“gree iron” Project The missing link
www.biovale.teiaslive.net
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BioVale Haus
jatropha
“ Itabira was only a portrait in the wall” Poet Drummond
Site where the bio-diesel plant will be set up
goal To set up a pool of highly professional organizations in the private and public sector to organize the bio-diesel production chain , making available to the market turn-key projects (from soil to oil) 9 promoting sustained development and poverty alleviation, creating opportunities and a new model for the intensive and extensive use of the energy biomass potential of Brazil.
cluster of skills The strategy of BioVale is to cluster the various stakeholders of the biodiesel sector, organizing and aligning them in entrepreneurial design.
STRATEGY PRODUCTIVITY
INNOVATION
The great opportunity is to cluster the best capabilities and PERFORMANCE resources to the benefit of the partners and shareholders of spinoff companies.
BIODIESEL CLUSTER
BUSINESS CLIMATE
BioVale gathers skills in Brazil and abroad to make out turn-key biodiesel projects.
ECONOMIC COMPOSITION
SPECIALIZATION
COLABORATION
linking the stakeholders The main objective of the Hub is to bring capabilities of the various stakeholders involved in the bio-diesel production chain, both in Brazil and abroad providing resources and diffusing knowledge to the linked firms. The benefits provided through such linkages are of great significance because of the complimentary capabilities among the stakeholders. Linkages with foreign organizations can be a great driver of dynamism and competitiveness to develop effectively and rapidly the Brazilian bio-diesel program. The foreign firms benefit from linkages are reduced costs, local market and product intelligence and enhanced assets (UNCTAD 2001). MINASINVEST´s interventions, as a leading IPA (Investment promotion agency) are important to the extent that investors believe that an enterprising IPA can assist them in identifying and introducing reliable local firms and organizations with whom the investors can partner.
Partnership
BIOVALE ENERGIA (shareholders, partners, cooperatives) FEDERAL UNIVERSITY OF VIÇOSA – BIOAGRO/FUNARBE EPAMIG – STATE AGRONOMY RESEARCH INSTITUTE CETEC[SECTES – STATE SCIENCE AND TECHNOLOGY SECRETARIAT MUNICIPALITY OF ITABIRA INDESI – SOCIAL AND ECONOMIC INSTITUTE OF ITABIRA MINASINVEST – DEVELOPMENT ALLIANCE
goals
research
agriculture
industry
logistics
Documentation, preservation and characterization of J. curcas and mycorrhizal fungi germplasm Development of micro-propagated plants inoculated of ROC (Root Organ Culture) of arbuscular mycorrhizal (AM) fungi and their in vitro mass inoculum production Selection of jatropha genotypes with high oil yielding, envisaging the biodiesel production Toxicity elimination of the waste for animal feed
goals
research
agriculture
industry
logistics
9 Plantation of about 40.000 hec of jatropha in the region of Itabira
and surroundings, Minas Gerais, Brazil, out of which 12.000 hec with family agriculture holders 9The extensive crops will be started as soon as the research and development project is concluded 9 Partnership[joint arrangements with local feed-stock producers
goals
research
agriculture
industry
logistics
Construction of an oil extrusion and biodiesel plant with modern trans-
esterification technologies within the area of the technical school of Ipocamo, Itabira (50 hec) with following capacity]production: 9
Production of about 70.000 ts yearly of biodiesel
Production of about 120.000 yearly of cake for animal feed, after the toxicity elimination process is finalized.
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Usage of recycled oil collected by ITAURB, the Itabira selected waste collection company, a national reference.
goals
research
agriculture
industry
logistics
storage tanks and transhipment stations in Itabira
Logistic system of CVRD (largest logistic company in Brazil) for the domestic and international market up to the port; sea transportation (chartering)
The project will meet important sustainability program of CVRD:
“Green railway” program, utilizing B20 in their transportation requirements.
The consumption of diesel in CVRD´s railways in 2006 was 511 million liters
Projected consumption of biodiesel in their railways: 102 million liters p.a.
Jatropha curcas: the feedstock Perennial crops of Jatropha Curcas will be used to protect lands that are vulnerable to erosion and to restore lands degraded by grazing.
The yields of currently used biofuel feedstock vary widely. Jatropha seeds have proven advantageous in several spheres.
Jatropha curcas: the feedstock Jatropha is identified under the physical-chemical platform of biomass energy conversion route. It is a drought-resistant perennial, living up to 50 years and growing on marginal soils (HENNING, 1996). The remote rural communities of the Brazilian semi-arid in drought regions will be able to address their energy needs using the Jatropha resource. The Jatropha Curcas was especially selected because the plant is not an invasive species (GÜBITZ ET AL., 1999) and permits the growth of other plants in its vicinity, so it does not negatively affect the ecosystem. The results of the researches developed by EPAMIG, the State Agriculture R&D entity, in the 80´and the preliminary current ( 2004/2006) results attest the potentiality of the jatropha curcas cultivation in the semi-arid region
Jatropha curcas: the feedstock Jatropha Curcas L. has been widely accepted as a favorite agricultural solution for all subtropical and tropical locations for sound logical reasons: 9 It is not competing with food grade oils. 9 It’s toxicity is sensed by animals and therefore not foraged on. 9 It is high yielding (1000 liter per hectare). 9 It has a very high oil content of approximately 42%. 9 The oil seed is collected by hand, after dropping to the ground. 9 It requires only moderate rainfall (approx. 600mm only) and can withstand long periods of drought, but will thrive under higher rainfall. 9 It is a permanent, uncomplicated crop that, once established, can last for many decades. It therefore eliminates normal annual seedbed preparations and planting. 9 Due to its low demand on soil fertility, it is ideal to replant marginal lands to prevent desertification.
9 Given the drought-prone difficulties and lack of rural employment opportunities, growing a crop for renewable energy provides the answer for long term prosperity.
Brazil: a global benchmark in RET Brazil has ideal conditions for becoming a major world producer of biodiesel. It has a vast amount of arable land, part of which is not suitable for food crops but has the right soil and climate for growing a range of oilseeds. Biodiesel will make Brazil a global benchmark in the use of renewable fuels.It first won this position in the 1970s with the introduction of ethanol made from sugarcane to power automotive vehicles. The National Alcohol Program, Proálcool, was the largest fossil fuel substitution program in the world automotive market. It is still considered a global example of excellence, and Brazil remains the largest producer and consumer of fuel alcohol in the world. The experience Brazil has accumulated through the Proálcool serves as a strong foundation for implementing the biodiesel program and maximizing the nation’s competitiveness in a relatively short period.
Brazilian domestic market projection
¾ Law 11 097/2005: it sets forth a mandatory use of biodiesel mixture to diesel, which reflects in the following prospects
2020 2020 20% 12,4 12,4 billions billions liters/year liters/year
Source: MME
Brazil’s export potential With the launch of commercial production, Brazil becomes a potential exporter of biodiesel. The EU aims to ensure a minimum percentage of biodiesel in their fuel consumption, but it has limited land available for growing rapeseed, their main feedstock , and industrial capacity is insufficient to meet the stipulated demand. Despite these constraints, the proportion of renewable fuels should reach 5.75% by 2010 according to EU Directive 30, ratified by the European Parliament in May 2003. Given the limitations for production growth in Europe, Brazilian biodiesel enjoys an unprecedented opportunity to have a large market share in the European Continent.
Brazilian energy matrix
MINAS GERAIS STATE: The ideal place for investments in Brazil 9 9 9 9 9 9 9 9 9 9 9
Strategically located in the Southeast region of Brazil: concentrating 78% of Brazilian consuming market . 18 million people. Territory greater than many European countries. Plenty and cheap land for plantation Third largest South American economy. Excellent infra-structure Abundant energy and modern communication. Modern law on Public-private partnerships, respecting obligations with investors and partners. Expedient and practical action from Public Administration Strong competitiveness for new enterprises Highly qualified labor
MINAS GERAIS State stands at a vibrant moment in its development, introducing entrepreneurial changes, innovation, paradigm shifts, and openness for new alternatives and investments.
Possible partners Countries
:
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Bearing high agricultural production costs
Companies
:
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Having to meet social and environment responsibilities
⊲ Bearing internal/external obligations of emission reduction (Kyoto Protocol and other compromises)
⊲ Willing to attract SRI and valuing their stock prices
⊲ Bearing scarcity of cultivation lands
⊲ Bearing intensive need of fuel sources
⊲ Willing strategic alternatives for diesel supply
⊲ Bearing environment liabilities
⊲ Investors in prospective high return SRI
BIOFUELS: FUTURE´S MOST PROSPECTIVE INVESTMENT
Biodiesel - a Mutual Profitable Partnership ¾As oil prices and environmental concerns have risen in the past few years, investment in new biofuel facilities has mushroomed in Brazil. ¾The Brazilian National Program for use and production was incorporated in the Brazilian energy matrix by Law nr 11.097/2005 . ¾ Most vegetable oil crushing trans-national corporations have already started investing in biodiesel projects in Brazil ¾The crop area required to produce the blend of initial mandatory 3% of biodiesel will be 1.5 million hectares, equivalent to only 1% of the total acreage under crops or available for agriculture throughout Brazil (150 million hectares).
BIOVALE ENERGY: YOUR PARTNER IN BRAZIL – FROM INCEPTION TO CONCEPTION
“gree iron” Project The missing link
www.biovale.teiaslive.net
[email protected]
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