Biomass and Biogas Energy Potential in Argentina

Biomass and Biogas Energy Potential in Argentina Federico Moyano, FAO consultant at Probiomasa 1st June 2015

General topics The bioenergy within the energy context in Argentina Biomass and Biogas Potential About Probiomasa Bioenergy Projects in Argentina Probiomasa as a NAMA Absender Titel TT.MM.JJJJ Seite 2

Argentinas` Energy Sector: Biomass Participation The electricity sector (33% of the domestic energy supply in 2013) biomass sources represent less than 2% of the total mix Of 72,000 Ktoe of internal primary energy supply only 3% comes from biomass Absender Titel TT.MM.JJJJ Seite 3

Renewable Energies in Argentina The share of renewable energy sources (excluding large hydro power plants) is still relatively low. Biomass accounts for about 8% of domestic primary energy supply, and Biogas 7%. Electricity generation from non-conventional renewable energy (2013) Absender Titel TT.MM.JJJJ Seite 4

Conservative Estimation of Bioenergy Potential Data form WISDOM Argentina 2005 Direct Forest sources Direct and Indirect Non Forest Sources 106,5 million tons 6,6 million tons Assumig :1 ton/mwhe, using 5% direct forest sources and 90% non forests sources, 40/50 km radius to consumption point. Load factor of 8000 hours/yr. General estimation: 1600 MW added to the system Absender Titel TT.MM.JJJJ Seite 5

Biomass potential: accesisble biomass Estimations at the national level indicate an available and accessible biomass residues surplus of 9 Mt/yr. If residues from native forest formations (only 5%), this result in a total of 13.6 Mt/yr According to WISDOM accessible and potentially available commercial biomass = 32700 ketp, almost 50%. Absender Titel TT.MM.JJJJ Seite 6

About Probiomasa An Initiative implemented by the Ministry of Agriculture, Livestock and Fisheries (MAGyP) and the Ministry of Federal Planning (MINPLAN) with FAO technical and administrative assitance Its main objective is to increase production of thermal and electrical energy from biomass to ensure a growing supply of clean, reliable and competitive energy, while opening up new opportunities for the agro-forestry sector and helping with climate change mitigation Absender Titel TT.MM.JJJJ Seite 7

Program Structure STAKEHOLDERS AND BENEFICIARIES At LOCAL, PROVINCIAL and NATIONAL LEVEL MAIN COMPONENTS GOAL PUBLIC SECTOR EXPAND PRODUCTIVE SECTOR INSTITUTIONAL STRENGTHENING BIOENERGY STRATEGIES AWARENESS AND CAPACITY BUILDING BIOMASS USE FOR ENERGY PURPOSES COMMERCIAL SECTOR RESIDENTIAL SECTOR DIFFERENT PROGRAM ACTIONS Absender Titel TT.MM.JJJJ Seite 8

Short term Goal Triple biomass participation in the national energy matrix, through: Increasing biomass consumption by at least 12 M tn/yr Substituting fossil fuels imports by approximately US$ 2 billion/yr Attracting new investments totaling an estimated US$ 500 million for the generation of 200 Mw thermal and 200 Mw electric Absender Titel TT.MM.JJJJ Seite 9

About Probiomasa In summary, PROBIOMASA works as a platform that links the public and private sectors at local, provincial and national levels, providing access to technical, economic and financial resources for the development of bioenergy projects Absender Titel TT.MM.JJJJ Seite 10

What does PROBIOMASA offer? Evaluates availability of biomass resources for energy generation using WISDOM methodology (Woodfuels Integrated Supply/Demand Overview Mapping, created by FAO). Biomass Supply and Demand Balance Interactive query tool reflecting the availability of biomass resources in specific geographic locations. The tool provides information on residual biomass resources in the field and those derived from the processing industry (tn). Absender Titel TT.MM.JJJJ Seite 11

What has been done? Letters of Intent signed with: Entre Ríos Misiones Mendoza - La Pampa Tierra del FuegoSalta Tucumán UIA AFOA y FADA 12 Implementation Provincial Units are being established responsible for carrying out and update the Provincial Spatial Analysis of bioenergy potential Absender Titel TT.MM.JJJJ Seite 12

What has been done? Scholarships for biogas courses (producers, professionals andtraining on WISDOM methodology of technical staff the ministries Events sponsorship and participation New WEB SITE http://www.probiomasa.gob.ar Production of Technical Papers Marketing Material and Brochures Absender Titel TT.MM.JJJJ Seite 13

What does Probiomasa offer? BUSINESS INCUBATOR New Projects and Initiatives Project Screening and Selection PROBIOMASA Assistance Selected Projects Biomass resources assessment Technical and Managerial Assistance Financial and Investment advisory Specific Studies Training Absender Titel TT.MM.JJJJ Seite 14

What has been done? Identification, analysis and selection of bioenergy projects Definition of main barriers affecting the development of projects Design of tools to help projects overcome barriers Identification of funding sources 30 projects 220 MW eléctricos 200 MW térmicos Project Formulation, Feasibility studies, articulation with Universities Conection with Finance Sources: Fonarsec, CAF, China, BICE, Banco Nación Other: tech suppliers, WISDOM, energy supply contracts energía, etc Absender Titel TT.MM.JJJJ Seite 15

Identified and Selected Projects Amount of Projects = 128 Cartera Feasibility, 21 Construcción 56 61 Idea; 26 470 MW Operativo 13 Prefeasibility 14 Out of 128 identified projects, 61 have not started construction yet, more than half of which have made certain progress (pre-feasibility and feasibility studies) Absender Titel TT.MM.JJJJ Seite 16

Identified and Selected Projects 140 Amount of MW and Status by Province 120 100 80 60 Construcción Cartera 40 20 0 Most projects are concentrated in five provinces, being the ones that have more developed forestry and sugar cane sectors Absender Titel TT.MM.JJJJ Seite 17

Identified and Selected Projects 1% 3% 4% 1% 3% 3% 2% 3% 3% 8% Projects by source of biomass 7% 1% 1% 1% 1% 1% 1% 8% 8% 44% Foresto-industrial Industria azucarera Industria avícola Cereales & Oleaginosas Industria porcina RSU Industria arrocera Industria citrícola Residuos agrícolas Forestal Industria de la mandioca Industria manicera Industria Yerbatera Industria aceitera Industria de levaduras Industria Olivícola Feedlot Tambo Industria electrónica Forest and sugar cane industry residues represent 50% biomass types identified Absender Titel TT.MM.JJJJ Seite 18

Some of the identified projects Projects already commissioned: biomass cogeneration Company Name Province Installed Capacity Aceitera General Deheza Córdoba 11 MW Biomass source Cereales & Oleaginosas Alto Paraná (Celulosa) Misiones 40 MW Foresto-industrial Alto Paraná (Aserradero MDF) Misiones 38 MW Foresto-industrial Don Guillermo S.R.L Misiones 3 MW Foresto-industrial Papel Misionero S.A.I.F.C. Misiones 15 MW Foresto-industrial Tabacal Agroindustria Salta 40 MW Industria azucarera Ingenio Santa Bárbara Tucumán 8 MW Industria azucarera Absender Titel TT.MM.JJJJ Seite 19

Projects in Portfolio Projects with pre or feasibility studies looking for financing Project Province Type Installed Capacity Biomass source Fundación Parque Tecnológico Misiones Misiones Electricity generation 12 MW Forestry industry Cooperativa Tabacalera de Misiones Misiones Electricity generation 6 MW Forestry industry Enrique R. Zeni y Cía. S.A.C.I.A.F.e I Corrientes Cogeneration 8 MW Forestry industry Parque Industrial Santa Rosa Corrientes Cogeneration 11 MW Forestry industry FRESA (Pomera Maderas) Corrientes Cogeneration 40 MW Forestry industry Avícola Las Camelias S.A. Entre Ríos biogas- Electricity generation 0,6 MW Poultry industry Parque Industrial Federación Entre Ríos Cogeneration 300 kw Forestry industry Ingenio Ñuñorco Tucumán Cogeneration 8 MW Sugar cane industry Corfone Neuquén Electricity generation 2 MW Forestry industry Solamb SRL Santa Fe biogas- Electricity generation 1 MW Seeds & grains Adecoagro Dairy farms La Lacteo Santa Fe biogas- Electricity generation 1-3 MW Dairy farm Papelera Mediterranea Corrientes Cogeneration 15 MW Forestry industry Gral. Pirán Biogas guano aviar Buenos Aires biogas- Electricity generation 0,6 MW Poultry industry Proyecto Aserraderos de TOLHUIN Tierra del Fuego Electricity generation 0,5 MW Forestry industry Cooperativa Eléctrica de Río Grande Tierra del Fuego Electricity generation 0,8MW Industria electrónica IBS / Ledesma Jujuy biogas- Electricity generation 5 MW Sugar cane industry IBS / Carmen de Patagones Buenos Aires biogas- Electricity generation 1 MW Agricultural residues Villa Guillermina Santa Fe Cogeneration 15 MW Forestry Planta RSU de Esquel (CIEFAP) Chubut Cogeneration 2 MW Forestry industry YPF - Central térmica El Bracho Tucumán Cogeneration 50 MW Sugar cane industry Granja Porcina Lartirigoyen La Pampa biogas- Electricity generation 1 MW Industria porcina Cluster Semillero Santa Fe Cogeneration 10 MW Seeds & grains Redruello (Fonarsec) Formosa Cogeneration 2,4 MW Forestry Sogico (Fonarsec) Chaco Cogeneration 2,4 MW Cotton industry OIL FOX S.A. Buenos Aires biogas- Electricity generation 1 MW Poultry industry Absender Titel TT.MM.JJJJ Seite 20

Identified Barriers Type of barrier Barrier description Regulatory Lack of implementation of measures to promote Law 26,190. Complex admission process to the wholesale electricity market. Lack of a standardised process in the allocation of electricity tariffs Financial Poor access to international finance and foreign investment for biomass energy projects Limited availability of credit lines with favourable conditions (long and medium term loans with low interest rate) for renewable energy investments. Economic Low electricity tariffs. Uncertainty in the private sector about the existing support instruments Probiomasa has being working on different fronts to overcome the identified barrier Absender Titel TT.MM.JJJJ Seite 21

Probiomasa NAMA PROBIOMASA has been conceptualized as a National Appropriate Mitigation Action (NAMA) to look for Climate Change financing Through the displacement of grid electricity, replacement of fossil fuels and the decrease in decay of biomass residues the Program is expected to reduce: 1,2 M tco 2 e/yr in 2016 and 8,3 M tco 2 e/yr in 2030 Actions taken: Application to International NAMA Facility Development of NAMA conceptualization study with CAF finance support To be presented at Green Climate Fund Absender Titel TT.MM.JJJJ Seite 22

NAMA Structure NAMA PROBIOMASA PROBIOMASA Program Financial mechanism Technical support Institutional support Mechanism for self-supply, distributed power and grid connection projects up to 10 MW Finance mechanism for grid-connected projects over 10 MW Capacity building and professional training Project technical support Research Dissemination and awareness raising Targeted at politicians, enterpreneurs, scientists, industry and general public Absender Titel TT.MM.JJJJ Seite 23

NAMA Financial Mechanism Absender Titel TT.MM.JJJJ Seite 24

Final Comments Argentine bioenergy potential is large. Promoting it can bring great benefits to the country and the productive sectors. Probiomasa facilitates the development of projects supporting them on several fronts: financial, technical, administrative, etc. Encouraging financing and investment in bioenergy projects is one of the key support elements of Probiomasa Absender Titel TT.MM.JJJJ Seite 25

Thank you! Federico Moyano federicomoyano@hotmail.com Absender Titel TT.MM.JJJJ Seite 26