Biodiesel … by a green conscience …. Continuing with our commitment …. April 2007
Actual Business Agroindustria Madero S.A. it is an argentinean company located in the Province of Buenos Aires, dedicated to the processing/crushing of soya/sunflower seed, to obtain crude and refined oil and food for animal feed and human consumption. The firm is a young Company (2003) that has had a great development from his beginnings, obtaining an excellent level of integration and commitment with the quality of its products. The directors, engineers and specialized personnel for over 30 years have been developed into the oilseeds industry and meals, being among the best ones of the country in those industries, having a high recongnition and respect in the market. Agroindustria Madero S.A. has a current personnel of 195 workers.
Accionistas y Management (cont.) Management CEO: Jorge Vezzuci Dirección Técnica: Ing. Pablo Pagani Ing. Héctor Mathiasen Dirección Administrativa y Comercial Abog. Magdalena Ruete Aguirre Ricardo Olaviaga
The pillars of our Company
Add value to agricultural by-products
Own development of industrial engineering
The Firm main local clients are:
Meal (pellets) : Granja Tres Arroyos, Cargill, Royal Canin, Sedeamérica, Balanceados Brandsen, Molineros Suarez Ccía., Granel Sur, Ovoprot, Nuestra Huella S.A., Criave S.A., Cabaña Avícola Jorjý S.A., Frigorífico de Ave Soychú S.A., Cremer Gruppe etc.
Crude Oil : Nidera SA, Dánica SA, Flora Dánica SA, Germaiz S.A., Molinos Río de La Plata S.A., etc.
Legislation and Goverment Authorities Ministry of Health, Secretariat of Environmental Policy. Deparment of Energy´s Ministry of the Production Department of Agriculture, Cattle, Fishing and Nutrition feeding INTI (National Institute of Insdustrial Technology) SENASA Código Alimentario del Mercosur/ Mercosur Nutritional Legislation Registro Nacional de Establecimiento (RNE) / National Registry of Establishment Registro Nacional de Producto Alimenticio (RNPA) / National Nutritional Product Registry Our Brands in th elocal market Agroindustria Madero S.A. has two brands into the local market: EL CORTIJO y SINGULAR. The packaging of our oils is also made under the registered tradename of our clients in its different packages (1lt, 2lt, 5lt, 10lt, 15lt, 20lt.) International Trade Our direct exports has destinies like Chile, Uruguay, South Africa, Australia and Germany .
BioMadero S.A. is the natural producer and exporter for the vegetable soya oil Biodiesel, according to its actual business plan developed: it keeps the same supliers, integrate and additional producive stage and diversifies its output with a highly profitable product, having also by-products with excellent markets
Our vegetable oil, raw material of Biodiesel, gives it an add value, continuing with our policy in the production chain
BioMadero S.A. has developed it own technology for the construction and production of Biodiesel.
Biodiesel Plant Equipment
Raw material and competitive advantages of Argentina
Overview of local and internacional market
Especifications of the European market
Fuel elaborated from vegetal or greasy oils animals , apt like partial or total sustituyente of the diesel oil in diesel engines, without are necessary conversions, adjustments or special regulations of the motor.
Technically, it consists of monoalchemic fatty acid esters of long chain derived from natural lipids.
The conversion rule is of 1,03 tn of crude vegetal oil by each tn of biodiesel, being left glicerol and fatty acids like by-products.
The Agency of Environmental Protection (EPA/USA) it has registered it for use like pure fuel (100% of biodiesel, or B100), as mix-it bases (with 20% of biodiesel and the rest of diesel oil, B20), or like fuel additive derived from petroleum in proportions from the 1 to 5%.
Minimum differences in torque, power and consumption of the motors
Greater point of ignition (it reduces danger of explosions by gas emanation during the storage)
Greater lubricity (it favors the operation of the circuit of feeding and the bulk injection pump)
Greater modifications in the conventional diesel engines for their use are not required, obtaining themselves similar yields
Its substitute use does not demand modifications of the distribution infrastructure and the liquid fuel sale already installed
Safer transport and storage thanks to the high flash point of biodiesel
High biodegradation, comparable to the dextrorse´s
not containing sulfur (it allows to use catalysts for improvement on the combustion and decrease exhaust gases)
It liberate the agricultural countries from the fossil supplying with fuel, from those countries that are producing petroleum (in macroeconomics terms)
Advantages of the Biodiesel versus Diesel oil Biodiesel characterization (cont.)
Environmental impact :
The pure Biodiesel (B 100) comparing with the diesel oil N° 2, reduces the emissions of all the polluting agents, including particle matters, except the Nox
In the general balance sheet, the potential smog is reduced
The poly-aromatics hydrocarbon levels, are reduced (cancerigenic) in a 75%
The benzo (a) antraceno is reduced in a 50%.
Advantages of the Biodiesel versus Diesel oil (cont.) Caracterización del Biodiesel (cont.)
For the first time the Des-balance in the petroleum market comes from the side of the demand. We are near to the peak of petroleum
The tendency in the main markets consolidates to protect the atmosphere, from the use of the Treaty of Kyoto
The development of alternative sources of energy is a strategic isue.
Why Argentina could become the green Middle East... Caracterización del Biodiesel (cont.) New Energetic Paradigm
Because is the first World-wide sunflower/soya oil exporter
Exporting 2 million tons of biodiesel in 2010, is possible to generate USD 300 million added value
The profit is considered to be between 12 and 20%
Custom Tax: Oils= 24%
Biodiesel = 5%
Flow Chart Caracterización del Biodiesel (cont.)
The only industrial sector that can to provide raw material with the minimum technical requirements (stability, carbonaceous remainder of Conrad, etc.) in the volumes demanded for use extended and continuous by a massive market like the fuels, is the oily industry
The term "oily sources" includes the annual harvests (seeds, as for example the sunflower) as the perennial plants whose seeds, fruits, nuts are valorized fundamentally by the oils that are extracted of them, They also could be sources of other raw materials (as the fibers of the cotton whose seeds could be crushed for vegetal oil
Raw Material and competitive advantages of the country
Uses on world-wide range
Only between 5 and 6% of oil production is used as seed and feed
Around 8% is used for human feeding in direct form
The remaining percentage is used for the oil manufacture
Oil price evolution . US$ per tn. Soya Oil Sunflower oil Raw Material and competitive advantages of the country (cont.) Source: SAGyP
Most Common Characteristics
Nowaday, at world-wide level ,it is the most important oil source, although it´s also widely consumed like grain and as by-product (soya milk, for ex.) due to its high protein content Soya Palm Sunflower Rape seed Produces clusters of fruits whose fleshy mesocarpio surrounds an almond with a rind extremely lasts. The palm oil is extracted from the pulp (the yield of a cluster oscillates between the 17 and 27%) whereas the almonds are also oily, with an oil content between the 4 and 10%. Their seeds are valorized fundamentally by their oil content, although a small percentage of the total production is destined to the direct consumption like human and component food in the rations for feeding of birds. The commercial value resides basically in its oil content, (also call canola oil). Cotton Cultivated from its fiber as from its seeds, that contain between 55 and a 65% of oil. Raw Material and competitive advantages of the country (cont.)
Uses on world-wide range
Comparative advantage of Argentina in the production of oily cultivation
Existence of great apt surfaces to be potentially exploded
Argentina is one of the world-wide leaders in vegetal oil export.
Commitment of the National Government to support Biodiesel project.
Raw Material and competitive advantages of the country (cont.)
In the last decade, the agricultural industry, participated in the argentinean Internal Gross Product, 12% yearly
This one is formed in a 43% by primary products and fishes as well, whereas the rest is manufactures of farming origin.
Its average contribution oscillated around 33,000 million dollars, according to a total of 265,000 yearly million dollars by all concept .
Competitive advantages of Argentina (cont.) Raw Material and competitive advantages of the country (cont.)
The exports of the Sector in the last triennium totalized 51% of the Argentine total commerce.
With 12,700 million dollars, of which 5,300 million constituted the primary products and 7,400 million the manufactures of farming origin, the total exported, has grow in the last fifteen years, in a rate superior to 4,7% per year.
The agricultural area in the Argentinean economy The agricultural area in the global economy
Oily Milling in Argentina , in mill. Tons. 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
1º soyoil world-wide exporter
3º world-wide soybean
In the last 10 years, the oily milling was duplicated
In last six decades, the cultivated surface of grains and oily seeds, has expanded in 10 million hectares.
Raw Material and competitive advantages of the country (cont.) Source: CIARA, Cámara de la Industria Aceitera
Biodiesel Market in Argentina Total Fuels Nafta, GNC, etc Gasoil 2004 Gasoil 2010 Biodiesel 5% Mercado de combustible actual y estimado, en miles de mill. de litros 23.7 11.4 12.3 14.0 0.7 Overview local and internacional market (cont.) Source: SAGyP
YPF : Plant of 100 mil Tn Vicentín : Plant of 240 mil Tn Oil Fox/ Neckermann : Plant of 240 mil Tn AGD : Plant of 100-200 mil Tn Overview local and internacional market (cont.) Biodiesel Market in Argentina Announcement of investment Us Others
Plant of 180 mil Tn
Plant of 540 mil Tn (built in dic-2006)
Start Up in 2008 Start Up June 2007 Start Up en Junio 2008 Source: Newspaper Articules
World Production of Biodiesel En billones de litros Overview local and internacional market(cont.) Source: European Biodiesel Board 3.8 3.0 Total 0.1 0.1 Others 0.8 0.4 USA 0.2 0.0 UK 0.2 0.4 Italy 0.5 0.4 France 2.0 1.7 Germany 2005/6 2004/5
Overview of european market Actual and estimated demand
The biodiesel market share in 2005 was 1,5%
The Instructive Directiva 2003/30 it establishes that for the year 2010, bio-fuels must reach a market share of 5,75%, requiring between 12 to 18 millons Tn of biodiesel
During the period of 2002-2005, the biodiesel production has increased 35% yearly
In 2005, 20 european countries produced biodiesel in industrial scale, vs. 11 in 2004
In 2006, the estimated installed capacity was aprox. 6 millones de Tn, vs 4,2 in 2005
Germany produces more than half of european biodiesel, in more than 10 plants. It´s also the main consumer: in 2005, the Biodiesel was sold in more than 1.900 gas stations, and it reached a market share of 2%. Overview local and internacional market (cont.) Sources: European Biodiesel Board
Overview local and internacional market (cont.) European market – Legislation about biodiesel
Composition of 100 Tns of Biodiesel Equipment (cont.) 103 Tns of Refined Soy Oil 10 Tns of Methanol 0,05 Tns of Potassium Hydroxide + + Raw Material 100 Tns of Biodiesel + 10 Tns of Glicerol
Specifications EN14214. Result According to regulation