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FACING ENERGY SECURITY IN THE AMERICAS THROUGH AGROENERGY SOURCES. Roberto Rodrigues. Washington / USA - October, 28th 2008 - OAS. The ten biggest problems for the humanity in the next 50 years. AGRICULTURE.
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FACING ENERGY SECURITY IN THE AMERICAS THROUGH AGROENERGY SOURCES Roberto Rodrigues Washington / USA - October, 28th 2008 - OAS
The ten biggest problems for thehumanity in the next 50 years AGRICULTURE Energy EducationWater Democracy Food PopulationEnvironment DiseasePoverty Terrorism & war Source: Alan MacDiarmid, em São Carlos – SP
Trends Changes in the demand:Sustainability:Economical, social and environmental- flavor - quality - traceability - health - environment - organic products 3 04/11/2019
Increase.% Part.% 2000-2025 2025 China 13.2% 17.4% India 36.6% 16.8% Africa 68.9% 15.4% World 33.9% 100% Food Demand(2000 – 2025) + 62.0% Trends Demographic trends: Source: Bourlaug, N., Agroanalysis, Vol. 27, nº 03 (março/2007) Elaboration: GV Agro
Rural billion of people Urban Trends Projection of the urban and rural population in the world Source: ONU Elaboration: GV Agro
Trends Evolution of GDP (2006-2013) • World:4.6% a.a • Countries of G-7: 2.2% a.a • Developing countries:7.1% a.a Participation in the world GDP 2006 2013 Countries of G-7 Países do G-7 59.5% 53.6% Others devoloped 15.8% 15.6% Developing countries 24.7% 30.8% 6 04/11/2019 Source: FMI Nota: PIB a preços de 2005
World: offer and estimated demand for food (in million tons) Source: FAO (2003) Elaboration: AGE – MAPA ¹ all of consumed meats
Global stockpiles Elaboration GV Agro Source: USDA (out/08)
Global stocks of grains Production x Consumption*: total in the period (2000/01-2007/08) Brazil produces surpluses to supply the world stocks Source: USDA Note: * Soybean, Corn, Wheat and Barley. In thousand tons Elaboração: GV Agro
Brazilian agribusiness exports Main products (by value) - 1965 Source: UN COMTRADE Elaboration: GV Agro Agribusiness Exports: US$ 1.35 billion (84.4%) Total Brazilian Exports: US$ 1.59 billion 10 04/11/2019
Brazilian agribusiness exports Main products (by value) 11 04/11/2019
Brazilian Agribusiness Exports US$ 20.5 bi US$ 63.9 bi Developing Countries from US$ 6.2 bi to US$ 29.1 bi Variation (2000-2008*): +21.3% a.a. Developed Countries from US$ 14.4 bi to US$ 34.8 bi Variation (2000-2008*): +11.7% a.a. 12 Source: Aliceweb-MDIC. Nota: * from jun/07toa mai/08 Elaboration: GV Agro 04/11/2019
Brazilian production of grain - 27.2 million tons The use of high technology resulted on an increase of 99% in productivity at the period from 1990/1991 to 2007/08. 13 * 1ª Estimate (october/2008) Source: CONAB Elaboration: GV Agro 04/11/2019
Brazil: meat production Broiler +200% Beef +77% Pork +130% 14 Sources: ABIEC, ABEF e ABIPECS Notes: *Estimative 04/11/2019
21st Century: the beginning of a New Era % Challenge: TO DIVERSIFY ENERGY SOURCESUp to 2030, the world demand for energy should increase 58%. Sources: Nakícenovic, Grübler and MaConald, 1998 and Energy Information Administration - EIA/USA
Organization of the market • More countries producing • Elimination of myths • Global strategy 17 04/11/2019
More countries producing Energetic matrix – Brazil and World Brazil World Renewable sources:45.8% Participation in the total consumption 2.1% 48.5% 100% In 2007, sugarcane became the second main source of energy in Brazil. World total: 11,434 Mtep Source: MME/BEN (2007) Elaboration: GV Agro
More countries producing Energy: consumptionper capita (2006) Tropical region: favourable to the sugarcane production 100 countries could supply biofuels to 200 nations, while currently 20 oil producers provide fossil fuels to the rest of the World. Tons oil equivalent Source: BPStatistical Review of World Energy Elaboration: GV Agro
Demand for planted area34,4million ha(using E-20) Marketpotential for ethanol Substitution of part of the gasoline 3 CENARIOS: E-5, E-10 and E-20 World: potential demand for ethanol (billion liters / year) Worldwide demand for ethanol in the 3 cenarios (billion liters / year): 60.1 120.2 and 240.5 Sources: IEA, CONAB e IBGE Notas: para o cálculo da área, considerou-se um rendimento de 7.000 litros/ha. Elaboration: GV Agro
There is still a lot of arable land worldwilde “Taking these data at face value, and in relative terms, there is greatest potential for agricultural expansion in Sub-Saharan Africa and in South and Central America, which together form over 70% of the global potential increase.” Source: LAND RESOURCE POTENTIAL AND CONSTRAINTS AT REGIONAL AND COUNTRY LEVELS FAO Rome, 2000
Ethanol world production: projection to 2012 22 Note: projections 2008/2012 are based on the capacity of production and the target of consumption of the main countries Source: Fapri, Acti, FO Licht, Unica and Toepfer Elaboration: UNICA 04/11/2019
Eliminating all myths Emissions of CO2 in 2005: 20 main polluters 50% of emissions 23 Source: Embrapa Monitoramento por Satélite Elaboration: GV Agro 04/11/2019
Emission of GHG through the replacementof gasoline by ethanol Ethanol from beet(E.U) Ethanol from corn(USA) Ethanol from sugarcane (Brazil) Compared to diesel, biodiesel reduces in about 50% of the CO2 emissions. The replacement of 1,000 buses (diesel) by buses that use ethanol would avoid the emission of 96 tons of CO2 per year, equivalentto emissions of 20,000 cars with gasoline. Since 1970, is estimated that the use of ethanol in Brazil has avoided emissions of 644 million tons of CO2 and 25.8 million tons last year. 24 04/11/2019
Eliminating all myths Production with sustainability Source: IBGE and CONAB
Eliminating all myths 7.1 million of ha were preserved Sugarcane: evolution of the productivity Production(million tons) Preserved Area ** Planted Area(million ha) Source: IBGE (Censo Agropecuário: 1970-1975-1980-1985; PAM (1990 até 2006); e LSPA (2007 e 2008) Elaboration: GV Agro Note: * Estimate **Area calculated by the productivity of 1970
Eliminating all myths 9.3 Balance of energy Energy contained in the fuel / Used fossil energy to produce fuel * Fuel completely not renewable has value lower than 1.* Values superior to 1 indicate how much renewable is the fuel. Source: World Watch Institute
Biofuels: production costs 2.00 1.80 Energy costs 1.60 1.40 1.20 Processing 1.00 costs 0.80 0.60 Feedstock 0.40 US$/l gasoline equivalent costs 0.20 0.00 - 0.20 Co - product value - 0.40 04 05 06 07 04 05 06 07 04 05 06 07 04 05 06 07 04 05 06 07 Net price Ethanol Ethanol Biodiesel Ethanol Ethanol gasoline Sugar cane Maize Rape oil Sugar beet Wheat Net costs, total Brazil USA EU EU EU Year, fuel type, country Source: OECD
Brazil: Automobilesand light vehicles – fleetprojection (2006 to 2015) million of vehicles Sources: ANFAVEA, MAPA and ICONE
Soil and climate adapted to the sugarcane production without irrigation Eliminating all myths Excluded the Amazon Region, Pantanal and declivity superior to 12% Source: UNICAMP
Eliminating all myths Brazil: herd of cattle x pasture pasture area cattle (heads) More efficient livestock liberation of land for the agriculture Source: IBGE (Censo Agropecuário) e IEA/SP Elaboration: GV Agro *lotação média de São Paulo (2006)
Global strategy Energy content of the sugarcane Energy contained in 1,000 tons of sugarcane(tons in petroleum equivalent ) Total energy: 162.59 tons in petroleum equivalent Source: Nastari, Lisbon, 2000
Global strategy Estimatesofthepotentialofbioeletricity in Brazil The bagasse resulting from the processing of the cane represents 30% of the total volume. Raw material for the bioeletricity production Source: Cogen and Unica
Participation of the products in the income of the sector Exports Bioelectricity- Potential - Ethanol Domestic 51% Exports Sugar 32% Domestic Source: UNICA Note: For the calculation of the percentile of 2015/16 it was used as base the potential for production and export at constant prices of 2006.
Challenges to the sector • Commercial limitations? - protected markets - internal oil protection - self-sufficiency (target of the countries) - low/high prices cycles• Constant Expansion of the Offer - offer and demand balance - investments
Challenges to the sector • Sectorial Regulation• Research and Development• Planning• Administration
The ethanol certifications “Babel” National Certifications EU Directives European Union ETHANOL PBCB Brazilian Biofuel Program Certification Brazilian Government Biofuel CertificationMeó Consulting Team German Government Sustainable Production of Biomass Cramer Commission Dutch Government RTFO Renewable Transport Fuel Obligation UK Government Institutional Certifications RTSB Round Table on Sustainable Biofuels Based in Switzerland Certifications proliferation schemes is counterproductive: discourages initiatives and investments, particularly in developing countries. BSI Better Sugarcane Initiative Based in United Kingdom Deprived certifications SEKAB, GREENERGY Sweden, United Kingdom 37 04/11/2019
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