Learning from creating a world class biofuels industry in Brazil. Alexandre Strapasson

Transcription

1 Learning from creating a world class biofuels industry in Brazil Alexandre Strapasson Conference of the Biorefining Alliance at The Danish Parliament Copenhagen, 25 th Nov 2013

2 KEY FIGURES ABOUT BRAZIL GDP: US$ 2.4 trillion (7 th world), source IMF 2012 Territory: 8.51 million km 2 (5 th world) Electricity: 121 GW (capacity), 593 TWh (generated) Share of renewables: 84.5% (Brazil) vs. 19.7% (World) Population: 200 million inhabitants, source IBGE 2013 PRIMARY ENERGY MIX: BRAZIL VS WORLD 100% 90% 86.8% 80% 70% 60% 43.6% 42.4% Renewable 50% Non-renewable 40% 30% 20% 13.2% 10% 0% Brazil World Source (all energy data): BEN (2013), ref. Brazil 2012, World 2010 Source: Itaipu Source: Strapasson Brazilian primary energy mix: Sugarcane biomass: 15.4% eq. to 43.6 Mtoe Sugarcane GDP: US$ 50 billion (source: UNICA and MAPA)

3 Timeline of the sugarcane-based ethanol in Brazil 1975 Pro-Alcohol Programme 1990 Open market TODAY SUGARCANE MULTIUSE FUTURE CO 2 Portugueses introduced sugarcane in Brazil First ethanol powered vehicle tested in Brazil First commercial ethanol vehicles Flex fuel vehicles were launched New technologies (biorefinery concept, lignocellulosic ethanol, bioplastics, sugarcanebased diesel etc.) Source: Strapasson (2013)

4 Sugarcane, Sugar and Ethanol Productions in Brazil Sugarcane (Mt) Sugar (Mt) and Ethanol (Mm 3 ) Sugarcane production (million tonnes) Anhydrous ethanol (million m 3 ) Hydrous ethanol (million m 3 ) Sugar (million tonnes) Source: Strapasson et al (in press), database MAPA (2012) and Conab (2013)

5 Energy, productivity and carbon balances ETHANOL Raw material Energy balance ( output / input ) Produc9vity (litres) Mean values under a life-cycle analysis (LCA) GHG Reduc9on (based on US and EU legisla9ons) Wheat (EU) 2.0 2, % Maize (USA) 1.4 3, % Sugar Beet (EU) 2.0 5,500 52% Sugarcane (Brazil) 9.3 7, % Sources : World Watch Ins9tute (2006) and Macedo et al. (2008) for the energy balance; IEA (2005), MTEC, EU Commission, EPA and UNICA for produc9vity; and IEA (2004) and Macedo, I. de C. et al. (2004 and 2008) for GHG balance. All references apud UNICA (2012). The s ame values were also recently present ed by CTC (2012), based on CTC, USDA, IEA and CEFS databases Note : GHG reduc9on represents the avoided emissions from the use of ethanol as a subs9tute of gasoline (LCA approach) UNICA & CTC, 2012

6 Integration of sugarcane co-products Leftovers Source of carbon, soil protection and fertilising effect Bagasse Source of energy (CHP systems) Vinasses (industrial liquid residue) Source of nutrients, mainly Potassium

7 Ethanol production costs (hydrous ethanol) in Brazil Production Costs US$ / m³ (levelized in 2005) Total ethanol production cost and feedstock costs from 1975 to 2010 R² = 0,97122 R² = 0, Total production cost Feedstock costs (Sugarcane) Source: Pacini & Strapasson (2012) in Journal of Contemporary European Research - JCER

8 Sugarcane production sites Source: UNICA (2010)

9 Land use in Brazil Land use Area ( Mh a) % Pasture Crops (yearly and perennial), except sugarcane Sugarcane* Woods and agricultural forests Amazon forest, protected areas, cifes and others Total Source: IBGE (2010), based on Brazilian Census * MAPA (2011): area related to the sugarcane produc9on for sugar and ethanol only, excluding sugarcane for other purposes e.g. cachaça (sugarcane spirit) and fodder. Edited by Strapasson & Job (2010)

10 Sugarcane Agroecological Zoning - Pioneering biofuels zoning in the world; - Precautionary measure and additional environmental request; - Based on satellite images and in loco analysis; - Aim to lead sugarcane expansion towards explored lands, mainly on pasture areas, which can be intensified, avoiding food competition; - Give a technical support to governments for drawing new public policies for the sustainable and planned expansion of this sector.

11 Sugarcane Agroecological Zoning Restricted areas for the sugarcane expansion in Brazil: - Amazon and Pantanal (swampland) biomes - Lands with any kind of native vegetation - Lands without soil and climate favourable conditions - Lands that would require full irrigation for producing sugarcane - Topography > 12% (slope), in order to stimulate mechanical harvest - Protected areas and indigenous reserves - Lands with high conservation value for biodiversity (UN concept)

12 Sugarcane Agroecological Zoning LEGAL FRAMEWORK: Presidential Decree 6.961/2009; MAPA Normative Instruction 57/2009; Bacen (Central Bank of Brazil) Resolutions 3.813/09 and 3.814/09; Federal Law Project 6.077/2009; Ministerial Decree 333/2007 (Portaria MAPA). Since its implementation in 2009, all the new sugarcane industries installed in Brazil have been attending this zoning in full compliance to the Brazilian legislation. Source: MAPA & Embrapa (2009)

13 Last reflections Ø A balanced scale for the biofuels expansion can be determined through zoning schemes, as a platform for sustainable public policies, with the purpose of promoting synergies with food production instead of competition. Ø Climate policies should not impose tariffs on biofuels, whilst having almost tax free for oil. Also, best performing biofuels should be rewarded. Ø Certification schemes may help to promote sustainable biofuels trade, but little has been demanded from the EU certification initiatives to date (e.g. Bonsucro). Ø Biofuels can act as a vector of rural development, and also catalyse investments for food production, generating more jobs than fossil fuels per energy unit. Ø Biofuels can be produced in several countries, mainly in the tropical region, but are also technology dependant, which represents a great business opportunity for increasing collaboration between developed and developing countries.

14 Thank you! Contact: Alexandre Strapasson Research Associate Centre for Environmental Policy Imperial College London 14 Prince s Gardens, South Kensington, London SW7 1NA. alexandre.strapasson@imperial.ac.uk Personal webpage: