Transcript Slide 1

1ER CONGRESO INTERNACIONAL DE BIOCOMBUSTIBLES
The Brazilian Experience on Biofuels
Luthero Winter Moreira
Downstream Area
Guadalajara, Mayo 07-08, 2008.
Disclosure
The presentation may contain forecasts about future events. Such forecasts
merely reflect the expectations of the Company's management. Such terms as
"anticipate", "believe", "expect", "forecast", "intend", "plan", "project", "seek",
"should", along with similar or analogous expressions, are used to identify
such forecasts. These predictions evidently involve risks and uncertainties,
whether foreseen or not by the Company. Therefore, the future results of
operations may differ from current expectations, and readers must not base
their expectations exclusively on the information presented herein. The
Company is not obliged to update the presentation/such forecasts in light of
new information or future developments.
Ethanol: 30 Years of Experience
Fuel Ethanol Program Evolution
Ethanol
Program
Implanted
(BLENDS)
Gasohol and
Ethanol Cars
(2nd oil shock)
Program for Oil Imports
Reduction
70’s
80´S
Program of
Emission
Control
(PROCONVE)
Gasohol and
Flex Fuel
Cars
Cellulosic
Ethanol and
Renewable
Hydrogen
Environmental Benefits
90´S
00´S
Future
Brazil is the 1st country to get benefits from Ethanol
Original drivers were energy security and
economic attractiveness.
CNG
ETHANOL
Today environmental benefits are also a
consideration.
GASOLINE
160000
Fuel demand for Otto Cycle
Vehicles
140000
120000
10000
80000
60000
1000 BEP
40000
20000
Source: MME, BEN 2006
0
1972
1976
1980
1984
Accumulated effective
economy:
1 billion boe ~US$ 52 bi
1988
1992
1996
2000
2004
In this period, the use of ethanol avoided 644 million tons of CO2 emissions.
A Brief History of Ethanol and Petrobras by the End of Oil Monopoly
1976/1977
- PB creates the first task force to study
blending operations
- PB starts to convert storage tanks and
tankers for ethanol transportation
1978/1979
- PB starts to export fuel ethanol
- The first 35 PB service station pumps
for ethanol are installed (SP and RJ)
1986/1997
- PB issues over 130 papers and
studies on all aspects of ethanol
handling and distribution
- PB consolidates over 40 internal
procedures related to ethanol
handling
1980/1981
- PB develops LUBRAX, the first lubricant for ethanol cars
- PB is appointed responsible for handling the safety stock
of ethanol
- PB starts to produce ethene from ethanol
1982/1983
- PB broadens its scope and encompasses internal
market as well as international market for ethanol
- PB concludes coastal shipping plans for ethanol
1973
OIL SHOCK
Source of ethanol production data: UNICA
Source of Petrobras developments: PETROBRAS
A Brief History of Ethanol and Petrobras after the End of Oil Monopoly
1997
- Creation of Petrobras Transporte and
end of PB monopoly in the Brazilian oil
market
1998/2001
-The Brazilian market starts to
adjust itself to the new rules
1997/2007
- PB issues over 80 new papers and studies on all aspects of
ethanol handling and distribution
- PB updates its internal procedures related to ethanol handling,
including new technologies for Pipeline Integrity Management and
dye handling
2005
- Petrobras Transporte converts in 15 days 80,000 m3 from diesel to
ethanol. It’s the first increase in storage capacity since 2003
- Petrobras Transporte has to adapt it’s logistics to handle the dyed
ethanol. From that point on, there would be 3 different specifications
of ethanol in the PB system
2001
- After a steep drop, the price of oil
reaches its lowest point
Source of ethanol production data: UNICA
Source of Petrobras developments: PETROBRAS
2003
- The first contracts to follow the new rules
established in 1997 for ethanol transportation in multiproduct pipelines are signed
Estimated Ethanol Production in 2008 – 70.5 Billion Liters
North and Central
America
45.8%
Europe
9.2%
Brazil
32%
South America
Asia & Africa
32.6%
12.4%
More than 75% of all ethanol is produced by Brazil and USA. Brazilian exports in 2007: 3.5 billion liters.
World ethanol consumption is 3.7% of gasoline market.
Increasing ethanol blending in the world to 10% would represent 187 billion liters.
Source: F.O.Licht
Petrobras Partnerships to Introduce Ethanol as a Fuel
Nigeria / South Africa
:: Petrobras is providing technical cooperation in logistics
and blending know-how.
Japan
:: Recently, Petrobras has incorporated Brazil-Japan Ethanol Inc.
(Joint Venture of Petrobras and Japan Alcohol Trading);
:: The Company will import and distribute Brazilian ethanol in Japan;
:: Development of technical and commercial solutions for a reliable, long
term supply of ethanol to the Japanese market;
:: Petrobras intends to introduce fuel ethanol into one of the most complex
and important energy markets in the world:
• ethanol for power generation,
• fuels distribution in Japanese market,
• logistics for distribution of ethanol in Japan and other Asian markets.
R&D - Petrobras Projects on Biofuels
Research on lignocellulosic ethanol (2nd generation biofuels) using
sugar cane bagasse as raw material:
- Pilot plant start-up: 4thQ 2007;
- Demonstration plant start-up: 3rdQ 2010;
- Property of process (patent already issued).
HBIO: process of crude oil refining that uses vegetable oils as raw
material to obtain a cleaner diesel oil by hydrogenation of a blend of
diesel and vegetable oil.
Biodiesel: research on new raw materials, improvement of industrial
process, quality of product, and tests with engines.
Summary – Petrobras’ Technological Roadmaps on Biofuels
Stages
Petrobras’ Technology Evolution
2006 - 2010
2011 - 2015
2015 - 2020
Large-scale
deployment
Technology
implementation
(1st industrial unit)
Demonstration
(Prototype unit)
R&D
(including pilot plant)
HBIO
Biodiesel
Lignocel. Ethanol
Business Strategies
Renewable Energy
2008-2012
Investments
Biodiesel Plants
H-Bio (Bio-Refining)
2012 Target
US$ 1.5 billion
Investments
Availability of 938,000
m3/year
Vegetable oil Processing
1.6 million m³/year
4%
21%
Ethanol pipelines
Ethanol Project
Vessel
Aeolic Energy
Solar Energy
Other Sources of
Renewable Energy
29%
Export of 4.7 million m³/year
of Ethanol
Installed Capacity of
Generation of Electric Power
from 365 MW Renewable
Sources
46%
Biofuels
Pipelines and Ethanol Pipelines
Total avoided GHG emissions: 3.93 MM tons CO2 equivalent
Others
H-Bio
Final Comments
Petrobras will continue to invest on: development of international
markets for ethanol, improvement of Brazilian export infrastructure,
and R&D of new production technologies (lignocellulosic process
and BTL).
Petrobras’ investment on the development of feasible production
technologies of 2nd generation biofuels will assure, in the longterm, the regular supply of renewable fuels, in a fully sustainable
manner – regarding economical, environmental and social aspects –
along the production chain.
In summary, Petrobras’ investments on biofuels contribute to
reduce emissions of fossil fuels, generating environmental benefits
and increasing social inclusion by creation of jobs in rural areas.
Vision 2015
Petrobras will be an integrated energy company
with a strong international presence and a
leading force in Latin America, working with
a focus on profitability and social and
environmental responsibility.