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Bioenergy in Brazil

Carlos H de Brito Cruz Scientific Director The São Paulo Research Foundation, FAPESP http://www.fapesp.br http://bioenfapesp.org

1 20120805 FAPESP BIOEN

http://www.fapesp.br/

http://bioenfapesp.org/

Brazil: 190 million people, 6th GNP


Brazil

0%

10%

20%

30%

40%

50%

60%

Non-Renewable Renewable

En

erg

y s

ou

rces i

n B

razil,

2006

47% of Brazil’s energy comes from renewable sources (2009)

20120805 3

cane

18%

Renewables in Brazil: 47%; World: 13%; OECD: 7,2%

FAPESP BIOEN

Energy from renewable sources Some industrialized countries

4 20120805

Source: IEA, Renewables Factsheet, 2007

FAPESP BIOEN

Ethanol in Brazil

5 20120805 5

Sugarcane in Brazil: 1532

Mandated addition of Ethanol to fuel: 1929

FAPESP BIOEN

Brazil: Ethanol production 1948-2008

6 20120805

• 1975: Proalcool Program

• 2003: Flex-fuel vehicles – 90% of new vehicle sold are Flex

• Gasoline has 20-25% Ethanol added – No pure gasoline in Brazil

• 33,000 gas+ethanol stations (out of 36,000)

• Brazil is 2nd largest ethanol producer

Gasoline is the

ALTERNATIVE fuel in Brazil FAPESP BIOEN

95% of cars sold monthly are Flex-Fuel (FF

in Brazil: E10 – E100)

7 20120805

First FF cars

launched

95%

cars sold

in Apr09

FAPESP BIOEN

Consumer Power


SUGARCANE CHARACTERISTICS

FAPESP BIOEN 9 20120805

Sugarcane energy content

10 20120805

• 1 Ton of Cane = 1,2 Barrels of Oil

• Sucrose → Ethanol

• Bagasse → burnt for heat for the mill and electricity sold to the grid

• Leaves and Stalks → burnt on the field – Burning phasing out in SP until 2014/2017

Bagasse

Cellulose

Sucrose

Leaves

and Stalks

Cellulose

FAPESP BIOEN

Biofuel yield per hectare

11 20120805

FAO, “The state of agriculture 2008”

Ethanol

Biodiesel

FAPESP BIOEN

Energy balance

12 20120805

0

2

4

6

8

10

12

Sugar

cane

Sugar

Beet

Wheat

Straw

Corn WoodEn

erg

y O

utp

ut

per

Fo

ssil E

nerg

y In

pu

t

FAPESP BIOEN

GHG reduction

13 20120805

Doornbosch and Steenblik, OECD 2007

FAPESP BIOEN

GHG and Energy Balance: evolving knowledge

14 20120805

Macedo IC, Seabra JEA, Silva JEAR. Green house gases emissions in the production

and use of ethanol from sugarcane in Brazil: The.... Biomass and Bioenergy (2008),

doi:10.1016/j.biombioe.2007.12.006

Goldemberg J et al., “Energy Balance for Ethyl Alcohol Production

from Crops”, Science 2001 p. 903-906 (1978)

FAPESP BIOEN

Increase in productivity through R&D

15 20120805

40

50

60

70

80

90

1975 1980 1985 1990 1995 2000 2005

Pro

du

ctiv

ity

(tc

/ha

or

lts/

tc)

lts de álcool/tc

tc/hectare

0

2.000

4.000

6.000

8.000

1975 1980 1985 1990 1995 2000 2005

Pro

du

ctiv

ity

(li

ters

/hec

tare

)

Agricultural and Industrial product. Total productivity

+ 4% per year

FAPESP BIOEN

R&D: Increasing number of Sugarcane varieties used in Brazil

16 20120805

1984 1994 2003

Developed by 3

research

organizations

– CTC

– Ridesa

– IAC

Plus private

companies

– Alellyx

– Canaviallis Now Monsanto

FAPESP BIOEN

Biofuels costs

17 20120805

World Watch 2006, http://www.worldwatch.org/system/files/EBF008_1.pdf

FAPESP BIOEN

Cost per tonne of reduced GHG


Source: Biofuels for Transport, IEA, 2004

Brazil: 1,5% of arable land displaces 30%+ of the gasoline


Source: UNICA, with data from IBGE 2006

Sugarcane for ethanol uses 0,6% of total area

20 20120805

Area used for sugarcane for ethanol (4,8

MHa, 0,6%)

Area used for agriculture (76,7 MHa, 9%)

Rural properties area (355 MHa, 42%)

Total country area (851 MHa, 100%)

Source: Horta Nogueira e Seabra (2008)

modified for 2008 data

Small bioenergy footprint

FAPESP BIOEN

Where does Brazil plant Sugarcane?

• Not in the Amazon

• Best land for cane: – Northeast coast

• Oldest (XVI century)

– Southeast

• highest productivity

– Centralwest

• main expansion area

20120805 21

>82 ton/ha

55 ton/ha

2050: Available land for biofuels (Doornbosch and Steenblik, 2007)

22 20120805

Land (in Gha) North Am.

South &

Centr. Am.

Europe &

Russia Africa Asia Oceania World

Total land surface 2,1 2,0 2,3 3,0 3,1 0,9 13,40

1 Apt for Rainfed cultivation 0,4 0,9 0,5 0,9 0,5 0,1 3,30

2 Apt and Under forest 0,1 0,3 0,1 0,1 0,0 0,0 0,80

3 Apt, already in use 0,2 0,1 0,2 0,2 0,6 0,1 1,50

4 Necessary for food, housing and

infrastructure until 2030/50

0,0 0,1 0,0 0,1 0,1 0,0 0,30

5 Available (Gross) [5=1-2-3-4] 0,00 0,25 0,08 0,44 -0,07 0,04 0,74

6 % for grassland 0% 0% 50% 60% n/a 0%

7 Additional land potentially available

(7)=(5)x(1-% for grassland)

0,00 0,25 0,04 0,18 -0,07 0,04 0,44

a. Most studies assume that only a small fraction of additional land is needed to feed the world’s growing population — from 6.5 billion people at

present to 9 billion people in 2050 — and that most of the increase in food requirements will be met by an increase in agricultural productivity.6 Here

it is assumed that 0.2 Gha is needed for additional food production (based on Fisher and Schrattenholzer, 2001 where a yearly increase in agricultural

productivity of 1.1% is assumed); the remainder (roughly 0.1 Gha) is needed for additional housing and infrastructure.

b. A negative number is shown here as more land is cultivated than potentially available for rain-fed cultivation because of irrigation. The negative land

available has not been rounded to zero because food imports are likely to be needed from other region with implications on their land use.

c. Numbers in this column don’t add up because of rounding.

So. Centr. Am: 0.25GHa @ 10kL/Ha.yr 2,500GL /yr (in 2005: 40 GL)

FAPESP BIOEN

Reference quantities

2004 2050

Gasoline consumption (1) 1,200 GL 2,200 GL

Ethanol consumption 30 GL

Ethanol substituting 10% gasoline 265 GL

Ethanol substituting 100% gasoline 2,650 GL (1) Source: National Energy Information Center (NEIC)

20120805 23

Area available in South & Central America by 2050: 0,25 Gha

Area available in Africa by 2050: 0,18 Gha

(both according to Doornbosch & Steenblik, OECD, 2007)

0.43GHa @ 5 kL/Ha.yr 2,015 GL /yr (in 2005: 40 GL)

Potential for substituting for 76% of the world gasoline demand considering the

available area in South and Central America and Africa

FAPESP BIOEN

Energy sources in the State of São Paulo, Brazil

24 20120805

State of São Paulo • 55% of Brazilian

ethanol

• 41 million people

• 35% of Brazil’s GNP

1980 – 2008

• Oil down from 60%

to 33%

• Cane up from 17%

to 38%

FAPESP BIOEN

Fapesp: São Paulo Research Foundation

• Mission: support research in all fields • Receives 20,000 proposals per year, all peer reviewed • Funded by the State of São Paulo with 1% of all state tax

revenues • Started operations in 1962 • Annual budget: US$ 600 M in 2011

– Fellowships (3,000 SI, 2,500 MS, 4,000 DR, 1,800 PD) – Academic R&D

• Young Investigators

– University-Industry Joint R&D – Small bussiness R&D

• 1,200 SBE’s (two awards per week in 2011)


Bioenergy: three research initiatives at FAPESP

• Scientific and Technology roadmap – Research Project in our Public Policy Program

• BIOEN – Research program; 10 years

– Basic research core

– Conections to application through partnership with companies

• Bioenergy State Research Center – Hubs in the three state universities – USP, Unicamp, Unesp

– Funding: State Government, FAPESP and the Universities

– Graduate course in Bioenergy – 3 state universities


Sugarcane research


State of São Paulo Bioenergy R&D – BIOEN

• Academic Basic and Applied Research

– Advancement of knowledge – US$ 35M

• Plus US$ 75 M (10 years) for a statewide Research Center

– Young Investigator Awards – US$ 6 M

• Open to young foreign scientists who want to come to Brazil

• Joint industry-university research (5 years)


BIOEN: FAPESP-Industry agreements for joint funding

• Joint industry-university research (next 10 years)


Company Subject Val. (Indus.+FAPESP)

Oxiteno Lignocellulosic materials R$ 6,000,000

Braskem Alcohol-chemistry R$ 50,000,000

ETH Sugarcane R$ 20,000,000

Boeing Aviation Biofuels

BP Processes and Sustainability R$ 100,000,000

Microsoft Algorithms for gene sequencing

Peugeot-Citroen

Biofuel based engines R$ 16,000,000

Energy consumption OECD and Non-OECD

31 20120805 Source: International Energy Outlook 2009

Estimate for 2010

FAPESP BIOEN

State of São Paulo, Brasil

20120805 32

34% of Brazil’s GNP

40 Million people

50% of Brazilian science

13% of State budget to HE

and R&D

1,5% GNP for R&D

3 State Universities

19 Tech Faculties

45% of the PhDs formed in

Brazil (4,500 in 2008)

19 State Research

Institutes

1 Research Foundation

65% of R&D public support

comes from State

sources FAPESP BIOEN

http://www.guianet.com.br/guiacidades/

Ethanol costs x Gasoline

33 20120805

0

5

10

15

20

25

30

35

1980 1985 1990 1995 2000 2005 2010

Eth

an

ol

an

d G

aso

lin

e co

st

(in

20

04 U

S$ p

er G

J)

Ethanol price paid to producers (2004 US$/GJ )

Rotterdam regular gasoline price (2004 US$/GJ)

Source: Goldemberg, 2005 FAPESP BIOEN

FAPESP’s Research Program on Bioenergy (BIOEN): 5 areas

• Improvements in the feedstock: building a better cane plant for energy - EnergyCane

• Production of Ethanol and other products: hydrolysis, pyrolisis, gasification, fermentation, distillation

• New processes in alcohol-chemistry

• Ethanol based engine and fuel cell developments

• The Economics of Ethanol, Ethanol production and the environment, Social impacts, the new agriculture of food and energy


Science based Sugarcane Agroecological Zoning in São Paulo


BIOEN: 314 scientists

• 56 research projects

• 314 scientists

– 229 from São Paulo

– 33 from other Brazilian states

• MG 12; RJ 8; Pr 3; RS 3

– 52 from other countries

• U.S. 26; Fr 7; Ge 4; Ne 4; De 3; Sp 3


Type of support Qty

2-year grants 20

5-year grants 29

Young Investigators 7

Industry-University 11

Fellowships 132

Higher productivity sugarcane: 84 → 148 → 212 → 381 ton/Ha??


Transgenic cane: 9x increased convertion of glucose/fructose into sucrose


USP, Unicamp, CTC, Monsanto, Central de Alcool Lucélia

New processes and their integration


Sustainability research


FAPESP’s BIOEN keywords


Biofuel research challenges

• Productivity – Biomass production

• 90 ton/Ha → 200+ ton/Ha

– Processes 2nd generation; other fuels; chemicals – Cellulose use (eletricity x liquid fuel)

• Sustainability – Emissions(LUC, ILUC, N) – Water use – Agriculture for Food and for Energy – Environmental impacts – Social impacts

20120805 FAPESP BIOEN 43

Brazil: a large and successful experiment on planting fuel, since 1975

• Sugarcane has special characteristics – Productivity – GHG reduction – Favorable energy balance

• Brazilian strategy counts on many other countries producing Ethanol from various sources – Technology transfer; Cooperative R&D

• R&D strategy: more with less (less area, water, energy,...) • Potential large producers: Latin America and Africa

– Access to energy for developing countries

• Sustainability challenges and benefits – Government policy: benefits now or later?


Ethanol and Gasoline use in Brazil

47 20120805

Source: ANP, 2012 and author tabulations

FAPESP BIOEN

Oil production capacity 2011 and expected in 2020


Rationale

• Global Climate Change: Reducing GHG emissions

• Scarcity of resources

– Oil is finite, expensive and “complicated”

• Energy security (as Food Security)

– Each nation would like to generate its own energy, or at least most of it, or at least as much as possible of it while not having to pay too much for the rest and having a secure source


Main Research Initiatives in Cane and Ethanol in Brazil

• CTC: private center; assists industry

• Ridesa: public/private network for cane breeding

• IAC: state institute on agronomic research

• Universities: USP, Unicamp, Unesp, Ufscar, UFV

• INMETRO: Certification

• CTBE: Bioethanol Research Center

• EMBRAPA Agroenergy Center

• Fapesp Initiatives on Bioenergy


Challenges in Bioenergy in Brasil

• Productivity – Biomass production

– Conversion processes

– Cellulose uses: electricity x liquid fuel

• Sustainability – Emissions (LUC, ILUC, N)

– Water use

– The new agriculture of Food and Energy

– Environmental impacts

– Social impacts

– Economics: regulation, standards, certification

• Competition with Brazilian oil


0

5

10

15

20

25

30

35

40

6 10 13 18 21 26 31 50

Weeks after CO2

A (

µm

ol C

O2 m

-2 s

-1)

Ambiente

Elevado ******

***

*

(a)

Ambient

Elevated

Microarray analyses 5000

genes

Sugarcane in increased CO2

53 20120805

Buckeridge M. Et al. Plant Cell and Environment, vol.31, p. 1116 (2008)

Elevated Ambient Productivity

60% more Biomass

FAPESP BIOEN

Ethanol: World Production

54 20120805

• Brasil is 2nd largest producer

• In 2008:

– Brazil 42% (cane)

– USA 52% (corn)

• Brazilian production

– Sucrose: 1/3 of cane

– Cellulose used for energy

FAPESP BIOEN

Syntenic regions: rice, sorghum, two cane alleles

55 20120805

Rice

Sorghum

Cane Ssp_148

Cane Ssp_095

Blue, green and red are genes

Grey correspond to repetitive regions

M.Anne van Sluys et al., in preparation

FAPESP BIOEN

Sucrose related genes


205 GL of Ethanol will substitute for 10% of the world’s gasoline

2004 2025

Gasoline consumption 1,200 GL 1,700 GL




São Paulo: Land Use Change, 1970-2006

58 20120805

Forest

Agriculture

Pasture

Source: Boddey, R.M, “GHG Emission Mitigation Though Ethanol from Sugarcane in Brazil”, Circular Técnica Embrapa 27 (04/2009)

Sugarcane x Pasture:

fixation of 0,5 Mg C/ha.yr

FAPESP BIOEN

SUCEST: Gene Discovery and Functional Genomics

59 20120805

• Genes associated to traits of interest

• In association with planters R&D center – Sugarcane Transcriptome Project (University of São Paulo, USP)

• Over 1,000 trait genes (sucrose, herbivory, drought, nutritional responses) identified through genomics tools applied to the study of the Brazilian germplasm (Pat pending USPTO11/716,262)

– Sugarcane Molecular Marker Development Project (University of Campinas, UNICAMP)

• A functional map and markers associated to sucrose content developed for breeding populations

FAPESP BIOEN

R&D challenges for Brazil’s strategy - I

• Molecular Biology in sugarcane improvement

– Whole Genome Shotgun

– Networks, signals, transcriptome

• Targets

– 90 ton/Ha → 200 ton/Ha

– Sucrosis content; Water stress; Herbivory


R&D challenges for Brazil’s strategy - II

• Cellulosic Ethanol – Cell wall modification

– Characterization and development of physical, chemical pretreatment of bagasse for ligninocellulose hydrolysis

– Development of acid catalyzed and biocatalyzed saccharification

– Development of high performance cellulases and hydrolases

– Removal of fermentation inhibitors

– Development of microorganism strains

– Effluent disposal and environmental friendly accepted processes


Mechanical harvest avoids burning


Standards


High quality measurement standards

• Inmetro (Brazil) and NIST (EUA) exchange CRMs – Ethanol (Inmetro); Soy Biodiesel (NIST) for validation

• Project BIOREMA – CRMs with UE

64 20120805

Energy from renewable sources Some industrialized countries

65 20120805

Source: IEA, Renewables Factsheet, 2007

FAPESP BIOEN

Production and Sales of Ethanol based Automobiles

66 20120805

Subsidies end

Flex-fuel cars

lauched

FAPESP BIOEN

FAPESP (The São Paulo Research Foundation): SUCEST Program, 1999

• Started 1999

• Molecular Biology tools for improving sugarcane

• Science and Technology of sugarcane – Articles, thesis and patents

– Human resources

20120805 67

SUCEST Project FAPESP, 1999 - 2004

68 20120805

50 labs

200 researchers

238000 ESTs

43000 Transcripts

FAPESP BIOEN

SUCEST-FUN Project

69 20120805

Herbivory

Endophytes

ABA

MeJA

Phosphate

Drought

CO2

Lignin

Fiber

Sucrose

Biomass

Sugars

FAPESP BIOEN

Maps and Markers


R&D for improving the sugarcane plant

• Traditional genetics and processes – 1.3 x in liters/ton

– 1.6 x in ton/ha

– Total productivity gain of 2.2 x in 30 years • Saved area: 4 Mha (4 x Brazil’s area for oranges)

• Next: Genomics based plant improvement – Functional genomics

– Target: full sugarcane genome


Biotechnology + Breeding knowledge

• Target genes which migh help in – Increasing yield, and

– Expansion to pasture land (subject to extended drought season)

– Easing the need for expansion of planted area

• The SUCEST-FUN Database – an integrated database for sequences, expression

data, markers, germplasm and transgenics characteristics


0%

10%

20%

30%

40%

50%

60%

Non-renewable Renewable

Outras Renováveis

Lenha e Carvão Vegetal

Energia Hidráulica e Eletricidade

Produtos da Cana-de-açúcar

Urânio (U3O8) e Derivados

Carvão Mineral e Derivados

Gás Natural

Petróleo e Derivados


0

2

4

6

8

10

12

14

16

72/7

3

73/7

4

74/7

5

75/7

6

76/7

7

77/7

8

78/7

9

79/8

0

80/8

1

81/8

2

82/8

3

83/8

4

84/8

5

85/8

6

86/8

7

87/8

8

88/8

9

89/9

0

90/9

1

91/9

2

92/9

3

93/9

4

94/9

5

95/9

6

96/9

7

97/9

8

98/9

9

99/0

0

00/0

1

01/0

2

02/0

3

03/0

4

04/0

5

05/0

6

06/0

7Eth

ano

l pro

du

ctio

n (

bill

ion

lite

rs)

Incentives, mandatory blends, new technologies

Deregulation, Sugar Exports

Flex Fuel

Global Market ?

1973

Oil crisis & low

sugar prices.

1975

PROÁLCOOL

FIRST PHASE

Mandatory blend and

subsidies.

1978-1979 PROÁLCOOL – SECOND PHASE

Fiscal incentives and tax exemptions for ethanol

production and E-100 fueled cars. All gas stations must

obligatorily sell ethanol. Low ethanol prices (65% of

gasoline’s) guaranteed at the pump.

2003 FLEX FUEL

Flex fuel vehicles

begin to be sold.

Anhydrous

Hydrated

ETHANOL CRISIS at the end of the 80s

Oil prices down. Brazilian government cuts support.

Higher sugar prices affect ethanol production and sales of

E-100 cars went down rapidly

Phases in Brazilian Ethanol

74 20120805

Source: Datagro, 2006. Elaboration: Icone and UNICA

FAPESP BIOEN

The consumer’s view


Sugarcane: Ethanol AND Electricity

76 20120805

(Source: UNICA)

Itaipu is the 2nd largest dam in the world

FAPESP BIOEN

Agricultural workers in Brazil

• 2,773,885 agricultural workers in 2008

– 23% in sugarcane

– 17% in coffee

– 8% in corn

77 20120805

Source: Marcia Azanha, “Biofuels and

Social Inclusion”, www.fapep.br/gsb

FAPESP BIOEN

Sugarcane agricultural workers schooling and labour rights

• In agriculture in Brazil – 4 years of schooling

• Sugarcane – 4.3 years of schooling

– 24% illiterate

• In Agriculture – 40%

• In Sugarcane – 81%

• In Sugarcane in SP – 95%

• Entitled to – Unemployment insurance

– Paid annual vacation

– Extra mont pay (13º)

78 20120805

Source: Marcia Azanha, “Biofuels and

Social Inclusion”, www.fapep.br/gsb

FAPESP BIOEN

Children of sugarcane workers gain more years of education

79 20120805

Pessoa de Referência - Agricultura

0,00 10,00 20,00 30,00 40,00 50,00 60,00 70,00 80,00 90,00 100,00

1992

2008

Sem instrução e menos de 1 ano De 1 a 4 anos De 5 a 8 anos

De 9 a 11 De 12 ou mais Sem declaração

Filho - Agricultura

0,00 10,00 20,00 30,00 40,00 50,00 60,00 70,00 80,00 90,00 100,00

1992

2008



Pessoa de Referência - Cana

0,00 10,00 20,00 30,00 40,00 50,00 60,00 70,00 80,00 90,00 100,00

1992

2008



Filho - Cana

0,00 10,00 20,00 30,00 40,00 50,00 60,00 70,00 80,00 90,00 100,00

1992

2008



Ag

ric

ult

ure

ex

cl.

ca

ne

S

ug

arc

an

e

Parents Sons and daugthers > 18

yrs

9 to 11 yrs

9 to 11 yrs

Source: Marcia Azanha, “Biofuels and Social

Inclusion”, www.fapep.br/gsb

FAPESP BIOEN

Conclusion

• Large scale biofuels are possible now – Latin America an Africa have land for 1st generation

technology to suceed

– New science can make it even easier

• S&T advances will make biofuels more widely available – Especially for countries with less available land

• In LA and Africa biofuels can be a gateway to growth, development and social inclusion


Agroecological Zoning, Brazil: available area for cane


Relevant organizations

• The São Paulo State Research Foundation, FAPESP: http://www.fapesp.br/english/

• FAPESP’s Bioenergy Research Program (BIOEN): http://bioenfapesp.org/

• FAPESP’s portfolio of Bioenergy projects as of 2006:

http://www.fapesp.br/publicacoes/livro_etanol_ing.pdf

• Sugarcane Planters Association, UNICA: http://www.unica.com.br

• Center for Sugarcane Research, CTC: http://www.ctc.com.br

• EMBRAPA Agroenergy: http://www.cnpae.embrapa.br/

• Instituto Agronômico de Campinas, Centro de Pesquisa em Cana:

http://www.iac.sp.gov.br/Centros/CentroCANA/PRINCIPAL.htm


http://www.fapesp.br/english/

http://bioenfapesp.org/

http://www.fapesp.br/publicacoes/livro_etanol_ing.pdf

http://www.unica.com.br/

http://www.ctc.com.br/

http://www.cnpae.embrapa.br/

http://www.iac.sp.gov.br/Centros/CentroCANA/PRINCIPAL.htm

615 GL of Ethanol will substitute for 30% of the world’s gasoline

2004 2025

Gasoline consumption 1,200 GL 1,700 GL



20120805 84

Área disponível no Brasil: 60 Mha (Zoneamento para Cana, Set 2009,

aptidão Alta e Média)

@ 10 kL/Ha (usando somente sacarose da cana) 600 GL por ano

@ 20kL/Ha (usando sacarose e celulose) 1.200 GL/ano

FAPESP BIOEN

From government regulation...

• 1930-1960: government intervention – Quotas, prices and criteria for comercialization

– WW II – 20% ethanol added to gasoline

– 1946: quotas by state quotas according to state consumption (sugar)

20120805 85

Num

ber

of

mill

s

Source: “M.A.F. Moraes, “The

deregulation of the sugar-ethanol

sector in Brazil”, Doctorate Thesis,

ESALQ, USP (1999)

FAPESP BIOEN

...to more government regulation...

• 1970-1990 – 1971: Technology for sugar productivity

• PLANALSUCAR: breeding, mill efficiency

• Industrial concentration; mergers

– 1972: Brazil 1st sugar producer in the world

– 1973: 1st oil shock

– 1975: ProAlcool (9/10/1975)

• Government support for new mills and plantations

• 20% ethanol added to gasoline

– 1980: 76% of cars sold were ethanol driven 90% in 1983

– 1990: macroeconomic crisis, ethanol shortage end of subsidies

20120805 86

Source: “M.A.F. Moraes, “The

deregulation of the sugar-ethanol

sector in Brazil”, Doctorate Thesis,

ESALQ, USP (1999)

FAPESP BIOEN

....to Deregulation

• 1990 onwards

– 1996: announcement of end of prices control

– 1999: end of price control

– 2003: reduced taxation for Flex-Fuel vehicles

– Private sector organization • UNICA, ORPLANA, ...

– Sustainability issues • Plantation burning for harvesting

• Zoning


Less land, less water, less carbon, renewable energy source

• Ethanol from sugarcane

– Less land: - 4% per year

– Less water: reuse

– Less pollution • Reduces fossil fuel use

• Reduces Carbon emissions

– Use less energy

88 20120805

“Our goal is to figure out how to

produce more with less land,

less water and less pollution,

so we won't be the only species

left living on this planet.”

Jason Clay, WWF

FAPESP BIOEN

Ethanol mills can “produce” water

89 20120805

Quinta-feira, Julho 03, 2008 (http://ethanolbrasil.blogspot.com/2008/07/dedini-launches-ethanol-mill-that.html)

Dedini launches ethanol mill that produces water.

Reuters, 07/03/2008.

Brazil's Dedini, the leading manufacturer of biofuel equipment, launched a new

technology that enables cane-based sugar and ethanol mills to produce water as a

byproduct.

Mills in Sao Paulo, Brazil's largest and most efficient cane producing state, consume

currently about 1,800 liters of water from rivers or lakes to process each tonne of cane.

Through the use of water contained in cane, the new technology allows mills not only

to be self-sufficient but also to sell the product for domestic and industrial usage.

Each tonne of sugar cane contains about 700 kilograms of water. With the new

technology, mills could be able to sell up to 300 kilograms of this water per tonne of

cane.

FAPESP BIOEN

http://ethanolbrasil.blogspot.com/2008/07/dedini-launches-ethanol-mill-that.html



Increase in oil import costs in 1974

90 20120805

Source: UNICA, 2008

FAPESP BIOEN

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