Export
1,500
1150 1,000
725 1200
500
168 0 2007
2008
2009
Source: Department of Energy and CARBIO (*) Projected
2010 (*)
ARGENTINA
RAW MATERIAL FOR THE PRODUCTION OF ETHANOL ETHANOL With the implementation of the 5% mandatory use of ethanol, the needed production is:
• Ethanol : 250.000 tons. • Quantity of corn/sorghum needed = 550.000 tons (2,5% of total current production) Currently total production of Ethanol is from Sugar Cane
ARGENTINA
SUSTAINABILITY OF BIOENERGY Member of the Global Bioenergy Partnership (GBEP) – Participation on the definition of criteria and indicators for sustainable production of bioenergy (environmental, social, economic and energy indicators). EU Directive on Renewable Energy - JRC-DGEN- INTA Document. Establishment of a Working Group for measurement of GHGs – MINAGRI - MinCyT- Universities and Research Centers. Participation in Public Consultations related to the sustainability of bioenergy (eg EU and U.S.A). Implementation of WISDOM methodology (S&D of biomass resources). Tool for decision making. ARGENTINA
CONCLUSIONS
ARGENTINA
CONCLUSIONS
• Argentina has ideal growing conditions for the sustained development of the raw materials needed for the production of biofuels.
• Argentina has immediate availability of the raw material needed to cover the 5%-10% of mandatory use in all gasoline and diesel consumption.
• Argentina would become one of the major producers of biofuels worldwide.
ARGENTINA
CONCLUSIONS • From the economic and social point of view, the development of the Argentine biofuels industry is: • Creating a new industry in our country.
• Adding value to grain and vegetable oil production since Argentina exports 70 percent of the corn and 90 percent of the vegetable oil that it produces.
• Having a favorable impact on the environment.
ARGENTINA
MAIN CHALLENGES AHEAD
ARGENTINA
MAIN CHALLENGES AHEAD • To monitor on a permanent basis, issues related to quality, safety and environment.
• To promote research and development to reduce costs of biofuels and to make more efficient use of the biomass produced.
• To encourage the use of biotechnology for the development of new varieties of feedstocks for the production of biofuels.
• To support the interaction between private and public companies, scientific and technological organizations and public organizations.
• To become one of the main producers and exporters of biofuels worldwide, adding value to current agricultural exports. ARGENTINA
HOW TO CONTACT US
Ministry of Agriculture, livestock and Fisheries of Argentina Paseo Colón 982 – 2nd. Floor - Office 219 – Buenos Aires Miguel Almada Phone: (5411) 4349-2226 / 2111 E-mail: [email protected] Website: www.minagri.gob.ar ARGENTINA
