1. Biofuels as a business Ministry of Development, Industry and Foreign Trade - Brazil

3. Sugarcane numbers – Brazil (2008)* GDP: US$ 28 bi  Larger than the GDP of 110 countries! Financial transactions: US$ 86 bi Tax’s collection: US$ 10 bi 1,28 mi of formal workers ~ 2,15% of brazilian jobs * Source: Markestrat – Mapeamento e Quantificação do Setor Sucroenergético em 2008

4. Protective equip. 53,80 Diesel e Lubrif. 1.054,01 Pesticides 768,44 Fertilizers 2.259,09 agricultural lime 50,56 Auto p./Maint. 2.851,19 Tractors 320,87 Harvesters 426,52 Implements 425,66 Trucks 331,36 Trailer 233,36 Resellers Cooperatives 477,54 pesticides Sugarcane Production Own: 6.387,91 Suppliers : 5.121,84 Protective equip. 38,96 Labor. products 15,46 Autom./Instrum. 269,76 Equipments 3.400,99 Electrical instal. 366,00 Building 594,75 Prod.Químicos 463,82 Assembly/Maint. 1.110,35 Chemicals 94,19 Sacks 45,42 Big bags 14,67 Ethanol 12.417,36 MILLS Total 22.639,17 Sugar 9.765,08 Bioelectricity 389,63 Carbon credit 3,48 Yeast e Additiv. 63,62 Bioplastic Beverage ind. and cosmetic Distributor 8.624,05 Wholesaler 743,89 Distributor Animal feed industry retail 3.259,26 Gas station 11.114,50 Food Ind. and Others Free Consumer Special Consumer END CONSUMER Agentes Facilitators (service providers) – 13.275,58 Before farms 9.252,42 On Farms 11.509,75 After Farms 52.795,27 Sugarcane Sector - Financial transactions - US$ 86 bi More than ¾ of financial transactions are after farms. Elaboration: Neves, Trombin, Consoli, 2009.

5. Sugarcane and ethanolExtraction and oil products Source: Moraes et. al. with data from RAIS (2007) e PNAD (2007) Employment - 2007

6. Source: Oliveira, data from PNAD. WORKERS REMUNERATION EVOLUTION Farm workers - salary who had the biggest increases (%) (1999 – 2007) Sugarcane Rice CassavaCornCoffeeSoy Comparing the value of production per acreage, the value of sugar cane is significantly higher than that of other crops such as soybeans and corn. Source: Impacto da Produção de Cana-de-Açúcar sobre as Condições Sociais das Regiões Canavieiras André Luis Squarize Chagas

7. Alphabetization index Source: A Sustainability Analysis of the Brazilian Bio-ethanol. Walter et al São Paulo – Comparison between municipalities with and without significant sugarcane activity Average: 90,6 Average: 88,6 Average: 0,532 Average: 0,516 Gini coefficient

8. Sugarcane productivity Ethanol productivity Note: 07/08e estimate Source: UNICA. Tonnes of sugarcane per hectare Kiloliters per hectare Average Productivity of Ethanol Production in Brazil Annual growth rate 2,7% Annual growth rate 1,6%

9. BEGINNING PROALCOHOL TODAY  CRUSHING CAPACITY (TCD) - 6X78” 5,50014,000  FERMENTATION TIME (H) 246 - 8  BEER ETHANOL CONTENT ( O GL) 6.5> 9.0  EXTRACTION YIELD (%SUGAR) - 6 MILL UNITS 9397  FERMENTATION YIELD (%) 8090  DISTILLATION YIELD (%) 9899.7  TOTAL YIELD (LITER HYDR. BIOETH./TON CANE) 6686  TOTAL STEAM CONSUMP. (KG STEAM/T CANE) 600380  STEAM CONSUMPTION - HYDR. (KG S/LITER) 3.42.0  STEAM CONSUMP. - ANHYDR. (KG S/LITER)  STEAM CONSUMP. - ANHYDR. (KG S/LITER) 4.52.7  BOILER – EFFICIENCY (% LHV) PRESSURE (BAR) / TEMPERATURE (ºC) PRESSURE (BAR) / TEMPERATURE (ºC) 6689 21 / 300120/ 540  SURPLUS BAGASSE (%) - BIOETHANOL MILL UP TO 8 UP TO 78  BIOMETHANE FROM STILLAGE (NM 3 /LITER BIOETH.) -0.1  STILLAGE PRODUCTION (L STILLAGE/L BIOET) 130.8 RESULTS OF INDUSTRIAL TECHNOLOGICAL EVOLUTION IN THE SUGAR & BIOETHANOL SECTOR – 2007 TECHNOLOGICAL EVOLUTION OF SUGARCANE INDUSTRY 320 1,6 2,0 15.000 2009 98 92 87 Source: Denini

10. Innovations as a result of biofuel investment Flex-fuel cars Ethanol mills Ethanol-powered plane Flex thermoelectric plant Sugarcane planter Bioeletricity Seedling production Sugarcane harvesterSteam turbines

11. 1979 to 1989: bus and truck with the ethanol engine in Brazil The Brazilian experience Nowadays: testing of new engines

12. Benefits of cogeneration and distributed generation of eletricity  Experience and know how  Units are self-sufficient in energy  Reduced construction period  Construction in 24-30 months  Renewable and clean energy  Low environmental impact  Provide carbon credits  Synergy with hydro production pattern  Bioelectricity is produced during the dry season  Smaller projects and broader range of investors  Eliminate risks of delay and construction problems  Strengthen the national equipment industry and create jobs  Location close to main load centers Sources: PSR, Cogen and UNICA Bioeletricity Bagas s sugar cane suga r ethanol

13. Genetic improvement of sugarcane. Each year, close to six new varieties are released to the market and the total number of varieties is currently close to 500. Best techniques for seedling production of sugarcane

14. Source: Unica

15. Green Polyethylene Cycle From cradle to cradle Ethylene CH2=CH2 Through the dehydration, the ethanol is transformed in ethylene Ethanol CH3-CH2OH At the distillery, the sugar juice is fermented and distillated to produce ethanol Sugarcane The sugarcane crop metabolizes the CO 2 to produce sucrose (85 t/ha; 14% sugars + 28% biomass) Carbon capture The green polyethylene is transformed in final products in the same unities already existents Green PE [CH2=CH2] The ethylene is polymerized in polyethylene production unities (3 t PE/ha) The green polyethylene is 100% recyclable (Mechanical / Incineration) Very Favorable Ecoprofile Recycling Captures and Fixes 2,5 t CO 2 /t PE Source: Brasken

16. Source: Unica

18. Brazilian Expertise Mills Projects, design, production, sales, installation and maintenance. Turn-key mills and all machinery and equipments to biofuels production. Research, development, technology innovation and totally services for biofuels. Agriculture technology generation to production materials for renewable fuels. Technologies for ethanol and biodiesel production. Cogeneration Energy

19. Products, Services and Brazilian Technology Available Ethanol production in the world with Brazilian technology New projects of distilleries anywhere in the world Economical feasibility studies and analysis of area/soils and weather feasibility Supply of sprouts and productive & resitant genetic diversity Technology for plague control and combat

20. Products, Services and Brazilian Technology Available Machinery and Equipment for cutting, loading and transportation “ Turn-Key” Plants Sugar & Ethanol Plants Ethanol Distilleries Energy co-generation using bagass Biodiesel Plants Consulting and follow-up of all process of the productive chain Professional Qualification

22. Environmental profits Carbon sequestration Lower level of emission in the consumption Global warming Political aspects Democracy Energy security Social aspects Jobs creation Income deconcetration Economic aspects New component of demand Impact in the trade balance Monetization of least developed countries Renewability Short cycle of production Man-controlled process Why Biofuels?