Foundation for Agricultural Innovation (FIA)

MINISTRY OF AGRICULTURE

Fernando Bas M.Executive Director

Promoting the Use of Bioenergy in the agricultural

and forestry sector

FIA is an Agency of the Ministry of Agriculture whose goal is: To promote and encourage innovation in the agri-food and forestry sectors, by strengthening their capabilities and entrepreneurship, to enhance sustainable development and competitiveness of Chile.

Foresee topics of upcoming importance and guide innovation

Support producers, companies, and R & D centers in the implementation of innovation

Create learning instances, and provide tools and motivation for innovation

Propagate innovation strategies and practical applications that increase competitiveness

FIASeizes, Sows,

Grows, and Disseminates Innovation for

the Competitiveness

of Chile

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Areas of Innovation Initiatives

Reduces the risk of innovating in strategic areas: supports producers, companies, and R & D centres, in developing prototypes and new inputs that can be replicated by others

FIA Instruments to promote Innovation

Innovation Projects

Innovation Roundtrips

Innovation Consulting

National Innovation Programs

New instruments to co-finance Non-Conventional Renewable Energy (NCRE)

projects in the agri-forestry sector

(Spanish: ERNC, Energias Renovables No Convencionales)

Objectives

• Increase the competitiveness of the agro-forestry sector through reductions in energy costs

• Promote and propagate the adoption Non-Conventional Renewable Energy technologies in agriculture production processes

Time, Generated Value

Adaptation of New Technologies

2 years

Curve of Technology Adoption vs. Time

Early Adopters

Copy

Adaptation

Improvement

Invention

No Innovation

Major Innovation

Adaptation: Modify or adjust an existing product, process, service , or management strategy to local conditions, in order to obtain an expected outcome

Degrees of Innovation in FIA

If profitable: Why these technologies have not been adopted already?

• Large fear of risk present in small and micro producers (99,5 % of agriculture producers)*

• Relatively high initial investment and long-term return on investment

• Misinformation, or no information, regarding the implementation and operation of new technologies

• Producers’ wary way of thinking: seeing is believing

*Agriculture Census, 2007

Positive external outcomes:

• Source of reliable self-supply for the long term, what contributes to diversification and reduces vulnerability and reliance on foreign supply sources

• Stable, independent production costs independent of oil costs

• Reduced environmental impact (local and global) than traditional projects. Better acceptance in the community and in the society at large

• Contribute to sustainable development of geographically isolated areas

TYPES OF TECHNOLOGIES

• BIOGAS

• SOLAR PANNELS

• EOLIC

• BIOMASS

Characteristics of the Instrument

• Maximum amount of subsidy: M $100 (US$ 200.000)

• Beneficiaries and percentage of contribution:

Applicant’s annual sales (in UF)* Maximum of FIA co-financing of

the total cost proposed

Above 100.000 UF 20%

Between 25.001 and 100.000 UF 40%

Up to 25.000 UF 65%

1 UF approx. US$ 50

Characteristics of the Instrument

• Evaluation criteria:

Criteria Relative weight

Innovative merit 10%

Economic investment of executor 20%

Cost efficiency 25%

Economic evaluation of the project 20%

Technical quality of the project proposal 25%

Funds

Review of applications

Submission of applications

Min. Agric. REGIONS

FIA

FIA - CER

FIA Allocation of funds

EXECUTION THROUGH FIA

Demonstrations of Prototype Biogas Plants for Small and Medium-sized Agriculture Producers

feed

fertilizer

manure

waste

tank

Biogas Projects

Traditional use of manure as fertilizer

in agricultural systems

feed

fertilizer

manure

energy

light

heat anaerobic

digestor

Biogas Projects

General Objective

The objective of this project is to bring about the construction and start-up of 6 prototype plants that demonstrate the utilization of organic agriculture waste, and allow for the replacement of fossil fuels, considering:

- Self management- Eco-friendly- Sustainable- Profitable- Model for demonstrations

Technical Objetives

• For the anaerobic digestion process to be efficient, the biodigestors must run at a constant temperature of 35 ° C

The system uses on average 50% of the produced biogas to maintain temperature (self-consumption)

• The biodigestor, in order to maintain a constant inside temperature must furnished with a good agitation system

The agitation is obtained by a recirculation system powered by an electric pump

Prototypebiogás

bomba de alimentación y recirculación

calefónbomba de

recirculación

Prototype

Reactor bin

40 m3

Solar heating panels

Retrofeedtank

Heater powered by

biogas

Collective Prototype

Collective Prototype

Reactor bins

40 m3

Solar heating panels

Retrofeedtank

Heater powered by

biogas

Propane Substitutionkg propane equivalent 3.380$/kg propane 429Propane market cost (kg) 967

Project: Individual Biogas Plant

Annual Costs CL $Investment (depr. 10 years) -1.500.000 (Investment 15 millions)Labor -600.000 (2 hours/day)Subtotal -2.100.000Fertilizer savings +650.000 (4 kg N/m3 -price urea)TOTAL -1.450.000

Expected Outcome

• Reduction in Energy costs

• Production of biofertilizers

• Reduction in manure odors and pathogens

• Replacement of fossil fuels => greater environmental sustainability

• Prototype replication

• Increased competitiveness

Gracias!