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ETHANOL ETHANOL Alexandre Betinardi Strapasson Director of the Department of Sugar Cane and Agroenergy Ministry of Agriculture, Livestock and Food Supply.

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Presentation on theme: "ETHANOL ETHANOL Alexandre Betinardi Strapasson Director of the Department of Sugar Cane and Agroenergy Ministry of Agriculture, Livestock and Food Supply."— Presentation transcript:

1 ETHANOL ETHANOL Alexandre Betinardi Strapasson Director of the Department of Sugar Cane and Agroenergy Ministry of Agriculture, Livestock and Food Supply

2 VISÕES SOBRE COMBUSTÍVEIS VEICULARES - World preponderance of Otto and Diesel cycles engines, developed for liquid fuels - The fleet renewal is a gradual process and not immediate - New technologies such as hybrid vehicles and electric engines constitute a promise for the future, but their costs are still elevated in the short term. - Large scale hydrogen or electricity use as vehicle fuels will still take time and requires an energy source for its production, not always renewable. - Fuel production by the thermochemical process from biomass, hydrocellulosic hydrolysis and diesel from sugarcane may become competitive in the future. - Birth of a new agricultural and energy paradigm: Agroenergy FORECASTS ON VEHICLES FUELS

3 POTENTIAL FOR BIOMASS PRODUCTION 30 O O 0 O O O 0 O

4 ETHANOL 1532: Martim Afonso de Sousa introduces sugar cane in Brazil 1925: First ethanol powered vehicle tested in Brazil 1979: First commercial ethanol moved vehicle in Brazil 2003: Flex fuel motors are launched launched

5 MAKING A NEW MARKET FOR SUGAR CANE BLENDING ETHANOL TO GASOLINE: Current mix in Brazil (B25): 25% ethanol + 75% gasoline. USING FLEX FUEL CARS Flex-Fuel Engine allows the use of ethanol or gasoline in any concentration of these fuels. - Current manufacturers: VW,GM, Ford, Fiat, Renault, Peugeot, Citroen, Honda and Toyota. -Current fleet: 5.6 million vehicles. The consumption of ethanol is already higher than gasoline in Brazil.

6 SUGAR AND ETHANOL FORECASTS IN BRAZIL CROP SEASON: April 2008 to March 2009 SUGAR AND ETHANOL FORECASTS IN BRAZIL CROP SEASON: April 2008 to March 2009 Sugar cane production for sugar and ethanol: Min million tonnes (11.3%). Max million tonnes (15.6%). Sugar cane destination: 42.8% for sugar. 57.2% for ethanol. Sugar production: Min million tonnes (+8.3%). Max million tonnes (+12.4%). Ethanol production: Min billion liters (+15%). Max billion liters (+19.5%). Source: MAPA/CONAB – May 2008

7 MAIN REASONS RELATED TO THE RECENT GLOBAL INCREASES IN FOOD PRICES: - Increase in the global demand for food, mainly because of the increase in the per capita income and the rural exodus in some developing countries -Record oil prices -US Dollar devaluation -Increase in prices of fertilizers -Migration of investments to the agricultural commodities market -Constraints in distribution logistics and food exporting barriers in some countries -Weather problems, probably aggravated by global warming BIOFUELS AND FOOD PRODUCTION

8 OTHER ASPECTS: -There is no relation between ethanol production in Brazil and the international increase in food prices -Ethanol form corn in the US might have caused a limited impact in some products -High prices of food incentive the food production because of better income for the farmers CHALLENGES TO INCREASE THE GLOBAL SUPPLY OF FOOD: -Reduce urgently both agricultural subsidies and trade barriers for the food products (Doha Round), the main causes of agricultural harm in developing countries. -Give incentives to technology transfer and better agricultural practices to developing countries, supported by international agencies, organizations and banks. -Implementation of the Agenda of the United Nations Framework Convention on Climate Change (UNFCCC) and its Kyoto Protocol BIOFUELS AND FOOD PRODUCTION

9 Source: Conab / MAPA - * Estimates (May, 2008) GRAINS: Cotton, peanuts, rice, oat, barley, beans, sunflower, castor beans, corn, soybean and sorghum. EVOLUTION OF GRAIN PRODUCTION IN BRAZIL Planted Area (million tons per ha) + 24% = 1,3% per year Production (million tons) + 145,5% = 8,5% per year Productivity: + 98% = 5,4% per year

10 POTENTIAL AREAS FOR SUGAR CANE EXPANSION

11 Plant in construction or in project Current plant AMAZON PANTANAL Sugar Cane Fields WHERE DOES BRAZIL PRODUCE SUGAR CANE?

12 Source: EMBRAPA / MAPA Sugar Cane Agroecological Zoning Project underdevelopment by the Brazilian Government that will be published in July It will permit the establishment of more effective public policies in order to assure sugar cane sustainability in a long term scenario. Main considered maps in the zoning: soil, climate, topography, land use and preserved areas.

13 THANK YOU! OBRIGADO! Alexandre Betinardi Strapasson Telephone: Fax:


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