argentine biodiesel market overvie · global production of biodiesel grew from 900k mton in 2001 to...
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Argentine Biodiesel Market Overview
Victor A. Castro – Executive Director
ARGENTINE BIOFUELS CHAMBER- CARBIO
London, October 2010
BACC – BUSINESS NETWORKING DAY 2010
CARBIO
Gathers the largest producers and exporters of biodiesel in Argentina
Accounts for 95% of biodiesel production in the country
Sustainability issues are one of the major areas of focus of the group
Company tpy Technology Location
Ecofuel 240.000 Desmet + Lurgi Santa Fe
Explora 120.000 Local technology Santa Fe
Louis Dreyfus 300.000 Westfalia Santa Fe
Molinos 100.000 Desmet Ballestra Santa Fe
Patagonia Bioen. 250.000 Desmet Ballestra Santa Fe
Renova 480.000 Desmet + Lurgi Santa Fe
UnitecBio 230.000 Desmet + Lurgi Santa Fe
Vicentín 78.000 Local technology Santa Fe
Cargill 240.000 Lurgi Santa Fe
Viluco 200.000 Crown Iron Works S.del Estero
OUR PLANTS:
Global production of Biodiesel grew from 900K Mton in 2001 to 15MM Mton in 2009, at an annual growth rate of 42%
Supported by governments that seek to increase energetic independence and to reduce carbon emissions, it is estimated that the demand for biodiesel will reach 43MM Mton by 2020, at an annual growth rate of 10%
Europe is leading the production of Biodiesel with a participation of 49.8% of the total world production, followed by the American continent with 32.8 % and Asia Pacific with 12% (in 2009)
The main Biodiesel producer countries are Germany, France, Argentina, and Brazil. These countries together produce 68% of the world biodiesel
Source: www.prlog.org/10587288-global-biodiesel-market-analysis-and-forecasts-to-2020.html
WORLD PRODUCTION OF BIODIESEL
ARGENTINE MARKET
Argentine biodiesel production will reach almost 2MM Mton in 2010
The government launched a 5% mandatory blend (B5) on the local market in
March 2010, and increased it to B7 in September 2010
Several trials are being conducted by some Institutions in Argentina in order
to adopt bigger blends (B10 to B20)
Argentina will therefore use
at least 34% of its production
capacity to supply
the local market in 2010
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1,500
2,000
2007 2008 2009 2010 E
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Argentine Biodiesel Market
Local Market
Export Market
Argentina is the third larger producer and the first world exporter of soybean oil
It exports more than 90% of its soybean oil production (6 MM tpy, avg. for the
last 5 years)
The installed crushing capacity exceeds 50 MM tpy of soybean
It has an important raw material production capacity
The agricultural production is highly efficient and sustainable
Argentina possesses a great availability of suitable lands with agricultural
capacity, which gives the possibility of producing alternative oil crops, such as
Jatropha
Argentina – Ideal country to produce biodiesel
Installed Capacity Plants Installed Capacity
5 largest plants
COUNTRY Per dayMton
AnnualMM Mton
Number Average per plant (Mton/day)
Average per plant (Mton/day)
ARGENTINA 152.000 50.16 50 3.040 7.900
USA 154.827 51,09 71 2.181 2.350
BRAZIL 143.515 47.36 101 1.421 2.200
CHINA 42.00
ARGENTINE CRUSHING PLANTS ARE THE MOST EFFICIENT IN THE WORLD
Participation on the global market (%) Position Leader
2005/2008 2007/08 2007/08Soybean - Oil 55.5% 1st ArgentinaSoybean - Meal 46.6% 1st Argentina
Sunflower - Oil 29.7% 1st ArgentinaPeanut - Oil 27.8% 1st ArgentinaPeanut - Beans 22.1% 1st Argentina
Sunflower Meal 27.4% 2nd UkraineMaize 14.6% 2nd USASorghum 10.1% 2nd USASoybean - Beans 14.5% 3rd USA
Argentina is leader in the export of vegetable oils and meals
ARGENTINE BIODIESEL: GREENHOUSE GAS SAVINGS
Argentine biodiesel production has three distinctive characteristics, that result
in lower greenhouse gas emissions:
REDUCED LOCAL TRANSPORT (from farm to plant)
LOWER BIODIESEL PRODUCTION EMISSIONS
“NO-TILL” FARMING
EU-RED current default value for GHG savings from soy-biodiesel is set at 31%
compared with the emissions from diesel oil
This value has been calculated assuming soybased biodiesel is produced in
Europe from Brazilian soybeans. Therefore, it does not represent Argentine soy-
biodiesel GHG savings
ARGENTINE BIODIESEL: GREENHOUSE GAS SAVINGS
REDUCED LOCAL TRANSPORT: due to the proximity of the production areas
to the shipping ports on the Parana River
15km
330km
Argentina
Uruguay
Entre Rios
Santa FeCorrientes
RosarioRosarioRosarioRosarioRosarioRosarioRosarioRosarioRosario
San LorenzoSan LorenzoSan LorenzoSan LorenzoSan LorenzoSan LorenzoSan LorenzoSan LorenzoSan Lorenzo
Buenos AiresBuenos AiresBuenos AiresBuenos AiresBuenos AiresBuenos AiresBuenos AiresBuenos AiresBuenos Aires
This reduces transportation costs as
well as greenhouse gas
emissions
Average distance from farm to
plant is 250 Km (156 Mi)
Source: SAGPyA
ARGENTINE BIODIESEL: GREENHOUSE GAS SAVINGS
LOWER BIODIESEL PRODUCTION EMISSIONS:
Argentine biodiesel plants have lower GHG emissions due to a more efficient
usage of natural gas (compared with
the value used for calculating
RED default value)
ARGENTINE BIODIESEL: GREENHOUSE GAS SAVINGS
“NO-TILL” FARMING:
• Over 86% of Argentine soybeans is planted using no-till techniques
• No-till involves planting seeds without turning over the soil, using specialist
drilling equipment capable of cutting through carbon-rich crop residues
• No-till techniques, properly applied
under climatic and soil conditions typical
of Argentine soy cultivation areas,
significantly reduce GHG emissions
Recent studies by INTA, E4Tech and ISCC confirm that Argentine biodiesel
reduces greenhouse gas emissions by at least 56% compared to fossil fuels
ARGENTINE BIODIESEL: GREENHOUSE GAS SAVINGS
1. INTA, 2009. Análisis Comparativo del Consumo Energético y las Emisiones de GEI de la Producción de Biodiesel a base de Soja bajo Manejos de
Siembra Directa y Labranza Convencional Authors: Hilbert J.A; Donato L.B..; Muzio J.; Huerga I
2. ISCC ,2009. Pilot Project . Certification of Biomass and Bioenergy Calculation of GHG Emissions . Additional calculations for the process of oversea
distribution for the Argentinean biodiesel production - Meó Corporate Development GmbH
3. E4Tech, 2009. Assessment of greenhouse gas savings from soya biodiesel
1 2 3
ARGENTINE BIODIESEL: UPDATE ON CERTIFICATION
• The EU is the main market for Argentine biodiesel
• We must therefore demonstrate full compliance with European legislation
• CARBIO´s Executive Board of Directors took the decision to develop our own Certification Scheme, for biodiesel from soybeans produced in Argentina
• We seek recognition from the EC as a full Voluntary Certification Scheme under RED requirements
• Biodiesel from Argentina is sustainable. We are ready to demonstrate compliance with all sustainability criteria
Global need to diversify energy sources, plus the decrease in fossil oil
production, and the search for environmental friendly energies, have
promoted the strong growth of the biofuels industry
Argentina offers important competitive advantages to produce
biodiesel, based on the efficiency of its soybean complex
CARBIO's companies operate state-of-the art facilities, with a total
production capacity of 2 MM tpy, and growing
Argentine soybased biodiesel fulfils the most stringent quality,
safety, and environmental standards
FINAL CONSIDERATIONS
