Ministério de Minas e Energia G-15 TRAINING WORKSHOP: BEST PRACTICES ON RENEWABLE ENERGIES...
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Transcript of Ministério de Minas e Energia G-15 TRAINING WORKSHOP: BEST PRACTICES ON RENEWABLE ENERGIES...
Ministério de Minas e Energia
G-15 TRAINING WORKSHOP: BEST PRACTICES ON RENEWABLE ENERGIES
BRAZILIAN EXPERIENCE ON BIOFUELS
Marlon Arraes JardimGeneral Coordinator - Renewable Fuels Department
Dakar, November 5th, 2012
Ministério de Minas e Energia
Brazilian Energy Mix – 2010/2020 (%)
Ministério de Minas e Energia
Brazilian Energy Mix Evolution
Renewable Energy (2010): 45.5%14.0% Hydro17.8% Sugarcane Products 9.7% Firewood and Charcoal 4.0% Others
Ministério de Minas e Energia
Brazilian Electricity Supply by Source
Ministério de Minas e Energia
Fuel Mix - 2011 and Recent Evolution
Source: MME (2012)
Highlights:
1. Biodiesel growth;
2. Ethanol shortening.
Ministério de Minas e Energia
Let’s Take a Look in History…
10
2
3
4
5 6
T0 = First Oil ShockT1 = Proalcool is launchedT2 = Second Oil Shock; E100 begins in Brazil T3 = Ethanol CrisisT4 = End of Ethanol SubsidiesT5 = Government begins to study biodiesel policiesT6 = Biodiesel Program is launched
Ministério de Minas e Energia
The Deregulation of Fuel Market and the Ethanol Fuel
1993
1995
1999Liberalization of Hydrated Alcohol prices at the producer with the subsidy reduction (Feb/99)End of subsidies for Hydrated Alcohol (Nov/99)
Constitutional Amendment Nº 09: petroleum monopoly made flexible (Nov/05)
2002 Complete Liberalization of Fuel Prices (Jan/02)
Free prices in the whole chain of production and commercialization
Mandatory blending of ethanol and gasoline introduced by Law
1975 National Alcohol Program (Proalcool) goals:1. To introduce in the market the mixture gasoline-ethanol2. To stimulate the development of pure ethanol motors
Two types of ethanol used, produced and tested in Brazil:
anhydrous
hydrated
Mixed with pure gasoline (20 to 25%)
Directly used in Otto-cycle motors (100%)
1979
Ministério de Minas e Energia
97.5%
3.1%Fósseis
Biocombustíveis
77%
23%
Fósseis
Biocombustíveis
... Brazil
World
2011 Data (Source: BP / MME)Middle and Light Destilates: Diesel, Gasoline e Jet Kerosene
0,11 x 1012 liters/year
3,5 x 1012 liters/year
79 x 109 liters/year
24 x 109 liters/year
Biofuels x Fossil Fuels
Fossil Fuels
Biofuels
Fossil Fuels
Biofuels
Ministério de Minas e Energia
Brazil: 2011 Data (Source: MME)Other Countries: 2010 Data (Source: multiple)Obs: Size of the country is total energy demand
Share of Renewables in Different Countries% Renewables
Ministério de Minas e Energia
Retailers
Gas Stations (37.243)
TRR (471)
Airports and Aviation Gas Stations (90)
Lubricant distributers
Retailers of LPG (31.800)Source: MME–ANP–MAPA June/2012
Diesel
Biodiesel
Gasoline C
Ethanol
Querosene
QAV
Oil Fuels.
Lubricants
LPG
Solvents
Asphalt
Final
Consumers
Freight and Passengers Transport
Companies
Aviation Companies
Industries
General Consumers
Petrochemicals(4)
Ethanol Producers (427)
Refineries (13)
Importers (216)
Biodiesel Producers (64)
E&P
Distribution (207)
Agriculture Producers
Distribution Bases (570)
Market Players
Ministério de Minas e Energia
Observation:GASOLINE “A” = Pure Gasoline, without ethanol, not commercialized to final consumerGASOLINE “C” = With ethanol, commercialized in the whole country.
GASOLINE “C” (GAS “A” + Anhydrous)
GAS STATION
GASOLINE “A” (*)
RETAILER
OIL REFINERY
ANHYDROUS ETHANOL
SUGAR MILL
Mixture
Consumer
GASOLINE “C” (GAS “A” + Anhydrous)
GASOLINE “A”: TAXATION
CIDE -
PIS & COFINS
R$ 0,26/ liter.
IVA 25% a 31%
Anhydrous Taxation
CIDE --
PIS & COFINS
R$ 8,57 + R$ 12,86
IVA Differed to GAS “A”
No TaxationHere
Commercialization of Ethanol for Blending
Anhydrous Taxation
CIDE --
PIS & COFINS R$ 39,43 + R$ 59,14
IVA Differed to GASOLINE
“A”
Ministério de Minas e Energia
Government and Private Associations
Ethanol Governance includes:
CNPE (Energy Policy National Council) CIMA (Interministerial Council):
1. Ministry of Agriculture, Livestock and Food Supply;
2. Ministry of Mines and Energy
3. Ministry of Finance
4. Ministry of Development, Industry and Foreign Trade. Staff Office of the Presidency and the MFA (Ministry of Foreign Affairs) ANP (Regulatory Agency for Oil, Natural Gas and Biofuels) National Sucroenergetic Forum (Association of Producers) UNICA (Center-South region Association of Producers) Agriculture Sector Chamber SINDICOM (Union of Distributors and Fuel Retailers) BNDES (National Development Bank)
Biodiesel Governance also includes: Staff Office of the Presidency - CEIB (Interministerial Council) Ministry of Mines and Energy – Grupo Gestor (Program Manager) Brazilian Biodiesel Union (UBRABIO), Brazilian Association of Vegetable Oil Industries
(ABIOVE) and Brazilian Biodiesel Producers Association (APROBIO)
Ministério de Minas e Energia
The General Policies for Biofuels
The law of Brazilian energy policy includes as one of the objectives: to increase the share of biofuels in the national energy mix. The main general instruments include:
Mandatory mix: ethanol (E18-25) and biodiesel (B5). Tax differentiation regime in federal level. Line of credit for ethanol strategic buffer stocks (conceived to improve
off-season supply conditions). Public auctions for biodiesel market supply. Research funding (CT-Petro, created in 1999 and CT-Energ, created in
2000). Agro-ecological zoning that orients and guarantees that raw-material
production will take place only in suitable areas. The Brazilian government managed to conclude the sugarcane (2009) and palm oil (2010).
Ministério de Minas e Energia
Recent Modifications on Biofuels Regulation
Biofuels are now treated as fuels and not only as an agriculture product inserted in the Brazilian energy mix. This understanding is boosted by the growing ethanol utilization of ethanol and biodiesel, both in Brazil and abroad, that demonstrates the extraordinary role and potential of biofuels.
Biofuels have an uniform treatment regarding their role in National Energy Policy. That includes both ethanol and biodiesel, as well as any other new biofuel that eventually will be produced in commercial scale in the future.
The National Energy Policy Council (CNPE) has, from now on, authority to establish the directions for biofuels imports and exports in the same way that it already has for all oil derivatives such as gasoline, diesel and jet fuel.
Ministério de Minas e Energia
Ethanol Savings and Benefits for Brazil
1.5 billion barrels of oil displaced
Ministério de Minas e Energia
+53% [Jan-Jun(12)]/[Jan-Jun(06)]
(E25)
(E100)
Light-Vehicles Fuel Demand in Brazil: Trendsmillion m³ (Gasoline Equivalent)
Ministério de Minas e Energia
Why Ethanol Decreased Its Share in 2011?
Conjunction of different but interconnected factors:
1. International financial crisis in 2008;
2. Climate event (excess of rainfalls) in 2009/2010 season;
3. Climate event (lack of rainfalls) in 2010/2011 season;
4. Higher sugar prices, since 2009;
5. Fuel demand (internal market) skyrocketed!
Why Biodiesel Increased Its Share in 2011?
Main factors:
1. Mandatory mixture was raised from B3 (1st half 2009) and B4 (2nd
half of 2009) to B5 (since Jan/2010);
2. Brazilian economy growth.
Ministério de Minas e Energia
What the Government is Doing for Ethanol? Highlights:
1. Finishing the necessary regulatory instruments by ANP after the recent Biofuels’ Law (Law 12.490/2011) approved;
2. Public policy design is being conducted by Government officials considering next ten years scenarios for ethanol demand;
3. Incentives package for production expansion investments;
4. The strengthening of future market contracts as a tool for ethanol commercialization;
5. Permanent dialogue with the private sector representatives of the whole chain of production and commercialization.
Ministério de Minas e Energia
mill
ion
m³
Ethanol for Internal Fuel Market
PDE 2021 is under public consultancyuntil Oct. 31st Contribution must be sent to [email protected]
Ethanol: What the Government plan is showing?
Source: PDE 2021 (Public Consultancy Version)
1. Internal Market will remain as main driver (flex-fuel car sales)
2. Neverending quest between sugar prices and ethanol prices
3. Not to mention the new products from sugarcane...
Ministério de Minas e Energia
Biodiesel Main Policies Mandatory mix (5%)
Social Fuel Certificate (SFC) Granted to biodiesel producer who stimulates feedstock supply
from household agriculture SFC ensures preferential biodiesel market access Lower taxation
Public Auctions promoted by ANP Trade rule between biodiesel producers (suppliers) and diesel
producers (buyers)
Ministério de Minas e Energia Social Fuel Certificate
1. Minimum feedstock's purchase from household agriculture • 15% at Mid West or North• 30% at Southeast or Northeast• 35% at South (40% from 2013/14 season on)
2. Diversifying, regionalization and cooperatives The multipliers concept:
• 2x for non-soya oilseeds• 2x for Northeast and Semiarid• 1.2x for Household Cooperatives• Cumulative Situations -> (2 x 2 x 1.2 = 4.8)
Ministério de Minas e Energia
Biodiesel Production in Brazil
Key to Symbols:WITH SFC* WITHOUT SFC*1,000 m³/Year 1,000 m³/Year
(*) Social Fuel Certificate
2005 2006 2007 2008 2009 2010 20110
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
736 69,002 404,329
1,167,128
1,608,448
2,386,399 2,672,760
Biodiesel Production
Th
ou
san
ds
of
m³
Source: ANPElaboration: MME
Ministério de Minas e Energia
BiodieselFa
mili
es
US$ / Family per Year
Total Biodiesel Production Total Income
of the Families due to Biodiesel
Higher levels of income since the mandate period
confirms the policy
Source: MDA, MME (2011)
m³
Ministério de Minas e Energia
Biodiesel: Positive Impacts Already obtained with B5… Brazil is one of the top3 world biodiesel consumers (USA and
Germany) GDP: US$ 3,6 billions/year Investments: US$ 2 billion on biodiesel plants (B5) International trade: US$ 6.5 billion savings of diesel imports Employment: 86 thousand new jobs Household agriculture: 104,000 small farm’s units Estimated environmental and health benefits:
- 57% CO2 emissions- 13,000 hospitals’ admissions- 1,800 deaths due to emissions
Ministério de Minas e Energia
Land Use in Brazil *Total Area Native Vegetation Arable Land
Available
Pasture
AgricultureSugarcane
Others 15 2%
* 2009 Data
Source: ICONE, ESALQ and IBGE. Elaboration: COSAN and UNICA
Ministério de Minas e Energia
Sugarcane Expansion withAgroecological Requirements
Agrozoning for Soy, Sunflower, Castor,Palm, Cotton Seed etc.
Maximum allowed: 65 million haor 7,5% (green areas)
Agricultural zoning as a guarantee for public and private investments and a recommendation of suitable areas for harvest
North RegionFocus = arc of deforestation
Northeast RegionFocus = coast areas
Ministério de Minas e Energia
New Uses in Other Sectors (P&D)
The BNDES launched PAISS (Joint Programme of Technological and Innovation Support for Sugarcane Sector), were selected from 25 companies that submitted 35 business plans, which will generate investments of about R$ 3 billion. The PAISS fosters research and development of cellulosic ethanol. If made
viable economically, the cellulosic ethanol could increase the productivity of the sector in more than 40%.
Among the entities who study the processes of production of ethanol from lignocellulose in Brazil, stand out:
CENPES-Petrobras CTBE;
Centro de Tecnologia Canavieira – CTC Dow & DSM
Embrapa Agroenergia ETH Bioenergy
Dedini S/A Indústrias de Base Graal Bio
Amyris LS9
Ministério de Minas e Energia
Bioenergy International Cooperation
* Includes MoUs, partnerships and other agreements signed directly by any Federal Government Department or Agency or Public Enterprise. It was considered bilateral agreements, cooperation in third countries and agreements signed with economic or regional blocks.
Map of International Agreements on Bioenergy sign by Brazilian Representatives
77 countriesNearly 1/3 of the whole nations
Ministério de Minas e Energia
Renewable energy source
Energy security
Better CO2 and pollutants emissions
Income improvement at rural areas
Bioenergy industry helps to deconcentrate energy markets
It is much lower capital intensive than oil industry
Bioenergy can be produced in a sustainable way worldwide while oil is concentrated in a few countries (many of them with political instability)
Some Bioenergy Externalities…
Ministério de Minas e Energia
Maintain the best environment for investments with a clear regulatory framework
Articulate the different interests involved
Assure the proper incentives to best practices
Pursue the most sustainable path to expand the industry and promote development
Give ways to assure and respect contracts
Induce and facilitate the international trade
Correct market distortions that might lead in long term to imbalances in economic activity
The Government Role (as we see)