sugar, alcohol mill and co-generation e

2010

Luiz Mineiro

São Paulo 55 (11) 9545.3833

Ribeirão Preto 55 (16) 9107.2915

[email protected]

copyright "©"

Brazil – 2010

Sugar, Alcohol Mill and Co-generation

Northwest - State of Sao Paulo - Brazil

BRAZIL Agribusiness & Engineering

46,Square Americ Jacobin – Sao Paulo – SP – Brazil

Office City - Sao Paulo +55 ( 11 ) 9545.3833 and Office City Ribeirao Preto +55 ( 16 ) 9107.2915

@mail: [email protected] Skype: luiz.mineiro.brazil

Usina de Álcool , Açúcar e Co-Geração

1.1 - DECLARATION

Sugar, Alcohol and Co-generation Company

The agri-industry complex that today includes the group was the

pioneer of the sugar and ethanol in the northwest of Sao Paulo.

This is the initial sign of an economic project that has not stopped

growing.

In 1977 begins in a promising market for ethanol and the production of alcohol ethanol and hydrated to supply the national

fleet of vehicles and industries, the first factory in the region to

produce ethanol.

The plant has always followed the developments and trends in the

industry, with modern equipment, always scaled to increase

production.





1.2 - BUSINESS GROUPS (A)

A - SUGAR COMPANY

Segment of Action: Agricultural , Industrial and Administrative

Properties: The plant, farms, vehicles, industrial and

administrative annex (buildings and equipment).

In a privileged area of mixed land plans, excellent rain and warm

climate, ideal for sugar cane growing is devoted primarily to

production of this raw material, manufacturing sugar VHP (Very High Polarizated - Crystal sugar) and refined grain (high purity),

Anhydrous Ethanol Fuel, Hydrated, Neutral, Bagasse, Syrups, Filter

Cake, Dry Yeast, Concentrated Vinasse and Molasses.

The refinery aims to continuously improve its production processes

and products through the aggregation of social and environmental

values, using the most modern practices of soil conservation and

modern equipment in all operations, both in safe and how much others, respecting the regains reserves and permanent

preservation areas, making their production processes economically

efficient, environmentally sound and socially just.





1.2 - BUSINESS GROUPS (B)

B - MERCANTIL FARMING LTD.

Segment of Action: Agricultural production of sugar cane,

mechanization, harvesting and transport.

Properties: This company is a shareholder of the plant and

Country has farms, workshops, heavy, medium and light tractors

and farm implements.

Continuous investments following the technological advances,

special care and equipment maintenance. Concern constantly

increasing production capacity, strict quality control of products

from entry of raw material to the control of the sucrose

content of sugar, until the final products ensuring the overall

quality of them.

All this creates wealth for the region and the country generates

approximately 1,000 direct jobs during the season benefiting some

8,000 people, the Refinery is the largest employment generation

and income in the region, boosting the economic growth of many

cities in region.





1.2 - BUSINESS GROUPS (C)

C - TRANSPORT COMPANY LTD.

Segment of Action: Transport of interest of both companies, especially the milling of sugar cane for the group.





HARVEST CANE

CRUSHED

(Tons)

SUGAR PRODUCED

(Bags 50 kilos)

PRODUCED ALCOHOL

(m3)

90/91 1,334,283 926,582 64,700

91/92 1,416,139 1,476,120 68,967

92/93 1,310,578 1,444,727 (1) 56,136

93/94 1,343,000 1,396,552 (2) 60,385

94/95 1,533,534 1,634,258 (3) 76,853

95/96 1,430,428 1,476,512 (4) 62,815

96/97 1,495,634 773,611 (5) 91,609

97/98 1,553,395 1,012,373 (6) 90,918

98/99 1,695,000 1,347,188 84,149

99/00 1,463,441 1,226,960 89,400

00/01 788,694 335,311 54,570

01/02 1,041,763 731,983 (7) 57,923

02/03 1,259,511 1,132,161 (8) 75,739

03/04 1,354,572 816,216 (9) 93,167

04/05 1,850,000 1,600,000 (10) 110,000

05/06 1,756,685 1,537,401 95,654

06/07 2,282,794 2,282,755 132,257

07/08 2,720,483 2,138,253 (11) 152,039

08/09 2,485,506 1,908,790 (12) 140,937

Note:

In the table above, there have been years in which exports

were made, as explained below quantities:

(1) 280 000 Bags 50 kilos sugar.

(2) 400,000 Bags 50 kilos sugar.



(5) 67,900 Bags 50 kilos sugar. (6) 237,060 Bags 50 kilos sugar.



(9) 88,400 Bags 50 kilos sugar. (10) 50,000 Bags 50 kilos sugar.


(12) 140,519 Bags 50 kilos sugar and 226,000 liters of

alcohol.

1.3 –DEVELOPMENTS OF SUGAR AND ALCOHOL





According to the data previously mentioned, it appears that the

plant, with rare exception of years, gradually increased its production, and this is linked to several factors, especially two:

1º - Logistics - The industrial park is located northwest of the State

of Sao Paulo. The geographical point of convergence of five major Brazilian states: Sao Paulo, Minas Gerais, Goias, Mato Grosso do Sul

and Parana. In the municipality crossed two major highways in the

state of Sao Paulo – highway the Rondon/SP-300 (doubled), which

connects São Paulo to Mato Grosso do Sul and highway Chateaubriand/SP-425 which starts in the state of Parana, replaced

by Sao Paulo and Minas Gerais, Goias and followed by finishing in the

Federal District (Brasilia).

The refinery is also served by the railroad that went out of Bauru, in the geographical center of the state of Sao Paulo, the country goes to

country Bolivia, passing through the inside of Sao Paulo and the

States of Mato Grosso do Sul and Mato Grosso, in addition to road

and rail , the margins of the Tietê Paraná, navigation which currently has about 1,100 km navigable by cutting part of the state of Sao

Paulo and with interface with the State of Mato Grosso and Paraná,

and also has an airport (1,300 meters) that allows the land of light

and medium aircraft.

This excellent logistics facilitates the flow of the plant, particularly in

regions of high demand of "neighboring" to these states. Other paved

roads facilitate the transport of cane to the refinery. Has an important inland waterway transport in trains of 4 or more

barges through the Tiete River that extends from the River Parana

Anhembi reaches about 150 km from state capital.

Remember that in the near future this as cheap transport will be accompanied by a projected railroad that will leave Anhembi and

reach the port of San Sebastian, opening a great opportunity for the

export of sugar and alcohol.

1.4 – Analysis and considerations “Logistics”





1.4 – Analysis and considerations “Logistics”

Main distances:

Highway Rondon (SP300) - 2 km

Highway Chateaubriant (SP425) - 5 km

Terminal railroad transportation - 10 km

Highway Trans-Brasiliana (BR153) - 40 km City Bauru (terminal distribution) - 154 km

City Paulínia (terminal distribution ) - 398 km

Port of Santos - 545 km

Port of Paranaguá - 721 km City Ribeirao Preto - 288 km (center of agri-business)

Transporter Waterways - Tiete River that extends from the River Parana Anhembi reaches about 150 km from state capital.





1.4 – Analysis and considerations “Geographic Location – Climate”

This region is recognized as the best to plant sugar cane, the reason of their land is very fertile, with warm days and great

rates of rain

These factors make the region richer for cane sugar in the

country.

The climate, according to the classification of Koeppen, is alternately dry and tropical humid, tropical where the masses work

for 50% of the year.

Temperatures year is 23 º C. The hot season occurs between

October and April and presents monthly average temperature of 25 ° C.

The month of temperatures February is high with 31 C and the

coldest is June with 14 º C.





1.5 – Strategy/Expansion/ MegaWatts/Co-Generation

The pipeline Brazil - Bolivia - Brazilian Petroleum Petrobras SA

(PBR), extending 3,150 km (Santa Cruz de la Sierra to Porto

Alegre), through 86 municipalities of Sao Paulo, a stretch of 528 km.

Among the three compressor stations of the state of SP, one is

Installed at the door of the refinery, due to its strategic location and

Other technical aspects.

Well as introducing natural gas as fuel industrial, commercial and

Residential area in the vast interior, the prospect of building power

Plants - Expansion / Co-generation – power projects





Strategic positioning

1.6 – Strategy/Transportation of fuel Ethanol

Brazil is the world's largest cane-based ethanol producer and one of

the lowest-cost producers.

Ethanol- Pipeline - Brazil, Logum is a joint venture that includes Brazilian state oil company Petrobras (PETR4.SA: Quote), sugar and ethanol giant Cosan

(CSAN3.SA: Quote), and logistics firm Odebrecht Transport Participators, among others.

The system is slated to reach a maximum capacity of 21 million cubic

meters per year.





1.7 – RURAL PROPERTIES AND LEASING OF LAND

AREAS WITH CANE SUGAR

AREAS WITH CANE SUGAR

In areas owned and leased (ha.) 4,778.710

In areas where suppliers (ha.) 25,862.600

Total of existing areas with sugarcane 30,641.310

Note - There is a large availability of areas for lease, the price from

12.5 to 15 tons / ha, depending on the distance to the plant, soil quality, slope, road quality, etc…

CURRENT CAPACITY OF THE AGRICULTURAL SECTOR

Cutting sugar cane ha/Day 120 * 1

Loading own t/day 14,000 *2

Cut with combine harvesters t/day 2,800

Transportation outsourced t/day 14,000

Planting - sugar cane Year ha/day 20

Planting - cane sugar and a half years ha/day 50

Cultivation ha/day 60 * 3

Note:

• *1 - The plant cut all the canes.

• *2 - The plant makes the loading of all rods.

• *3 - The plant grows only their own reeds.





1.7 – RURAL PROPERTIES AND LEASING OF LAND “continued”

RENTAL OF LAND

The leases can be hired on the eve of their crops through standard contract, with sufficient land and interested.

The rental price of land in the region is between 35 (thirty) and 50

(fifty) tones / alq, depending on the distance of the plant, the quality of land, slope, ease of access, etc..

The Mince RODS IN THE NEXT CROP 09/10

The plant has contracts with suppliers of reeds that added to the

total number of rods themselves 2,502,980.72 tones for the next

harvest.

However there are many loose rods (about 1,000,000 tons) without a contract but that may partly be purchased during the season, be

interested .

RAINFALL

The measurements performed show annual average of 1505.13 mm

for the last six years. For measurements in recent decades the

average is about 1,200 mm.





1.8 – INDUSTRY

INDUSTRY CAPACITY

Current milling capacity of cane (ton / day) 14,000

Capacity of sugar production (scs. / year) Equivalence in MT (metric ton / year)

2,500,000 125,500

Manufacturing capacity of alcohol Hydr. (m3/safra)

170,000

Tanks alcohol (m³) 25,000

Warehouses for sugar (tons) metric tons 27,000

INDUSTRIAL PRODUCTIVITY

02/03 03/04 05/06 06/0 07/08 08/09

Industrial

Sugar (kg/Tc) 131,39 128,37 121,53 132,49 118,87 125,60

Anhydrous alcohol (lts/Tc)

80,11 76,60 82,43 79,01 89,61 87,55

Hydrous alcohol (lts/Tc)

92,98 90,85 86,00 94,50 84,79 83,12

Agricultural (ton./ha) 70,35 79,35 58,21 68,81 74,96 89,98





1.9 – SUMMARY OF BUILDINGS AND COMPLEX

• The total area built for industry and services in the

industrial park is 33,079 m2 and houses and villages

housing is 13,817.900 m2.

• The types of buildings according to their construction

are just three:

Type A - Sheds structure (beams and columns) of concrete with corrugated asbestos cement

hut as the cane, the sheds at the pre-fermentation,

fermentation, the vats of small distillery, dosage.

Type B - Buildings of masonry, with concrete and

brace concrete asbestos cement roofs and

unfinished buildings of the mill, the manufacture

of sugar, the oldest distilleries, the workshops generally

Type C - Masonry Buildings with internal and external

finishing and roofs of asbestos cement or clay

tiles (ceramics) such as office buildings, the lobbies, the cafeteria, preparation of snacks

for rural people, the lecture hall for same, the

enclosures for ancillary services, of homes in

general, including the directors of the cooperative building of the former, chapel, etc..,,

The maintenance of buildings are normally held during the period

between harvest and, when necessary, at any time.





2.0 – INDUSTRIAL MACHINERY AND EQUIPMENT

• Grinding cane, reception with two scales, two probes TA-2,

laboratories, computerization, Hillo two elevators, two tables of cane, a set of knives graders, a set of knives cutters and a

hammer shredders, an electro-tab switch, a control panel, a

"tanden" Dedini of mills - with 5 suits, and the country's first 42

"x 78" and four 37 "x 78", all with "shuts Donelly," press rollers , composed and imbibition hydraulic pressure tanden this with all

the suits individually driven and able to grind 14,000 TCD.

• Treatment of stock - dosage, decanting, suffixation, heating and

filtration, consistent with the above grinding and production capacity of sugar and alcohol.

• Manufacture of sugar - evaporation, boiling, crystallization,

centrifugation, drying and bagging of sugar production capacity of 14,000 scs / day.

The storage of sugar contains 540,000 scs 50 pounds of product

in two deposits.

• Distillation of ethanol - fermentation, preparation of wort, its spin,

four distilling with nominal capacities of 40,000, 90,000, 120,000

liters of anhydrous alcohol and a nominal capacity of 150,000

liters of hydrous ethanol, a total nominal capacity of 400,000 ls / day The actual production capacity, as observed along the

seasons and 650,000 liters of hydrated ethanol / day which can

be augmented with some investment. The storage capacity of 25

million liters of alcohol in 5 (five) tanks alike.

• Steaming is ugly on 4 boilers with capacities but different enough

to grind the 14,000 TCD.

• Additional services - from electricity and water supply sufficient

for the productions listed.

VEHICLES, TRACTORS AND IMPLEMENTS

Vehicles, tractors and implements - are sufficient for the needs of

the Group, except for vehicles for the transport of cane during the

harvest, where there is complete outsourcing. Farm machinery are the Refinery of the caretaker of the cane.

sugar, alcohol mill and co-generation e

Documents

kilos sugar

developments of sugar

declaration sugar

sugar producedbags

sugar cane growing

milling of sugar cane

sugar companysegment

manufacturing sugar