ASSESSING BIOENERGY POTENTIALS

Project Tropical Belt

Feasibility studies for bioenergy production 02 . 05 . 2011 June 2012

Motivation for bioenergy and food projects in the Tropical Belt

There is no environmental progress without social progress Tropic of Cancer

• Tropical Belt: Favorable for biofuels and food production. Equator

• Tropical Belt: The majority of countries that face fuel and food shortages are located in this specific region. Tropic of Capricorn

(tons oil equivalent) Elaboration: GV Agro Source: BPStatistical Review of World Energy

Biofuel: Helping diversify the worldwide energy matrix Liquid biofuels will continue to be used in the transportation market in the next years

• Sustainable energy, closed cycle of carbon • Reducing the dependency of the fossil fuel

• Wealth generation • Income distribution • environmental progress

Export to blending ethanol and biodiesel

Produção sustentável e Mescla de Biodiesel e Etanol

toneladas equivalentes de petróleo

Elaboração: GV Agro Fonte: BPStatistical Review of World Energy & FAO, 2010.

Context Technical Cooperation Agreement Between:
Brazil-USA technical cooperation agreement to develop bioenergy in countries in the tropical belt.
Technical cooperation agreement between the European Union and Brazil, for a feasibility study to produce biofuel and food in Mozambique. Results: 12 countries have received the feasibility studies of bioenergy project development: ethanol, biodiesel, electricity, steam and food projects.

Environmental Cooperation Agreement

Agricultural

The projects were financed by the following entities:

Current Status

Guatemala

Haiti Dominican Republic

Senegal

St. Kitts & Nevis El Salvador

Honduras

Guinea

Papua New Guinea

GuineaGuineaBissau

Tanzania Liberia Angola Zambia

Argentina

Mozambique

Information Generated Over 240 million hectare studied

Over 10,000 georeferenced photos taken

Over 25,000 km traveled on field survey Over 2,000 points of interest gathered

Information Generated Up to 14 kinds of crops

Over 100 local meetings attended

36 expeditions since 2007

About 2,400 soils samples gathered

Methodology FGV methodology combines the Brazilian experience in developing sustainable bioenergy and food projects.

Phase I

Phase II

Phase III

Phase IV

Feasibility study

Executive Project & Road Show

Implementation

Operation

Example Feasibility study

Agricultural Zoning Agro--climatic Zoning Agro Edafic Zoning Water deficit

Evapotranspiration

Rainfall

Average temperature

Social Zoning

Administrative regions

Ethnics

Population

Wetlands

Soils

Relief

Rivers

Environmental Zoning

Protected areas

Biodiversity

Anthropic areas

Example Feasibility study Agricultural zoning

Use and coverage

Example Feasibility study Agricultural zoning

Use and coverage

Location of the areas of interest for field work

Example Feasibility study Agricultural zoning

Use and coverage

Land use analysis

Example Feasibility study Agricultural zoning

Use and coverage

Checking on site

Business Family Forest farming farming areasareas areas

Example Feasibility study Agricultural zoning

Potential areas validation • Degraded areas;

• Relief;

• Suitable soils;

• Existing projects;

• Rural diagnoses;

• Existing crops;

• Infrastructure analysis;

• Cultivation forms;

• Use and coverage;

• Field evidence.

Use and coverage

Example: Honduras Project I – Biomass (Eucalyptus) Project region: Cortés. Project area: 2,200 ha; Total production: 40,000 tonnes of Biomass and 5 MW Estimated investment (agricultural and industrial): USD 10 million; IRR: 25% Project II – Biodiesel (Palm Oil) Project region: Colón; Project area: 12,000 ha; Total production: 65,000 tonnes of oil (Palm e palm kernel); Estimated investment (agricultural and industrial): USD 50 million; IRR: 26% Project III – Biomass (Elephant grass) Project region: Olancho; Project area: 1,250 ha; Total production: 50,000 tonnes of Biomass; 5MW; Estimated investment (agricultural and industrial): USD 15 million; IRR: 13% Project IV – Ethanol and sugar (Sugarcane) Project region: Olancho; Project area: 16,000 ha to 42,000 ha; Milling: 1.3 a 3 million tonnes per year; Total production: 67 to 153 million liters of ethanol and 59,000 to 140,000 t. of sugar; Estimated investment (agricultural and industrial): USD 270 a 600 million; IRR: 14,5% a 18% Motivation: •

Government support;

Phase II Executive Project PROJECTS •

R&D (transfer of knowledge & technology);

•

Agriculture;

•

Industrial;

•

Logistics;

•

Social;

•

Financial;

•

Environmental;

Data Book

Roadshow for Investors

•

Legal & Regulatory;

Investments

•

Marketing;

In Profitable

•

Risk analysis.

Projects

Target Region

NEXT STEPS

Next Steps

Priority Projects: Funds are needed to build the executive project and organize roadshows for investors to private sector.

Next Steps Nacala Corridor Agroindustrial Projects Food & Energy

Africa Biofuel, food and infrastructure

Dominican Republic Distillery of ethanol

Thank you Cleber Lima Guarany [email protected]

www.fgv.br/fgvProjects +55 21 3799 6051