The Agro-ecological Sugarcane Zoning in Brazil
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1 MINISTRY OF MINES AND ENERGY The Agro-ecological Sugarcane Zoning in Brazil Sustainable feedstock supply for bioenergy and biofuels IEA Biofuels Roadmap Workshop Discussion 3 Sustainable land use and biomass production MARLON ARRAES J. LEAL Coordinator - Renewable Fuels Department Paris, September 16 th, 2010
2 Introduction Biofuels Market in Brazil
3 Biofuels versus Fossil Fuels Fossil 0,08 x liters/year 2.5% Fósseis Fossil Biocombustíveis Biofuels World 97.5% 3,3 x liters/year Fósseis Fossil Biocombustíveis Biofuels 26% 24 x 10 9 liters/year... Brazil 74% 69 x 10 9 liters/year 2008 DATA (Source: BP / MME) Medium and light derivatives considered: Diesel, Gasoline and Jet Fuel
4 Brazilian Ethanol Production - Ten Year Plan (2010/2019) 1,200 1, ³ bpd Billion liters ethanol: strong expansion in domestic market % of Otto-Cycle vehicles demand (in volume) Source: MME/ PDE (Ten Year Plan) ( ) -
5 Flex Fuel Fleet Growth: The main driver for ethanol market expansion Allows any mixture of hydrous ethanol and gasoline C (E25 to E100) In 2009, vehicle sales registered a growth of 11% in comparison to 2008, and the historical record of 3 million vehicles was reached. Flex-fuel sales represented 88.2% in Since 2003, until June/2010, more than 11 million flex-fuel vehicles were commercialized and its share in total light vehicles fleet is estimated in 37%. 100% 80% Flex Álcool Gasolina Diesel Flex-fuel sales: From zero to 80% in 3 years! 60% 40% 20% 0% Source: ANFAVEA Elaboration: MME Jan/03 Jul/03 Jan/04 Jul/04 Jan/05 Jul/05 Jan/06 Jul/06 Jan/07 Jul/07 Jan/08 Jul/08 Jan/09 Jul/09 Jan/10 Jul/1
6 The Agro-ecological sugarcane zoning in Brazil and, from this example, what can be done in other countries
7 Brazilian Agro-ecological zoning: Rules to Guide the Sugarcane Expansion To indicate the potential areas for sugarcane expansion production without environmental restrictions and that are already used or degraded; To exclude the production of sugarcane in the biomes of Amazon, Pantanal and Upper Paraguay River Basin; To indicate preferably degraded or pasture areas, minimizing any competition with food production; To indicate potential areas with agricultural potential without full irrigation, considering climate, soil conditions and varieties to select areas where sugarcane production uses the least quantity of water possible; To indicate areas with slope up to 12% in order to allow the use of machines at the tilling. This will avoid new induced fire areas for sugarcane manual cut and orient the expansion with mechanical harvesting. The Brazilian sugarcane agro-ecological zoning was coordinated by the Ministry of Agriculture, together with the Ministry of Environment, the Ministry of Mines and the Ministry of Finance, with technical assistance of EMBRAPA (Public Enterprise of Agriculture Research)
8 Areas without environmental restrictions Brazilian Agro-ecological zoning: The areas selection Areas with slope up to 12% SOIL MAPS CLIMATE DATA Inputs of soil restrictions criteria Inputs of climate restrictions criteria Areas with adequate soil conditions Areas with adequate climate conditions Potential areas for sugarcane production Assessment of actual agriculture use Aditional constraints State Validation Phase
9 LAND USE IN BRAZIL...and sugarcane agro-ecologic zoning Suitable areas identified sum up to 64 million hectares (or 7.5% of the territory) Currently, sugarcane for ethanol corresponds to 4.2 million hectares or 1% of arable lands. Source: MAPA/Embrapa (2010)
10 LAND USE IN BRAZIL...and sugarcane agro-ecologic zoning Non-Arable Areas mi Ha (59%) Pastures mi Ha (20.2%) Annual and Permanent Food Crops 70.3 mi Ha (8.3%) Sugar-Cane for ETHANOL 4.2 mi Ha (0.5%) Oilseed Crops for BIODIESEL 2.2 mi Ha (0.3%) Available for Expansion 99.8 mi Ha (11.7%) Suitable areas identified sum up to 64 million hectares (or 7.5% of the territory) Currently, sugarcane for ethanol corresponds to 4.2 million hectares or 1% of arable lands.
11 Brazilian Agro-ecological zoning: The results The Brazilian Government published in September, 17 th 2009 the Decree Nº 6.961/2009 that: Approves the sugarcane agriecological zoning and determines the National Monetary Council¹ to establish the rules of financing/credit operations for the sugarcane sector in the terms of the agri-ecological zoning. ¹ National Monetary Council is the Brazilian higher instance responsible for making the rules of credit and monetary policies. The council is presided by the Ministry of Finance
12 The Agri-ecological zoning methodology as key-instrument for technical cooperation. Brazilian cooperation in other countries.
13 Biofuel Project Phase I Phase II Phase III Phase IV Feasibility Analysis Data Book & Road Show Implementation Operation
14 Phase I Feasibility Analysis Land Suitability for Biofuel Crops Production Capability Recommendation Phase II MAPS Land Capabilities Agro-climatic Zones CROPS SELECTION Potential Inappropriate RESULTS Investments Regulations Infrastructure Environmental Issues
15 Phase II Data Book Projects Data Book Road Show Phase III Implementation PROJECTS Agricultural Industrial Financial Environmental Legal & Regulatory COMPILATION INVESTORS
16 Agroclimatic Zoning Land Suitability Land Capability Example Phase I
17 Area of interest
18
19 Open area: ha Natural area: ha
20 Field validation: Actual infrastructure status Biodiversity conservation Field evidence
21 Local communities Local communities
22 Potential area
23 General Progress Report Phase I Feasibility Study Partner Country Dominican Republican El Salvador Saint Kitts and Nevis Haiti Honduras Guatemala Jamaica Senegal Status Completed. Completed. Completed. Completed. On Standby. Completed. Waiting for Financing. Completed.
24 General Progress Report Phase II Feasibility Study Dominican Republican El Salvador Haiti
25 Data Book: El Salvador El Salvador Ethanol Distillery: Usulutan Region Feasibility study for El Salvador s potential to produce ethanol. Sponsored by MINEC (Ministry of Economy). Presentation of the M.O.U. phase II to MINEC. Project Milling: 1.5 million tons per year. Total ethanol production: 135 million liters per year. Electricity co-generation. Agricultural cooperative. Volume of Ethanol: 20% of the country s gasoline consumption.
26 Data Book: Dominican Republic Dominican Republic Ethanol Distillery: Monte Plata Region Presentation of Phase II T.O.R. of the M.O.U. to the CNE (National Energy Committee). Presentation of Phase I and Phase II T.O.R. of the M.O.U. in the International Seminar on biofuels. Bioenergy Conference: discuss the future paths of the energy matrix of the Dominican Republic. Project Milling: 2.0 million tons per year. Total ethanol production: 170 million liters per year. Electricity co-generation. Agricultural cooperative. Volume of Ethanol: 12% of the country s gasoline consumption.
27 Data Book: Dominican Republic Haiti Thermoelectric Power Plant Les Cayes Region Presentation of phase I to Haiti government on June, Meeting with Fonkose financial services to present the second phase of the M.O.U. Fonkose will be able to finance the agricultural cooperative. Project Biomass Production: 28.,000 tons per year. Total electricity production : 5MWh. Agricultural cooperative. 3 Modules 5 MW Incremental Capacity: 8.25 to MWh offer in Les Cayes region.
28 MINISTRY OF MINES AND ENERGY THANK YOU MARLON ARRAES J. LEAL Renewable Fuels Department
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