OVERVIEW OF BRAZIL BIOFUEL BUSINESS

Transcription

1 OVERVIEW OF BRAZIL BIOFUEL BUSINESS Tsukuba, October 29, 2009 IEA Bioenergy Kuniyuki Terabe Petrobras General Manager

2 OVERVIEW OF BRAZIL BIOFUEL BUSINESS AGENDA > BIOFUEL IN BRAZIL > FORECAST OF BIO FUEL > INVESTMENT OF PETROBRAS IN BIOFUELS > COOPERATION WITH ASIAN COUNTRIES > FINAL COMMENTS

3 OVERVIEW OF BRAZIL BIOFUEL BUSINESS BIOFUEL IN BRAZIL

4 Brazil natural resources and excellent climate Cancer Tropic Equator Line Capricorn Tropic Abundant Natural resources as iron core, bauxite, copper and others, Adequate climate, large available land, abundant rain, tropical temperature

5 Bio fuel overview in Brazil Biodiesel Production ,2 billions liters billions liters Ethanol Production ,0 billions liters ,0 billions liters Sugarcane Plantation area 7.5 millions ha Biodiesel Program - 4% from Jul/2009 and 5% from 2013, mandatory - 50 biodiesel plants - Ethanol Program - 30 years producing and using Ethanol Plant Source: Ministry of Energy- Ministry of Agriculture,Livestock and Food Supply

6 Production of ethanol NORTH- NORTHEAST Total mills 79 Sugar mills 8 Ethanol mills 19 Ethanol and Sugar 52 SOUTH CENTER Total mills 288 Sugar mills 8 Ethanol mills 59 Ethanol and Suga r 221 Fontes: Ministry of Energy- Ministry of Agriculture,Livestock and Food Supply

7 Comparison of feedstock to produce Ethanol ,30 Energy Energy efficiency index 4 2 1,90 1,55 1,20 0 Cana-de-açúcar* Beterraba Milho Trigo Sugar Cane Beet Corn Wheat 8,000 7,000 Produtivity liters / ha Production cost US$/ m , , , , ,000 Sugar Cane Brazil Beet EU Sugar Cane India Corn USA Cassava Tailand Wheat EU 0 Brasil Brazil Tailândia Thailand Austrália Australia EUA USA China Europa Europe Source: International Energy Agency. Source: FO Litch.

8 Importance of ethanol use 10 6 BOE FUEL DEMAND FOR LIGHT VEHICLES IN BRAZIL TOTAL DEMAND FOR LIGHT VEHICLES GASOLINE PRODUCTION GASOLINE CONSUMPTION Total economy of 1.25 billion boe or 22 months of the present Brazilian petroleum production of 2,2 millions barrel per day DURING THIS PERIOD, THE USE OF FUEL ETHANOL IN BRAZIL HAS PREVENTED THE EMISSON OF 1,20 BILLION TONS OF CO YEAR Source: Ministry of Mines and Energy - Brazilian Energy Balance 2008

9 % 80% 60% 40% 20% 0% Flexible Fuel Vehicle forecast More than 6.0 million FFV was sold till 2008 Gasoline Ethanol FFV Natural Gas

10 Biodiesel s s target and market 2008 (2% mandatory) 2009 (4% mandatory) From 2013 (5% mandatory) Brazilian market 840 million liters Brazilian market 0,8-2,5 billion liters Brazilian market More 2,5 billion liters

11 Feedstock Options for Biodiesel Castor-Oil Plant Sunflower Soy Palm Cotton Likely Output of Culture 1,500 kg/ha 1,500 kg/ha 3,000 kg/ha 20,.000 kg/ha 3,000 kg/ha Percentage of Vegetable Oil 47% 42% 18% 20% 15% Vegetable Oil Production (kg/ha) Production in 2005 in Brazil m3/year 90,000 23,000 5,600, , ,000 SOURCES: Embrapa, MDA, IBGE, CONAB

12 56 Biodiesel Plant 3 Petrobras s biodiesel plant 11 Strategic storage of Petrobras 64 Petrobras terminal Biodiesel plant and logistics

13 Matrix Energy of Brazil 2008 Renewable: 45,4 % 251,5 Millions tep Oil 37,3% Biomass 31,5% World Japan Brazil Renewable Non Renewable Natural gas 10,2% Coall 5,7% Nuclear 1,5% Hidraulic 13,9% Fonte: Resenha Energetica Brasileira 2008 Ministério de Minas e Energia (MME) 13

14 OVERVIEW OF BRAZIL BIOFUEL BUSINESS FORECAST OF BIOFUEL IN BRAZIL

15 Brazil is able to expand production of food and bio fuel Total area (mm ha) 851,0 Amazon Forest 350,0 Atlantic Forest 35,0 Pantanal 13,0 Preserved area 7,0 Cities, lakes and roads 20,0 Total 425,0 Amazon Forest Total area (mm ha) 851,0 Preserved area 425,0 Pasture 210,0 Soybean 21,5 Corn 13,7 Sugarcane 7,5 Bean 4,0 Rice 2,9 Coffee 2,3 Cassaba 1,9 Wheat 1,7 Cotton 1,1 Orange 0,8 Others 1,6 Pantanal Iguaçu falls Available more than 70 million ha 426 Food & Biofuel Atlantic Forest Preserved area

16 Agricultural productivity growing Production (thousand ton) Planted area (thousand hectares) Produtivity + 79% Source: Conab, Aliceweb e Embrapa. Nota: dados estimados para

17 Evolution of Ethanol Productivity

18 Exportation of ethanol from Brazil 6 5 million kl

19 Forecast of ethanol in Brazil Year Production Consumption Surplus Million kl Production Consumption Surplus

20 Forecast of passenger car in Brazil % Vehicle % % % Gasoline Ethanol Flexfuel Diesel Fonte: Estratégia / Petrobras 20

21 OVERVIEW OF BRAZIL BIOFUEL BUSINESS INVESTMENT OF PETROBRAS IN BIOFUEL

22 Petrobras Business Plan 2009 to US$ billions 11,8 2,8 5,6 3 3,2 7% 3% 2% 2% 2% E&P RTC G&E 43,4 25% 59% 104,6 (*) Petrochemicals Distribution Biofuels Corporate (*) US$ 17 billion allocated to Exploration

23 Investment of Petrobras Total Investment = US$ billion Exploration and Production Refining, Transportation and Trading Distribution Gas & Energy Petrochemical US$104.6 US$ 43.4 US$ 3.0 US$ 11.8 US$ 5.6 Pre-salt Development:Roncador,Jubarte, Marlin,etc Exploration News Refineries Conversion Units/Quality of products Marine transport, pipelines and terminal LPG distribution Quality control Logistics and infraetruture Pipelines and terminal Power Plants Renewable energies Comperj complex. Suape Complex Second generation petrochemical units Biofuel US$ 2.8 Ethanol Production Biodiesel Production Logistics, R&D Visit our website:

24 Petrobras Biocombustível S.A. (PBIO) A New Subsidiary for Biofuel Production In July of 2008 PETROBRAS BIOCOMBUSTIVEL S.A - PBIO, a subsidiary of PETROBRAS was created with the purpose of producing bio fuels; PBIO has three biodiesel plants located in Northeast region and Brazilian semiarid area, with total capacity of 171,000 m 3 /yr R&D on bio fuels is developed by PETROBRAS Research & Development Center, Cenpes, located in Rio de Janeiro. Budget :US$ 530 Million

25 Ethanol Production by PBIO

26 Biodiesel Production by PBIO

27 Petrobras s new logistics to export ethanol Aparecida Taboado São Simão Senador Canedo Itumbira Uberaba Trasnport Existing pipeline New pipeline New pipeline New pipeline New water way New pipeline Capacity (million kl/year) Start up Des / 2010 Des / 2010 Des / 2010 Nov/ 2011 Sep/2012 Sep/2012 MS Bataguassu 5 São Paulo Araçatuba Sta. Maria da Serra Ribeirão Preto 6 REPLAN 3 REVAP Minas Gerais REDUC Taubaté 1 Rio de Janeiro Ilha D água Parana 4 São Sebastião Export Capacity From million kl

28 Overview of Biofuels Process Synthetic Fuels Biofuels 1. Generation 2. Generation Feedstocks oils / fats Sugar Plants Biomass Vegetable oils, animal fats Sugarcane, beat, corn Energy plants, biowaste, bagasse, straw, wood Natural Gas Coal Process Transesterification Fermentation Enzymatic Hydrolysis, Fermentation Gasification, FT-Synthesis, Product upgrading Product Biodiesel FAME Ethanol Cellulosic ethanol BTL GTL CTL

29 Technological strategy Deployment of 1st generation technologies (HBIO and Biodiesel) Demonstration plant of Cellulosic Ethanol R&D 2nd generation technologies (BTL and Bio-oil) Demonstration plant of 2nd generation technologies (BTL and Bio-oil) Deployment of Biorefinery concept

30 OVERVIEW OF BRAZIL BIOFUEL BUSINESS BRAZIL AND ASIAN COUNTRIES

31 Brazil Partnership to produce ethanol JAPAN ALCOHOL TRADING CO., Ltd. BJE was created in 2006, to develop ethanol market in Japan -New concept of ethanol production in Brazil dedicated to exportation. -Many Japanese companies are analising the possibility to invest in Brazil. Other Companies Cooperation to increase production of bio fuel in Indonesia. Cooperation to increase production of bio fuel in India. Cooperation to use biofuel in Korea. Cooperation to produce biofuel in Vietnam Other Countries Source:Prof. Lauta Tettis - USP

32 Partnership to ethanol production New New ethanol ethanol production production to to meet meet the the increase increase of of internal internal and and international international demand demand in in a long long term term basis, basis, with with sustainability sustainability and and no no impact impact on on food food production. production. Investors Target Markets Sugar cane Producers Potential Market Petrobras Biocombustível

33 Petrobras in Japan Nansei Sekiyu K.K Tokyo Office

34 OVERVIEW OF BRAZIL BIOFUEL BUSINESS

35 OVERVIEW OF BRAZIL BIOFUEL BUSINESS FINAL COMMENTS Visit our website: Tsukuba, October 29, 2009 IEA Bioenergy Kuniyuki Terabe Petrobras General Manager