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)
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.
“ Take joint actions and improve efforts to work together at all levels to improve access to reliable and affordable energy services for sustainable development sufficient to facilitate the achievement of the MDGs, including the Goal of halving the proportion of people in poverty by 2015, and as a means to generate other important services that mitigate poverty, bearing in mind that access to energy facilitates the eradication of poverty” ( Summit on Sustainable Development in the Johannesburg Plan of Implementation ) vision
In modern economies, large scale poverty imposes an enormous economic loss, wasting the talents and energies of hundreds of millions of people , diverted from socially productive activities that could create wealth for society to the struggle for mere survival.
our challange The partnerships should be at the global level, at the country level with national stakeholders and external partners acting together, the private sector and civil-society institutions collaborating to create conditions that emancipate poor groups. But the fundamental partnership, and ultimately the only one that counts, is with the poor themselves. They have the talents, the skills and the knowledge of their own environment.
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.
The linkage envisages upgrading domestic enterprises; facilitating the transfer of technology, knowledge and skills; improving business and management practices; and facilitating access to finance and markets.
Linking the various stakeholders
the price of crude oil tripled between early 2002 and mid-2005 while natural gas reaches a level six times greater than ten years earlier. Market scenario and prospects Source: GTZ/WorldWatch Institute
energy companies have not invested in building enough refinery capacity to meet the growing level of world demand. World oil production has gone up by 40% in the past 20 years while refinery capacity has only gone up 15%.
the oil reserves discovered between 1950 and 1980 are being run down.
companies have not been able to find enough new oil and gas fields to replace the exhausting ones.
Oil is being pumped out of the ground three times faster than it is being replaced by new oil finds.
The growing gap Source: GTZ/WorldWatch Institute
" There are not enough large-scale projects in the development pipeline right now to offset declining production in mature oil fields and to meet global demand growth beyond 2007 ". (Chris Skrebowski, the editor of the Petroleum Review ) The total amount of energy that the world gets from oil and gas will begin to decline after 2010. Will oil prices rise further? Source: GTZ/WorldWatch Institute
Biofuel production has become substantially more efficient over the last 25 years as Brazil and the United States have scaled up their industries.
Such incremental gains are likely to continue for years to come.
New Technologies, New Gains However, the greatest potential for biofuels lies in the development of new technologies that will significantly expand the range of biomass feedstock, increase conversion efficiencies, and lower production costs.
One of the main benefits of biofuels is their potential to increase farm incomes and strengthen rural economies. The World Bank reports that biofuel industries require about 100 times more workers per unit of energy produced than the fossil fuel industry.
In 2004, the Brazilian sugarcane sector was responsible for 1 million jobs (direct)/4 million (indirect) corresponding to the production of 350 million tonnes of cane (UNICA, 2003 and Goldemberg, 2003).
The dispersed nature of agriculture makes it unlikely that biofuel production will become as centralized as the oil industry.
In the focused region of the project (Jequitinhonha & Mucuri Valleys) the access to modern forms of energy is limited or absent. An orchastrated pool of competences involved in the biodiesel production chain can help provide income and clean, accessible energy that is vital for rural development and poverty alleviation.
In general, biofuels have a solidly positive GHG balance . Energy crops have the potential to reduce GHG emissions by more than 100 percent (relative to petroleum fuels) because such crops can also sequester carbon in the soil as they grow.
Large deforested areas could be recovered by crops producing vegetable oils in order to produce biofuels.
Even with subsidies , the economic savings with biofuels from avoided oil imports are considerable: between 1975 and 1987, ethanol saved Brazil $10.4 billion in foreign exchange while costing the government $9 billion in subsidies. This investment paid off even more in subsequent years: studies show that from 1976–2004, Brazil’s ethanol production substituted for oil imports worth $60.7 billion—or as much as $121.3 billion including the avoided interest that would have been paid on foreign.
As oil prices and environmental concerns have risen in the past few years, investment in new biofuel facilities has mushroomed in Brazil.
The Brazilian National Program for use and production was incorporated in the Brazilian energy matrix by Law nr 11.097/2005 .
Large trans-national corporations, as ADM, have already started investing in biodiesel projects in Brazil
The crop area required to produce the blend of initial mandatory 2% 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
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.
With the launch of commercial production, Brazil becomes a potential exporter of biodiesel.
The EU aims to ensure that 2% of all the fuel consumed in the region is renewable by 2005, but it has limited acreage available for growing rapeseed, the main feedstock produced in Europe, and industrial capacity is insufficient to meet the stipulated demand.
Despite these constraints, the proportion of renewable fuels is set to 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 build market share in the continent Europe.
Features of envisaged agricultural area: Total semi-arid area: 1.219.021,50 Km2, equivalent to about 1/5 of Brazil – comprising ten States Maranhão, Piauí, Ceará, Rio Grande do Norte, Paraíba, Pernambuco, Alagoas, Sergipe e Bahia and Minas Gerais. Population: 1/3 of Brazil (55 million)
⊲ Bearing high agricultural production costs ⊲ Bearing internal/external obligations of emission reduction (Kyoto Protocol and other compromises) ⊲ Bearing scarcity of cultivation lands ⊲ Willing strategic alternatives for diesel supply Possible partners Countries : ⊲ Having to meet social and environment responsibilities ⊲ Bearing environment liabilities ⊲ Willing to attract SRI and valuing their stock prices ⊲ Bearing intensive need of fuel sources ⊲ Investors in prospective high return SRI Companies : BIOFUELS: FUTURE´S MOST PROSPECTIVE INVESTMENT
Prospects of biodiesel cooperation/partnership
Possible areas of interest:
Utilization of Partners technology for biodiesel plants in
building, logistics, utilization of glycerin and other by-
products, specification, engine tests, etc.
Sale of carbon credits (MDL) obtained through the
utilization of biodiesel in Brazil.
Export of vegetal oil and biodiesel to Partner´s country.
Exploitation of the potential domestic market
MINAS GERAIS STATE: The ideal place for investments in Brazil
Strategically located in the Southeast region of Brazil: concentrating 78% of Brazilian consuming market .
18 million people.
Territory greater than many European countries.
Third largest South American economy.
Abundant energy and modern communication.
Modern law on 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.
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.
Jatropha curcas: the feedstock 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
The development model is based on the working relationship between the community benefiting from the BIO-VALE project, a local technical NGO, an enterprising development agency , a foreign development agency, Government stakeholders and a corporation.
Each entity has its respective and important roles that complement, harmonize and support one another leading to the ultimate success and sustainability of the project.
“ T he private sector can play an important role towards furthering development, for development cannot occur without conditions that are amenable to the conduct of business.” (United Nations)
The local community possesses direct responsibility towards the day-today running of the biofuel project . Particular emphasis is given on the socio-economic empowerment of women, thus women groups will be specially utilized to manage the project.
The role of the community should therefore be:
● Provision of land for Jatropha plantation and site for the establishment of the oil extraction unit.
● Responsibility for the day-to-day management of plantation, including: cultivation and harvesting.
● Commitment of human resources for project development such as unskilled labor (to handle farmlands), access to skilled labor.
In order to help the community in their quest towards sustainable development, it is very important that they should be the main recipient of all benefits accrued from the project.
GENERAL CORPORATE ACTIVITIES BIOVALE ENERGY & PARTNERS
turn-key/Global solution in BioDiesel projects
Research & Development
Institutional and Government support
Project development, Project Financing an Funding
International product commercialization Logistics (sales, distribution, export process, shipping)
GENERAL CONSULTING ACTIVITIES
Implementation goals Internal capabilities External capabilities Professional POOL Roles of stakeholders strategies Action plan Resources management monitoring professional management BioVale Energy: your partner in Brazil.