2. SUSTAINABILITY IN PRACTICE
A company will only contribute to sustainable development if it is
ENVIRONMENTALLY
FRIENDLY
RESPECT TO THE ENVIRONMENT AND SOCIAL RESPONSABILITY
SHOULD BE AN ASSET AND NOT A LIABILITY
SOCIALLY ECONOMICALLY
RESPONSIBLE EFFICIENT
2
3. BIODIESEL AND THE ENVIRONMENT
is renewable and a perfect sustainable in the
substitute for mineral fuels long term
is green when made from plants absorb carbon
perennial oil-bearing plants dioxide while growing
carbon
BIODIESEL reduces greenhouse gas
emissions of sulphur
particulates
less risk to the
is biodegradable
environment
is more ecofriendly when the
biomass is used in the replaces heating fuels
production process
3
4. BIOFUELS AND THE ENVIRONMENT
The sustainability of different biofuels can only be evaluated by comparing
their energy balances, that is, the relation between the renewable energy
generated and the fossil materials used in the production process
ENERGY BALANCE
8.3
8
6
3.2
4 3.0
1.3 1.9 1.9
2
0
Corn Beet Sugar Soybean Rapeseed Sunflower
US EU Cane US EU EU
Brazil
Ethanol Biodiesel
4
5. BRASIL ECODIESEL AND THE
ENVIRONMENT
Brasil Ecodiesel hired EcoSecurities* to determine the energy balance of
biodiesel made from castor oil in our plant in Iraquara, Bahia
Major assumptions
* Plantation by family farmers with manual sowing and harvesting
* Average size of properties: 6 ha (14.8 acres)
* Average production: 600 kg/ha per year (243 kg/acre )
* By-products (castor seed cake and glycerin) used to generate heat during the
production process
ENERGY BALANCE = 10.5
BRASIL ECODIESEL CAN PRODUCE THE “GREENEST”
BIOFUEL IN THE WORLD
*EcoSecurities is a leading company in the field of carbon credits, with headquarters in London. The
figure for the energy balance is preliminary, pending final auditing by an independent expert. 5
6. BRASIL ECODIESEL AND THE
ENVIRONMENT
Additional advantages
* castor planted in semi-arid regions of poor soil and irregular rainfall, land
improper for intensive agriculture, no forest cover
* abundant availability of unemployed or underemployed work force
* castor oil and cake being non edible by humans and animals, no competition
between food and fuel
Future perspectives
* if and when methanol is replaced by ethanol in the transesterification process,
the energy balance of biodiesel made from castor oil should be above
40:1
* an even higher ratio will result from the use of jatropha (pinhão manso)
because it is a perennial plant and shows a higher oil productivity per hectare
than castor plants
6
7. BRASIL ECODIESEL AND ECONOMIC
EFFICIENCY
Vegetable oils diversification
Sunflower
Soy oil
oil
Oil industries Family farmers
and intensive
agriculture
Jatropha Curcas Castor oil
oil
Diversified sourcing of vegetable oils
Family farmers • mitigates risks
and own land • benefits from Brazilian agricultural potential Family farmers
7
8. BRASIL ECODIESEL AND ECONOMIC
EFFICIENCY
Vegetable oils diversification
Focus on non edible and high-yield oil crops
* better relation between oil and meal/cake
* no competition between food and fuel
* availability of land
* labor intensive – positive social and human development impact
SOYA
4,0
SUNFLOWER CASTOR JATROPHA
CURCAS
1,5
1,0 1,0 1,0 1,0 1,0 1,0
Oil Meal Oil Meal Oil Cake Oil Cake
Marginal Use Production Expansion
8
9. BRASIL ECODIESEL AND ECONOMIC
EFFICIENCY
Diversification of feedstocks and sourcing
Brasil Ecodiesel aims to reduce soy oil usage
5%
12% Feedstock Sourcing - 2010
30%
18%
45%
Own
Oil Market
Lands
70% 20%
20%
Intensive
20%
Agriculture Family Farmers
25% 35%
2007 2010
OIL MARKET
SUNFLOWER
CASTOR
JATROPHA
9
10. BRASIL ECODIESEL AND ECONOMIC
EFFICIENCY
Geographical diversification
Major biodiesel producer in
Brazil and the only one with
a nationwide presence
Biodiesel plants: 7
* 4 in operation
* 2 pre-operational
* 1 in planning
Oil Extraction units: 6
* 2 in operation
* 1 pre-operational
* 3 under construction
Farms: 6 (32,000 hectares / 79,000 acres)
Storage facilities for vegetable oils and grains: 32
10
11. BRASIL ECODIESEL AND ECONOMIC
EFFICIENCY
Integrated Operating Process
Oilseeds Vegetable
Oil
Oil Transesterification Biodiesel
Agriculture Extraction
Oil Market
Castor and Sunflower Glycerin
Jatropha Cake Meal
organic fertilizer animal final user
heat generation feedstock heat generation
Integrated production structure guarantees vegetable oil supply and
mitigates commodity prices/currency fluctuations
11
12. THE BRAZILIAN BIODIESEL PROGRAM
AND SOCIAL INCLUSION
* In a pioneering move, the Brazilian Biodiesel Program offered a tax
incentive to biodiesel producers using feedstocks planted by family
farmers
* The maximum rebate is given to biodiesel derived from castor plant
(mamona) and palm (dendê) produced by family farmers in the North,
Northeast or the semi-arid region
* A “Social Fuel Stamp" identifies the biodiesel producers which employ
family farmers and are thus eligible to enjoy the tax incentive
* Brasil Ecodiesel was the first company to receive the “Social Fuel
Stamp"
12
13. BRASIL ECODIESEL AND SOCIAL
INCLUSION
Brasil Ecodiesel performs its social inclusion function in two ways:
Establishment of Network of
settlements in its contracts with
own lands family farmers
SOCIAL
INCLUSION
Brasil Ecodiesel cooperates closely with rural unions at the
federal and state levels, cooperatives, NGOs
13
14. BRASIL ECODIESEL AND SOCIAL
INCLUSION
Focus on new crops intensive in labor
* Assured supply – loyalty programs with feedstock suppliers
* Institutional solidity – relationship with rural area organizations
Integration Network of Agricultural
Communal Production Nucleus
Partners
• Santa Clara Nucleus, established • ~ 100,000 by the end of 2007
in 2003
76 Regional Offices
covering
1,200 Municipalities
76
14
15. BRASIL ECODIESEL AND SOCIAL
INCLUSION
SANTA CLARA COMMUNAL AGRICULTURAL NUCLEUS
15
16. BRASIL ECODIESEL AND SOCIAL
INCLUSION
SANTA CLARA COMMUNAL AGRICULTURAL NUCLEUS
16
17. BRASIL ECODIESEL AND SOCIAL
INCLUSION
SANTA CLARA COMMUNAL AGRICULTURAL NUCLEUS
17
18. BRASIL ECODIESEL AND SOCIAL
INCLUSION
SANTA CLARA COMMUNAL AGRICULTURAL NUCLEUS
18
19. BRASIL ECODIESEL AND SOCIAL
INCLUSION
SANTA CLARA COMMUNAL AGRICULTURAL NUCLEUS
19
20. BRASIL ECODIESEL AND SOCIAL
INCLUSION
SANTA CLARA COMMUNAL AGRICULTURAL NUCLEUS
20
21. BRASIL ECODIESEL AND SOCIAL
INCLUSION
SANTA CLARA COMMUNAL AGRICULTURAL NUCLEUS
21
22. BRASIL ECODIESEL AND SOCIAL
INCLUSION
SANTA CLARA COMMUNAL AGRICULTURAL NUCLEUS
22
23. BRASIL ECODIESEL AND SOCIAL
INCLUSION
SANTA CLARA COMMUNAL AGRICULTURAL NUCLEUS
23
24. BRASIL ECODIESEL AND SOCIAL
INCLUSION
INTEGRATION NETWORK OF AGRICULTURAL PARTNERS
In its contracts with agricultural partners, Brasil Ecodiesel:
* commits itself to buy all the seeds produced with guaranteed prices
* for family farmers in the semi-arid, provides castor seeds, bean
seeds, tools and technical assistance through regular visits by
agents (who also provide information on health, hygiene, education)
Brasil Ecodiesel has 57,000 families under contract, reaching
over 100,000 by the end of 2007
24
25. SUSTAINABILITY IN PRACTICE
ENVIRONMENTALLY
FRIENDLY
BRASIL ECODIESEL
FULFILLS THESE CONDITIONS IN AN UNPARALLELED WAY
SOCIALLY ECONOMICALLY
RESPONSIBLE EFFICIENT
25
26. SUSTAINABLE DEVELOPMENT FORUM 2007
JORIO DAUSTER – CHAIRMAN OF THE BOARD
NEW YORK, APRIL 30, 2007
www.brasilecodiesel.com.br
