June 2019

PRESENTATION CONTENTS

Energy consumption by source in Argentina

Reasons for the development of biofuels in Argentina

Recent developments in the Argentine biofuels sector

Conclusions

ENERGY MATRIX OF ARGENTINA

Department of Energy

9,4%

Fossil energy

Nuclear energy3,3%

87,3%

Increase the participation of renewable energy

Hydraulic4,1%

Nuclear2,8%

Natural Gas53,6%

Oil32,0%

Carbon1,3%

Wood1,0

Bagasse1,0%

Biofuel3,7%

Eolic0,2%

An abundance of varied ecosystems fuellingthe growth of diverse crops.

REASONS FOR THE DEVELOPMENT OF BIOFUELS IN ARGENTINA

SOYSTAT - USDA, 2016 – Ministry of Agroindustry

AGRO-ECOLOGICAL REGIONS

PRODUCTION SHARE

(million tons) (%)

113,0 32%

123,0 35%

53,0 15%

17,0 5%

306,0 86%

49,0 14%

TOTAL 355,0 100%

COUNTRY

REST

USA

BRAZIL

ARGENTINA

CHINA

SUBTOTAL

WORLD SOYBEAN PRODUCTION 2019/2020 projected

USDA, 2019– Ministry of Agroindustry

Ministry of Agroindistry, 2019

CROPS DEVELOPMENT IN ARGENTINA - SOYBEAN

0

10

20

30

40

50

60

70

1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017

Production and implanted area of soybean in Argentina- in million tons and in million hectars -

Production

Implanted area

Department of Energy - CARBIO

BIOFUELS DEVELOPMENT IN ARGENTINA – BIODIESEL

0

500

1000

1500

2000

2500

3000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

168

712

1179 13051625 1515

1141

1567

790

18001650

1401

510

802 940

856

1017

1021

1000 1170

1099

Argentine Biodiesel Markets- in thousand tons -

Domestic

Export

Soybean production:

• Sustainable Production, large “good practicesof cultivation” adopted .

• 95% No till production.

• 300 kms distance from the main soyproduction areas to the crushing/biodieselproduction facilities.

Soybean oil

Crushing facilities very efficient by scale andtecnology.

• Full port integrated.

Biodiesel from soybean

• Large scale factories. (exporters)

• Integrated to the crushing plants and ports bypipes.

ARGENTINE BIODIESEL – GREENHOUSE GAS SAVING

Argentine Biodiesel production model reduces

greenhouse gas emissions by 70% compared

to fossil fuels.

CARBIO and INTA, 2019

1. Total production in 2018 = 2 million 300 thousand tons. Domestic Market (45%) – 1050 thousand tons. International Market (55%) – 1250 thousand tons

2. Energy produced by kg of biodiesel (MAGyP, 2015) – 52,84 MJ3. GHG emissions for soybean biodiesel – 29,20 gCO2eq/MJ4. GHG emissions for diesel (UE RED) – 83,7 gCO2eq/MJ5. GHG emissions savings (national average) – 54,5 gCO2eq/MJ -70%

Soybean biodiesel1 Energy generated by

biodiesel annual

production

(MJ)

Saving GHG emissions

by biodiesel annual

production

(tnCO2-eq)

Domestic Market 55.482 millions 3 millions

International Market 66.050 millions 3,6 millions

(1) Balance of GHG emissions by soybean biodiesel respect to conventional diesel (UE-RED). Lower and higher

values associated with soybean biodiesel emissions without and with considering land use change,

respectively.

Bioenergy Sector, 2019

Cereals

Sugar cane

BIOFUELS DEVELOPMENT IN ARGENTINA - BIOETHANOL

Department of Energy

0

200

400

600

800

1000

1200

2010 2011 2012 2013 2014 2015 2016 2017 2018

117 166 220305 299 336 393,42

580528

20

169

371

479

717

550586

Production of Bioethanol - in thousand of m3 -

cereals

sugar cane

Argentina is a large agricultural producer of raw materials and manufactures

CONCLUSIONS

livestock

agriculture

forestry

=

From the economic and social point of view,the development of bioenergy in Argentina:

Adds value to the chain production,

Generates new industries and jobs,

Promotes energy security,

From the environmental point of view, thedevelopment of bioenergy in Argentina:

Reduces greenhouse gas emissions (GHG),

Diminishes soil and water pollution.

June 2019