1. tel: +52 777 362 38 11 ext 7032, difusion@iie.org.mx, www.iie.-org.mx. BIODIESEL INITIATIVE AT MEXICO’S ELECTRICAL RESEARCH INSTITUTE Jorge M. Huacuz Non-Conventional Energy Unit IIE

2. tel: +52 777 362 38 11 ext 7032, difusion@iie.org.mx, www.iie.-org.mx. Mexico in the World Context

3. tel: +52 777 362 38 11 ext 7032, difusion@iie.org.mx, www.iie.-org.mx. USA Briefing on Mexico Central America Gulf of Mexico Pacific Ocean Total land area: ~2 M km2 Population: 103 M (<20% rural) Official language: Spanish Main energy source: oil (~90%)

4. tel: +52 777 362 38 11 ext 7032, difusion@iie.org.mx, www.iie.-org.mx. Energy in Rural Mexico Large population dispersion Subsistence farming among peasants Low energy use in agriculture (3% of total national)  Diesel fuel: 68.8  Electricity: 24.7  LP Gas: 6.5 High firewood consumption in domestic sector  Firewood: 68.80%  Gasoline: 10.43  LP Gas: 9.98  Diesel fuel: 6.33  Electricity: 2.53  Kerosene: 1.58 Rampant deforestation

5. tel: +52 777 362 38 11 ext 7032, difusion@iie.org.mx, www.iie.-org.mx. IIE’s Biodiesel Initiative Objectives To promote energy security of rural Mexico by means of the local production of accessible and affordable fuels, while at the same time opening new business opportunities for Mexican farmers, fostering a cleaner environment and promoting sustainable development.

6. tel: +52 777 362 38 11 ext 7032, difusion@iie.org.mx, www.iie.-org.mx. Rationale for IIE’s Biodiesel Initiative Increasing availability of fuels in rural areas Extending service hours of diesel-powered rural electrification mini-grids Opening new business opportunities for peasants Protecting the environment Reclaiming degraded land Shifting energy subsidies Facilitating local processing of agricultural products

7. tel: +52 777 362 38 11 ext 7032, difusion@iie.org.mx, www.iie.-org.mx. Feedstock Options Jatropha Curcas Palm Oil

8. tel: +52 777 362 38 11 ext 7032, difusion@iie.org.mx, www.iie.-org.mx. Oil Palm Distribution in Mexico Current Status: Commercially harvested Over 3,000 Ha in production Over 10,000 Tons of oil per year Basically small rural producers Volatile current oil market

9. tel: +52 777 362 38 11 ext 7032, difusion@iie.org.mx, www.iie.-org.mx. J. Curcas Distribution in Mexico Source: Jorge Martínez, CEPROBI-IPN Current Status: Not commercially produced Grows wild in several regions Non-toxic variety used for medical purposes/cattle feed

10. tel: +52 777 362 38 11 ext 7032, difusion@iie.org.mx, www.iie.-org.mx. J. Curcas World Distribution Centro de Origen Toxic J. Curcas Source: Jorge Martínez, CEPROBI-IPN

11. tel: +52 777 362 38 11 ext 7032, difusion@iie.org.mx, www.iie.-org.mx. Target Biodiesel Markets Current: Local rural applications (mini-grids, tractors, trucks, water pumps, cooking, space heating) Metropolitan Mexico city transport system Future: Intercity bus lines Export to Europe/US Hybrid diesel cars

12. tel: +52 777 362 38 11 ext 7032, difusion@iie.org.mx, www.iie.-org.mx. Prospects for biodiesel: Introduced to lower transit emissions (mainly Sulfur and CO2) System coverage to be expanded (currently 100 units) Heavy diesel fuel consumer (4,600 Tons/year) Already blending-in imported biodiesel in small quantities 50% of current palm oil production enough to cover 100% of Metrobus fuel needs Biodiesel nearly competitive with petrodiesel The Metrobus System

13. tel: +52 777 362 38 11 ext 7032, difusion@iie.org.mx, www.iie.-org.mx. The Jatropha Route Daily Metrobus requirements: 14,000 lts. Required cultivated land area: 100 Ha Projected levelized production costs: 49 US¢/lt Competitive with petrodiesel Uncertainties in harvesting costs Uncertainties in processing O&M costs By-products and environmental benefits can increase competitiveness

14. tel: +52 777 362 38 11 ext 7032, difusion@iie.org.mx, www.iie.-org.mx. Seeds Oil extraction Raw oil Refining and chemical treatment Raw glycerol Refining Pure glycerol Chemical industry Biodiesel Motor fuel Residue cake Cattle feed, fertilizer Fuente: http://usuarios.lycos.es/biodieseltr/hobbies4.htmlhttp://usuarios.lycos.es/biodieseltr/hobbies4.html By-products from J Curcas

15. tel: +52 777 362 38 11 ext 7032, difusion@iie.org.mx, www.iie.-org.mx. Current Cost Trends Cited in: BIOFUELS FOR TRANSPORTATION. World Watch Institute, GTZ, BMELV, 2006. Our study

16. tel: +52 777 362 38 11 ext 7032, difusion@iie.org.mx, www.iie.-org.mx. Future Cost Trends Our target Cited in: BIOFUELS FOR TRANSPORTATION. World Watch Institute, GTZ, BMELV, 2006.

17. tel: +52 777 362 38 11 ext 7032, difusion@iie.org.mx, www.iie.-org.mx. Where the Initiative Stands Status: launched Stakeholders:  Electrical Research Institute (IIE)  Agriculture research unit (CEPROBI-IPN)  Oil palm producers  Farmers for Jatropha production  Potential investors Technology market under assessment Pilot Jatropha plantation at planning stage Business plan under development

18. tel: +52 777 362 38 11 ext 7032, difusion@iie.org.mx, www.iie.-org.mx. CEPROBI-IPN Experimental Plantation March 2005September 2005

19. tel: +52 777 362 38 11 ext 7032, difusion@iie.org.mx, www.iie.-org.mx. Electrical Research Institute Thank you.....