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INVESTMENT OPPORTUNITIES




Biofuels in Argentina
Natural resources + Knowledge to meet
global market needs
Highlights
 TAKING ON A GLOBAL OPPORTUNITY
  Strong economic, environmental and geopolitical drivers are shaping the
  biofuels industry into a fast-growing global market. Growth over recent
  years and projections of a continued uptrend in growth provide significant
  opportunities for companies operating in countries like Argentina with the
  greatest potential to be global biofuel suppliers.

 A PREDICTABLE DEMAND FOR COMPETITIVE EXPORTERS
  The targets set for biofuel use in major industrialized countries create a
  predictable demand for biodiesel and ethanol, which will spur global biofuel
  trade. Based on the current production and projected export growth, Argentina
  is positioned to become a key biofuel supplier in world markets.

 BOOMING DOMESTIC PRODUCTION CAPACITY
  Due to significant investments in this highly dynamic sector, Argentina’s
  annual production capacity is set to reach .1 billion liters of biodiesel and
  approximately 1 billion liters of ethanol by 010.

 ARGENTINA’S OUSTANDING MIX OF RESOURCES
  Argentina’s competitive advantage is built on a foundation of abundant world-
  class agricultural commodities, qualified human resources and existing industrial
  capabilities. As world leaders of soybean oil exports, Argentine companies
  have relied on soybean oil as the main feedstock for biodiesel production. The
  country’s sugar industry has the growth potential to serve as a platform for
  bioethanol production.

 COMMITTED PUBLIC AND PRIVATE SECTOR
  Argentina has already passed a law mandating biofuel mixes for 010 and has
  established a number of incentives for the biofuels industry. However, keeping
  pace with new developments in the biofuel industry will require a joint RD
  effort between the public and private sectors in the context of a regulatory
  framework that presents players with a set of comprehensive incentives and
  gives the industry the necessary predictability.
I. Why Invest in Biofuels in Argentina?

                                                                   • ARGENTINE BIODIESEL. Today Argentina is the fourth
                                                                    largest producer of biodiesel after the E.U., U.S. and
                                                                    Brazil, and its production capacity is expected to increase
                                                                    300% in the next three years. Most of Argentina’s
                                                                    biodiesel is currently exported to foreign markets.


                                                                   • ARGENTINE BIOETHANOL. Ethanol accounts for
                                                                    the largest share of global biofuels production. With
                                                                    significant investments in the works, Argentina’s fast
                                                                    growing ethanol industry is gearing up to reach almost 1
                                                                    billion liters of production capacity by 2010.


                                                                   • OUTSTANDING RESOURCES. A unique combination of
                                                                    factors—natural resources, human capital and industry
                                                                    infrastructure—are the pillars of Argentina’s current
                                                                    and projected performance. Its vast extensions of
                                                                    suitable land for agricultural production generate a
                                                                    comparative advantage based upon the production of
    • MARKET DRIVERS. The global biofuels markets of                diverse crops used as feedstock (mainly soybean, corn
     ethanol and biodiesel are thriving. An insufficient            and sugarcane) and the potential to develop non-food
     supply of fossil fuels, environmental concerns and world       alternative feedstocks. Well-established vegetable oil and
     governments’ pursuit to ensure energy security highlight       sugar industries offer the necessary support to expand
     the importance of biofuels as an alternative energy            Argentina’s biofuels industry, transforming the country
     source. Production has tripled over the past 10 years          in a leading world supplier.
     and 12% annual market growth is expected for the next
     decade. Argentina has become one of the leading nations       • FUTURE DEVELOPMENTS. The drive towards increased
     in biofuels production by successfully leveraging its large    efficiency, the development of second generation
     endowment of high-quality natural and human resources          technologies and more efficient non-food feedstock will
     and existing industrial capabilities.                          accelerate the industry’s dynamics and open up business
                                                                    opportunities to developers, farmers, feedstock providers
    • FORESEEABLE PROFITS IN GLOBAL BIOFUELS TRADE. A               and investors. Among global leaders in the application of
     large number of countries have set targets for biofuel use     technology to agriculture, Argentina has great potential
     that will create a demand that exceeds their production        to benefit from current trends in the biofuels industry.
     capabilities, thus spurring global biofuels trade. While
     production is currently concentrated in the United            • MAIN CHALLENGES. Argentina will have to encourage
     States, Brazil and the European Union, the increasing          a concerted effort to increase public and private RD
     demand for biofuels presents attractive opportunities          in order to stay at the forefront of global industry
     for countries like Argentina with the key attributes           developments. In order to encourage a forward looking
     for biofuel production to consolidate a position in the        mindset within the industry, the government’s challenge
     market. Considering the wealth of industry-specific            is to develop the appropriate regulatory framework
     resources, the most significant increases in biofuel           capable of addressing current needs while adapting to
     production over the next decade are expected in the E.U.,      future circumstances.
     Brazil, Argentina and Canada. Argentina’s position in
     Mercosur and its strategic alliance with Brazil opens an
     attractive regional biofuels’ market.
II. Sector Structure and Performance

    Almost 50 biofuels companies are currently operating in        made for biofuel investments to the tune of US$800
    Argentina. Leveraging its soybean oil production capacity,     million. Among these are the joint investment of Enarsa,
    Argentina is mainly a biodiesel producer. Although             Green Fuel, Noble Group (China) and Raiser to invest
    Argentina has developed a significant ethanol production       US$190 million to build a soy mill and biofuel production
    capacity, the production for fuel use is only beginning to     facility.
    emerge. Both biofuels segments exhibit a dynamic behavior
    in production and exports, and major investments have been     Economies of scale. Currently, small plants are mainly
    geared towards supplying global markets.                       geared towards self-consumption. However, the average
                                                                   production capacity of the new plants (140,000 m 3) will
    BIODIESEL INDUSTRY STRUCTURE                                   be almost six times larger than that of the existing ones
                                                                   (24,000 m 3) marking a domestic trend towards projects
    A strong and integrated domestic industry.                     with clear commercial purpose and a competitive scale.
    The Argentine biodiesel industry is mainly based on            While today there are only two plants with an annual
    the use of soybean as feedstock. There are 31 companies        capacity of over 100,000 m 3 of biodiesel, by 2010 there
    currently producing biodiesel with an estimated annual         will be over 13.
    production capacity of over 745 million liters. Production
    is geographically concentrated in the provinces of Buenos      ETHANOL INDUSTRY STRUCTURE
    Aires and Santa Fe. Almost all major players in Argentina’s
    vegetable oil industry own or are constructing biodiesel       Emerging production. Ethanol production in Argentina
    plants. The two largest plants belong to large vegetable oil   is concentrated in sugar mills in the northwestern part
    crushers and account for two thirds of current domestic        of the country. Overall 17 firms with 23 mills are actively
    production capacity (Renova with 260,000 annual m and     3    producing ethanol. However, the ethanol produced by
    Ecofuel with 230,000 annual m 3). Total investment in          these firms is not exclusively destined for fuel usage. In
    existing plants has been estimated at US$110 million.          2006, the firm Los Balcanes inaugurated the country’s
                                                                   largest ethanol distillery in the province of Tucumán (La
    Expanding production capacity. Eight more biodiesel            Florida) with a productive capacity of 100,000 m 3 of sugar
    plants are currently under construction with a projected       cane-based ethanol aimed to supply both the domestic and
    total annual capacity of 1,577,000 m 3 , and plans to build    export markets. Other relevant sugar mills are the ones
    nine more production facilities –adding 809,000 m – have
                                                          3        located in Ledesma (30,000 m 3) in the Province of Jujuy,
    been announced. In 2007 alone, announcements were              Concepción (27,000 m 3), La Providencia (13,000 m 3) and La
Trinidad (12,000 m 3) in the Province of Tucumán, and the                               Biodiesel production in 2008 is forecast to surpass 800
San Martín de Tabacal mill (17,000 m ) in the Province of       3                       million liters, four times greater than production output
Salta, among others.                                                                    estimates for 2007. Remarkably, production capacity is
                                                                                        estimated to increase 300%, reaching 3.1 billion liters
Alternative feedstocks. Although today local                                            by the end of 2010, when all investments–underway and
ethanol production is based on sugarcane as feedstock,                                  announced–should be completed. With an estimated
future production shows promising potential based                                       production cost of under US$0.50 per liter, local
on Argentina´s corn production capacity in addition                                     production is very competitive in the international market,
to sugarcane. There are several proposals for plants                                    compared to US$0.50 in the E.U. and US$0.61 in the U.S..
producing ethanol from corn or sorghum, however none
are currently under construction.                                                       Export performance. In 2007, biodiesel exports
                                                                                        –accounting for 75% of total sales- reached US$133 million.
                                                                                        Over 75% was exported to the U.S., and practically 24% to
BIODIESEL SECTOR PERFORMANCE                                                            the E.U. Three plants concentrate 90% of exports (Ecofuel,
                                                                                        Renova, and Vicentín). During the first quarter of 2008,
Export potential. Biodiesel production in Argentina                                     exports have already exceeded the level of the entire
is primarily geared towards exports –particularly that                                  previous year, with a value of over US$190 million (85%
of the largest plants-. Projections for biodiesel global                                exported to the U.S.).
production anticipate a 70% increase between 2008 and
2010 and it is expected that Argentina will rank among the
top five producing countries, accounting for 7.2% of total                              ETHANOL SECTOR PERFORMANCE
production. The five largest biodiesel producing countries
will concentrate 56% of global production.                                              Ethanol production. Although ethanol production for
Domestic potential. Argentina has a significant                                         fuel usage is taking its first steps in Argentina, the country
domestic demand for diesel, which accounts for the largest                              already has a well developed ethanol production capacity.
percentage of petroleum demand (66%). Additionally,                                     In 2007, 200 million liters of sugar cane-based ethanol
diesel consumption for the year 2015 is estimated to                                    were produced in Argentina and total ethanol production
grow 40% from 2005 levels. Since biodiesel easily                                       capacity is projected to rise to approximately one billion
replaces diesel, a growing domestic demand coupled                                      liters per year by 2010. Approximately 60% of production
with mandatory biofuel mixes is expected to play an                                     (US$57 million in 2007) is geared towards the domestic
increasingly important role as a production driver.                                     market, for use mainly in the beverage, agricultural
                                                                                        chemicals and pharmaceutical industries. The remaining
Production performance. Biodiesel production,                                           40% (US$38 million) is exported for purposes other than
exports and local consumption have steadily risen.                                      fuel usage. Production is led by Atanor, Los Balcanes, and
                                                                                        Ledesma. The average yield per hectare of sugar cane-
                                                                                        based ethanol is of 4,875 liters, above the yields offered by
Five Main Biodiesel Producers by 2010: Share in Total Production
                                                                                        corn-based ethanol (3,000 liters/ha.) or sorghum-based
     U.S.                                                                       14.3%
                                                                                        ethanol (2,000 liters/ha).

Germany                                                                 12.0%
                                                                                        Projected investments. Recent investment
  France                                                              11.6%             announcements will add over 500,000 m 3 of additional
                                                                                        ethanol production capacity in the coming years. Some
   Brazil                                                           11.1%
                                                                                        of the major projects are those announced by Adecoagro
Argentina                                                7.2%
                                                                                        (175,000 m 3), Arcor (87,000 m 3), San José (87,000 m 3), and
                                                                                        Bioetanol Río Cuarto (48,000 m 3).
            Sources: World Ethanol and Biofuels Report
III. Foundation for Success



    An abundance of high quality natural resources, efficiency
    in agricultural production, advanced application of
    agricultural biotechnology and a developed vegetable oil                                                         CASE STUDY
    industry are the pillars supporting the substantial growth                                                       BIODIESEL DEL PLATA
    potential of Argentina’s biofuels production.
                                                                                                                     An innovative domestic firm developing
    NATURAL RESOURCES                                                                                                environmentally sustainable projects

    Naturally rich. Argentina has vast extensions of suitable                                                        Biodiesel del Plata is a Biofuels company operating in
    land for agricultural production, some 32 million hectares                                                       Argentina since 00. The company is known for its
    of arable land. This generates comparative advantages                                                            ability to innovate and for developing environmentally
    related to the production of diversified crops used as                                                           sustainable projects with no effluents and no
    feedstocks for biofuels (i.e. soybean, corn, sugarcane) and                                                      environmental impact.
    to the development of other non-food alternatives.
                                                                                                                     Over the past years, the company developed a
    Agricultural productivity. As a result of the                                                                    business model for Biodiesel Refineries that was
    combination of its natural wealth and human resources,                                                           new in the Argentine market and allowed for the
    Argentina has experienced an agricultural revolution over                                                        processing of ungummed crude oil, used oil and
    the last 10 years, increasing to a maximum the productivity                                                      animal fats. The firm established the first production
    levels of its main crops. This in turn has allowed the                                                           location in South America to achieve Biodiesel
    country to reach record levels of agricultural production                                                        production using the Rohm and Haas ion exchange
    year after year. Today, Argentina enjoys the world’s highest                                                     system and to incorporate in all its production centers
    productivity figures in the production of soybean, corn and                                                      refineries of crude glycerol into industrial glycerin
    their derivatives.                                                                                               with a purity level of over % in order to increase the
                                                                                                                     project’s economic sustainability. This resulted in the
                                                                                                                     completion of two projects in 00: Agroindustrias
                                                                                                                     Tejedor SA in San Lorenzo (produces ,000 tons
                                                                                                                     a month) and Ricard Set Energías Renovables SA
                                                  Grain and Oilseed Production
                                                        (Millions of Tons)                                           (produces 1,000 tons a month).

                       0
                                       Grains                     Oilseeds                                           The high skill level achieved by the firm’s employees
                       0                                                                                            in Argentina has resulted in the constant search
                                                                                                                     and development of new technologies for biodiesel
                       0
    Millions of tons




                                                                                                                     production. In this context, the company is developing
                       0
                                                                                                                     technologies (currently being patented) to convert
                       0                                                                                            industrial waste into biofuels. Its aim is to take
                                                                                                                     advantage of the resulting know-how to export this
                       10
                                                                                                                     model worldwide, and become the leader in the
                       0
                             000/01          001/0   00/0    00/0   00/0   00/0   00/0   00/0
                                                                                                                     biofuels industry in Argentina over 00-009.
                            Source: SAGPyA.
RELATED INDUSTRIES                                           RESEARCH AND DEVELOPMENT

Soybean oil industry. Argentina is one of the top            Research areas. Currently, several programs are
three soybean and soybean oil producers in the world.        focusing on developing new technologies which would
The country has 47 soybean oil producing plants with a       rely on alternative feedstocks. Public universities, official
combined daily crushing capacity of over 100,000 tons.       entities and the private sector are simultaneously working
These plants are mainly concentrated in the Rosario          on a number of different projects. Some of these programs
area (province of Santa Fe) in the heart of the soybean      are based on the use of jathropa, algae, and castor oil plant.
producing area in Argentina. The combination of high         Research is also being conducted on feedstock which
production and low domestic consumption makes                can be produced in areas not suited for agriculture and
Argentina the world’s leading soybean oil exporter, and      which do not compete with food productions. Even when
is expected to maintain this position in the foreseeable     a large proportion of biofuel production is derived from
future. Over 90% of soybean oil production is exported to    traditional crops, these alternatives can offer better yields.
major markets such as China and India.                       Castor oil can provide 1,290 liters of biodiesel per hectare
                                                             and rapeseed would produce 929 liters per hectare, in
Sugar industry. Mainly due to productivity                   comparison to the 906 and 502 liters per hectare for
improvements, the Argentine sugar industry has               sunflower and soybean, respectively (SAGPyA).
significantly expanded in the past years. Investments
during the last decades in the construction of new sugar
mills and in the technological upgrading of existing ones    REGIONAL COMPLEMENTARITIES
resulted in record-high production levels. While currently
geared mainly towards domestic demand, the sector’s          Mercosur. From a regional perspective, the development
effort to increase production has resulted in an improved    of biofuels positions Mercosur as a strategic region in the
export performance. During the 2002-2006 period              world, with a wide range of supply options. Argentina’s
production expanded by 47%, while exports increased by       supply complements that of Brazil, the leading producer
more than 160%. In 2006, sugar production reached a peak     of sugar cane-based bioethanol. This broad-based supply
of 2.4 million tons; exports accounted for approximately     across the region potentiates the complementary capacities
30% of this volume.                                          between countries and, above all, the common interests
                                                             surrounding this issue, as well as fosters favorable
                                                             conditions for a move in the direction of an aligned and
LOCAL SKILLS AND TALENT                                      coordinated development of biofuels on a Mercosur scale.


Industry expertise. Biofuels production in Argentina is
driven by a combination of natural resources advantages,     INDUSTRY NETWORKING
small investment requirements and the availability of
highly-qualified resources and professionals specialized     Public-private cooperation. Argentina´s biofuels
in engineering and biotechnology. This production            law states that the regulating authority will encourage
generates a technologically coherent and environmentally     cooperative agreements between the public and private
sustainable opportunity that has begun to emerge.            sectors to promote and encourage the development of
Argentina is capable of becoming a relevant player in        production technology and the use of biofuels. In late
biofuels production but also on the production and           2006, the Argentine government created the Forum of
design of biofuels plants and solutions. Some Argentine      Energy Feedstock to coordinate research and development
companies are already gaining presence in Latin America      projects together with the private sector.
and the U.S., offering knowledge and expertise in the
production of biofuels.


                                                                                                                              9
CASE STUDY
     ePlus: worldwide supplier for renewable energy solutions

     ePlus is a local company focused on biodiesel            professionals, the company was ready to produce a
     project rollout, engulfing all the possible production   major breakthrough: Argentina’s first soybean based
     steps from the oil extraction process to the refining    biodiesel production plant of industrial scale. In 00,
     of the final fuel, including all the complementary       in light of the growing market and the permanent
     services for a turn-key solution. The company’s          RD requirements, ePlus formed an alliance with
     turn-key models include crushing facilities (chemical    Grupo de Ingeniería Aplicada (GIA). GIA’s core group
     and mechanical), oil-based biodiesel production          undertook several projects in the U.S., Argentina
     plants (transesterification reaction phase) and fully    and other Latin American countries in the areas of
     integrated plants adaptable to a wide variety of         oleochemichals, soaps and detergents and glycerin,
     crops (soybean, sunflower, canola, safflower) and        becoming an industry leader working with high-tech
     animal fats.                                             proprietary designs. After several projects in the
                                                              local market, and export experience to neighboring
     The company started in May 00 as a project             countries, the company has recently exported a turn-
     supported by Don Mario Semillas, a renowned              key plant to the U.S. that consists of an integrated
     agribusiness leader in the local soybean market          soybean-based biodiesel plant with an annual
     since 190. After gathering a team of experienced        capacity to process ,000 tons of soybean oil.




10
IV. Policy Initiatives




REGULATORY FRAMEWORK

Incentives. Argentina’s government has identified early        – Early reimbursement of Value Added Tax and/or
on that the country faces an extraordinary opportunity         accelerated depreciation allowance for capital goods and
for the development of biofuels and has provided an            infrastructure
initial regulatory framework to specifically promote this      – Exemption on the Assumed Minimum Income Tax for
industry. In April 2006 a national law for the promotion of    the first three years
biofuels was enacted, mandating a blend of 5% of biodiesel     – Exemption on hydro infrastructure and fuels tax
for diesel fuels and 5% of bioethanol for gasoline as of
2010. Argentina’s biofuels law will create an annual captive
demand of approximately 700,000 m3 of biodiesel and            Export regulations. Biodiesel exports are taxed at
roughly 243,000 m3 of bioethanol.                              20% and receive an export rebate of 2.5%. Ethanol exports
                                                               are taxed at 5% and receive a 4.05% rebate. There are no
By passing this law, Argentina has joined a group of           quantity restrictions on exports.
pioneering countries that are advancing towards a greater
institutionalization of the sector, thereby stimulating
domestic production on the one hand and creating an
internal market on the other. At the same time, investors
can enjoy other fiscal incentives including:

                                                                                                                           11
V. Main Challenges


     Industry players and government agencies face key
     challenges to sustain growth and consolidate the sector’s
     competitiveness. In themselves, these challenges present
     attractive opportunities for the industry and Argentina.


     • Balancing the drive from domestic and
       international demand: in order to maximize its
       potential, the biofuels sector will have to increase
       production to meet domestic mandatory biofuel mixes
       while positioning the country as a major global biofuel
       supplier.


     • Increasing sector-specific qualified human
       resources: anticipating the demand for human
       resources will require joint public-private planning
       and investment efforts in order to identify and address
       industry-specific needs.


     • Consolidating Argentina’s position as a leader
       in the technological development of biofuels:
       to keep astride of future industry developments and
       become an active leader in the movement towards second
       generation biofuels the sector will need to fully capitalize
       on past experience and increase its RD capacity.


     • Set the regulatory groundwork for future
       developments: a key factor of success will be the
       regulatory framework to provide major stakeholders
       with a set of comprehensive incentives, and supply the
       sector with the necessary predictability as well as agility
       to adapt to new developments and challenges.


     OUR CHALLENGES ARE YOUR OPPORTUNITIES.




     SOURCES: The trends, data and figures included in this material were             “Emerging liquid biofuel markets ¿A dónde va la Argentina?”, IIIEE, 00; R.
     elaborated by ProsperAr on the basis of: Argentine National Institute of         Trostle, “Global Agricultural Supply and Demand: Factors Contributing to the
     Statistics and Census; Argentine Secretariat for Agriculture, Livestock, Fish-   Recent Increase in Food Commodity Prices”, Economic Research Service,
     ing and Food; J. Schvarzer, “Global Agricultural Supply and Demand: Factors      United States Department of Agriculture, May 00; “Biocombustibles:
     Contributing to the Recent Increase in Food Commodity Prices”, Working           rumbo a una nueva matriz energética”, in Terminal C, May 00; K. Joseph,
     Document, Universidad de Buenos Aires, December 00; J. Schvarzer and           “Argentine Biofuels Report 00”, Global Agriculture Information Network,
     A. Tavosnanska, “Biocombustibles: expansión de una industria naciente y          United States Department of Agriculture; and “World Ethanol and Biofuels
     posibilidades para Argentina”, CESPA, Working Paper N° 1, 00; P Lamers,
                                                                          .           Report”, F.O. Lichts, 00.


1
The information provided through this brochure does not constitute legal or professional advice whatsoever. ProsperAr (Agencia Nacional de Desarrollo
de Inversiones) reserves the right to revise, amend, alter or delete the information provided herein at any time, but shall not be responsible for or liable in
respect of any such revisions, amendments, alterations or deletions.
Photos: courtesy of Biodiesel del Plata, Stock Exchange and Flickr under Creative Commons license.


                                                                                                                                                                  1
Argentina at a glance


     Country profile

     Official name                                                                   República Argentina

     Capital city                                                                    Buenos Aires

     Main cities                                                                     Córdoba, La Plata, Mar del Plata, Mendoza, Rosario

     Surface area                                                                    . million square kilometers

     Population                                                                      0. million inhabitants

     Population growth                                                               1.0% per year

     Adult literacy rate                                                             9%

     Life expectancy at birth                                                         years

     GDP per capita (PPP)                                                            US$ 1,1

     Currency                                                                        Argentine peso ($)

     Form of government                                                              Federal Presidential Republic

     Political division                                                               autonomous provinces and the Autonomous City of Buenos Aires

     Time zone                                                                       GMT-0:00

     Official language                                                               Spanish




     Main Economic Indicators
                                                                                                       00                 00                   00                  00                   00                      00
     GDP growth rate (annual %)                                                                         .%                9.0%                   9.%                   .%                   .%                     .0%
     GDP (PPP) (millions of US$)                                                                 ,99              ,01                19,                9,0                ,10                ,0
     GDP (millions of US$)                                                                        1,0             1,1                11,9                1,                0,                ,0
     Exports of goods and services (millions of US$)                                                ,9              9,                 ,0                 ,                 ,0                 ,0
     Imports of goods and services (millions of US$)                                                1,              ,90                 ,99                 1,10                 ,                 ,9
     Balance of trade of goods and services (millions of US$)                                       1,1               11,9                1,0                 1,                 1,                  1,11
     Trade surplus (% of GDP)                                                                        1.%                   .%                  .%                   .%                   .9%                     .%
     Current account surplus (% of GDP)                                                                 .%                .1%                   .9%                   .%                   .%                     .%
     Primary fiscal surplus (% of GDP)                                                                  .%                .9%                   .%                   .%                   .%                     .1%
     Gross capital formation (% of GDP, constant prices)                                             1.%                1.%                  19.%                  1.%                 .%                  .0%
     Gross national savings (% of GDP, current prices)                                               19.%                0.%                 .%                  .%                  .%                .%E
     Foreign direct investment (millions of US$)                                                      1,                ,1                  ,                  ,                 ,                  ,99
     Exchange rate ($/US$)                                                                               .9                .9                   .9                   .0                   .1                    .1
     Foreign reserves (millions of US$)                                                             1,119              19,                 ,0                 ,0                 ,1                 ,
     Unemployment rate (% of EAP)                                                                     1.%               1.%                  11.%                  10.%                    .%                     .9%

     Source: ProsperAr based on data provided by the Argentine National Institute of Statistics and Census, the Central Bank’s Market Expectations Survey (REM), the International Monetary Fund and the United Nations
     Conference on Trade and Development (as of April 0, 009).




1
ProsperAr is Argentina’s National Investment Development Agency
                 Our mission is to develop direct foreign and domestic investment to contribute
                 to Argentina’s competitiveness and sustainable development.

ProsperAr’s four main objectives are:
Provide services to investors
                 ProsperAr provides investors with personalized professional services throughout the investment
                 process, from initial advisory services to investment facilitation and aftercare. The Agency’s team
                 assesses on investment projects, responds to queries from investors and provides key business
                 information. Leveraging the Agency’s cooperative relationships with different government bodies,
                 ProsperAr’s integral services offer investors a unified one-stop support system.


Attract and generate investment
                 ProsperAr works in the promotion, attraction and expansion of both domestic and foreign investment.
                 We identify investment and innovation opportunities in high growth sectors, communicating
                 them to national and overseas investors through international missions, conferences, meetings and
                 publications. We work to build relationships that enable multinational companies to take advantage of
                 local, regional and global opportunities. We also encourage domestic firms to expand and develop their
                 businesses.


Boost the Investment Environment
                 ProsperAr works to strengthen Argentina’s investment environment. We interact with local and
                 multinational companies, as well as potential investors, identifying and removing possible obstacles to
                 doing business in Argentina. Through active dialogue with the private sector, and in coordination with
                 other government departments, we advocate for the formulation of policies and programs to optimize
                 the investment and innovation environment.


Promote the internationalization of local companies
                 ProsperAr promotes the growth and internationalization of Argentine firms. Fostering local vocation
                 for innovation and entrepreneurship and promoting overall competitiveness are key aspects of
                 the Agency’s strategy. Two programs “Entreprenuer Development” and “Pioneers” are in place to
                 strengthen local companies’ critical capacities in different growth phases. ProsperAr also assists
                 international companies to invest in and/or work with their local counterparts to form global joint
                 ventures.


                 ProsperAr is your strategic partner to invest and prosper in Argentina.




What ProsperAr can do for you:

                  Provide timely and relevant information on business sectors and geographical
                    locations in Argentina.
                  Help identify investment and innovation opportunities in strategic sectors.
                  Troubleshoot red tape and obstacles; facilitate the investment process and doing
                    business in Argentina.
                  Assist in building partnerships between foreign investors and local companies.


                                                                                                                           1
To learn more about how investing in
BIOFUELS in Argentina
can benefit you, please contact us:

www.prosperar.gov.ar
info@prosperar.gov.ar
+54 11 4328 9510
Argentina's Growing Biofuels Industry
Argentina's Growing Biofuels Industry

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Argentina's Growing Biofuels Industry

  • 1. INVESTMENT OPPORTUNITIES Biofuels in Argentina Natural resources + Knowledge to meet global market needs
  • 2. Highlights TAKING ON A GLOBAL OPPORTUNITY Strong economic, environmental and geopolitical drivers are shaping the biofuels industry into a fast-growing global market. Growth over recent years and projections of a continued uptrend in growth provide significant opportunities for companies operating in countries like Argentina with the greatest potential to be global biofuel suppliers. A PREDICTABLE DEMAND FOR COMPETITIVE EXPORTERS The targets set for biofuel use in major industrialized countries create a predictable demand for biodiesel and ethanol, which will spur global biofuel trade. Based on the current production and projected export growth, Argentina is positioned to become a key biofuel supplier in world markets. BOOMING DOMESTIC PRODUCTION CAPACITY Due to significant investments in this highly dynamic sector, Argentina’s annual production capacity is set to reach .1 billion liters of biodiesel and approximately 1 billion liters of ethanol by 010. ARGENTINA’S OUSTANDING MIX OF RESOURCES Argentina’s competitive advantage is built on a foundation of abundant world- class agricultural commodities, qualified human resources and existing industrial capabilities. As world leaders of soybean oil exports, Argentine companies have relied on soybean oil as the main feedstock for biodiesel production. The country’s sugar industry has the growth potential to serve as a platform for bioethanol production. COMMITTED PUBLIC AND PRIVATE SECTOR Argentina has already passed a law mandating biofuel mixes for 010 and has established a number of incentives for the biofuels industry. However, keeping pace with new developments in the biofuel industry will require a joint RD effort between the public and private sectors in the context of a regulatory framework that presents players with a set of comprehensive incentives and gives the industry the necessary predictability.
  • 3. I. Why Invest in Biofuels in Argentina? • ARGENTINE BIODIESEL. Today Argentina is the fourth largest producer of biodiesel after the E.U., U.S. and Brazil, and its production capacity is expected to increase 300% in the next three years. Most of Argentina’s biodiesel is currently exported to foreign markets. • ARGENTINE BIOETHANOL. Ethanol accounts for the largest share of global biofuels production. With significant investments in the works, Argentina’s fast growing ethanol industry is gearing up to reach almost 1 billion liters of production capacity by 2010. • OUTSTANDING RESOURCES. A unique combination of factors—natural resources, human capital and industry infrastructure—are the pillars of Argentina’s current and projected performance. Its vast extensions of suitable land for agricultural production generate a comparative advantage based upon the production of • MARKET DRIVERS. The global biofuels markets of diverse crops used as feedstock (mainly soybean, corn ethanol and biodiesel are thriving. An insufficient and sugarcane) and the potential to develop non-food supply of fossil fuels, environmental concerns and world alternative feedstocks. Well-established vegetable oil and governments’ pursuit to ensure energy security highlight sugar industries offer the necessary support to expand the importance of biofuels as an alternative energy Argentina’s biofuels industry, transforming the country source. Production has tripled over the past 10 years in a leading world supplier. and 12% annual market growth is expected for the next decade. Argentina has become one of the leading nations • FUTURE DEVELOPMENTS. The drive towards increased in biofuels production by successfully leveraging its large efficiency, the development of second generation endowment of high-quality natural and human resources technologies and more efficient non-food feedstock will and existing industrial capabilities. accelerate the industry’s dynamics and open up business opportunities to developers, farmers, feedstock providers • FORESEEABLE PROFITS IN GLOBAL BIOFUELS TRADE. A and investors. Among global leaders in the application of large number of countries have set targets for biofuel use technology to agriculture, Argentina has great potential that will create a demand that exceeds their production to benefit from current trends in the biofuels industry. capabilities, thus spurring global biofuels trade. While production is currently concentrated in the United • MAIN CHALLENGES. Argentina will have to encourage States, Brazil and the European Union, the increasing a concerted effort to increase public and private RD demand for biofuels presents attractive opportunities in order to stay at the forefront of global industry for countries like Argentina with the key attributes developments. In order to encourage a forward looking for biofuel production to consolidate a position in the mindset within the industry, the government’s challenge market. Considering the wealth of industry-specific is to develop the appropriate regulatory framework resources, the most significant increases in biofuel capable of addressing current needs while adapting to production over the next decade are expected in the E.U., future circumstances. Brazil, Argentina and Canada. Argentina’s position in Mercosur and its strategic alliance with Brazil opens an attractive regional biofuels’ market.
  • 4. II. Sector Structure and Performance Almost 50 biofuels companies are currently operating in made for biofuel investments to the tune of US$800 Argentina. Leveraging its soybean oil production capacity, million. Among these are the joint investment of Enarsa, Argentina is mainly a biodiesel producer. Although Green Fuel, Noble Group (China) and Raiser to invest Argentina has developed a significant ethanol production US$190 million to build a soy mill and biofuel production capacity, the production for fuel use is only beginning to facility. emerge. Both biofuels segments exhibit a dynamic behavior in production and exports, and major investments have been Economies of scale. Currently, small plants are mainly geared towards supplying global markets. geared towards self-consumption. However, the average production capacity of the new plants (140,000 m 3) will BIODIESEL INDUSTRY STRUCTURE be almost six times larger than that of the existing ones (24,000 m 3) marking a domestic trend towards projects A strong and integrated domestic industry. with clear commercial purpose and a competitive scale. The Argentine biodiesel industry is mainly based on While today there are only two plants with an annual the use of soybean as feedstock. There are 31 companies capacity of over 100,000 m 3 of biodiesel, by 2010 there currently producing biodiesel with an estimated annual will be over 13. production capacity of over 745 million liters. Production is geographically concentrated in the provinces of Buenos ETHANOL INDUSTRY STRUCTURE Aires and Santa Fe. Almost all major players in Argentina’s vegetable oil industry own or are constructing biodiesel Emerging production. Ethanol production in Argentina plants. The two largest plants belong to large vegetable oil is concentrated in sugar mills in the northwestern part crushers and account for two thirds of current domestic of the country. Overall 17 firms with 23 mills are actively production capacity (Renova with 260,000 annual m and 3 producing ethanol. However, the ethanol produced by Ecofuel with 230,000 annual m 3). Total investment in these firms is not exclusively destined for fuel usage. In existing plants has been estimated at US$110 million. 2006, the firm Los Balcanes inaugurated the country’s largest ethanol distillery in the province of Tucumán (La Expanding production capacity. Eight more biodiesel Florida) with a productive capacity of 100,000 m 3 of sugar plants are currently under construction with a projected cane-based ethanol aimed to supply both the domestic and total annual capacity of 1,577,000 m 3 , and plans to build export markets. Other relevant sugar mills are the ones nine more production facilities –adding 809,000 m – have 3 located in Ledesma (30,000 m 3) in the Province of Jujuy, been announced. In 2007 alone, announcements were Concepción (27,000 m 3), La Providencia (13,000 m 3) and La
  • 5. Trinidad (12,000 m 3) in the Province of Tucumán, and the Biodiesel production in 2008 is forecast to surpass 800 San Martín de Tabacal mill (17,000 m ) in the Province of 3 million liters, four times greater than production output Salta, among others. estimates for 2007. Remarkably, production capacity is estimated to increase 300%, reaching 3.1 billion liters Alternative feedstocks. Although today local by the end of 2010, when all investments–underway and ethanol production is based on sugarcane as feedstock, announced–should be completed. With an estimated future production shows promising potential based production cost of under US$0.50 per liter, local on Argentina´s corn production capacity in addition production is very competitive in the international market, to sugarcane. There are several proposals for plants compared to US$0.50 in the E.U. and US$0.61 in the U.S.. producing ethanol from corn or sorghum, however none are currently under construction. Export performance. In 2007, biodiesel exports –accounting for 75% of total sales- reached US$133 million. Over 75% was exported to the U.S., and practically 24% to BIODIESEL SECTOR PERFORMANCE the E.U. Three plants concentrate 90% of exports (Ecofuel, Renova, and Vicentín). During the first quarter of 2008, Export potential. Biodiesel production in Argentina exports have already exceeded the level of the entire is primarily geared towards exports –particularly that previous year, with a value of over US$190 million (85% of the largest plants-. Projections for biodiesel global exported to the U.S.). production anticipate a 70% increase between 2008 and 2010 and it is expected that Argentina will rank among the top five producing countries, accounting for 7.2% of total ETHANOL SECTOR PERFORMANCE production. The five largest biodiesel producing countries will concentrate 56% of global production. Ethanol production. Although ethanol production for Domestic potential. Argentina has a significant fuel usage is taking its first steps in Argentina, the country domestic demand for diesel, which accounts for the largest already has a well developed ethanol production capacity. percentage of petroleum demand (66%). Additionally, In 2007, 200 million liters of sugar cane-based ethanol diesel consumption for the year 2015 is estimated to were produced in Argentina and total ethanol production grow 40% from 2005 levels. Since biodiesel easily capacity is projected to rise to approximately one billion replaces diesel, a growing domestic demand coupled liters per year by 2010. Approximately 60% of production with mandatory biofuel mixes is expected to play an (US$57 million in 2007) is geared towards the domestic increasingly important role as a production driver. market, for use mainly in the beverage, agricultural chemicals and pharmaceutical industries. The remaining Production performance. Biodiesel production, 40% (US$38 million) is exported for purposes other than exports and local consumption have steadily risen. fuel usage. Production is led by Atanor, Los Balcanes, and Ledesma. The average yield per hectare of sugar cane- based ethanol is of 4,875 liters, above the yields offered by Five Main Biodiesel Producers by 2010: Share in Total Production corn-based ethanol (3,000 liters/ha.) or sorghum-based U.S. 14.3% ethanol (2,000 liters/ha). Germany 12.0% Projected investments. Recent investment France 11.6% announcements will add over 500,000 m 3 of additional ethanol production capacity in the coming years. Some Brazil 11.1% of the major projects are those announced by Adecoagro Argentina 7.2% (175,000 m 3), Arcor (87,000 m 3), San José (87,000 m 3), and Bioetanol Río Cuarto (48,000 m 3). Sources: World Ethanol and Biofuels Report
  • 6. III. Foundation for Success An abundance of high quality natural resources, efficiency in agricultural production, advanced application of agricultural biotechnology and a developed vegetable oil CASE STUDY industry are the pillars supporting the substantial growth BIODIESEL DEL PLATA potential of Argentina’s biofuels production. An innovative domestic firm developing NATURAL RESOURCES environmentally sustainable projects Naturally rich. Argentina has vast extensions of suitable Biodiesel del Plata is a Biofuels company operating in land for agricultural production, some 32 million hectares Argentina since 00. The company is known for its of arable land. This generates comparative advantages ability to innovate and for developing environmentally related to the production of diversified crops used as sustainable projects with no effluents and no feedstocks for biofuels (i.e. soybean, corn, sugarcane) and environmental impact. to the development of other non-food alternatives. Over the past years, the company developed a Agricultural productivity. As a result of the business model for Biodiesel Refineries that was combination of its natural wealth and human resources, new in the Argentine market and allowed for the Argentina has experienced an agricultural revolution over processing of ungummed crude oil, used oil and the last 10 years, increasing to a maximum the productivity animal fats. The firm established the first production levels of its main crops. This in turn has allowed the location in South America to achieve Biodiesel country to reach record levels of agricultural production production using the Rohm and Haas ion exchange year after year. Today, Argentina enjoys the world’s highest system and to incorporate in all its production centers productivity figures in the production of soybean, corn and refineries of crude glycerol into industrial glycerin their derivatives. with a purity level of over % in order to increase the project’s economic sustainability. This resulted in the completion of two projects in 00: Agroindustrias Tejedor SA in San Lorenzo (produces ,000 tons a month) and Ricard Set Energías Renovables SA Grain and Oilseed Production (Millions of Tons) (produces 1,000 tons a month). 0 Grains Oilseeds The high skill level achieved by the firm’s employees 0 in Argentina has resulted in the constant search and development of new technologies for biodiesel 0 Millions of tons production. In this context, the company is developing 0 technologies (currently being patented) to convert 0 industrial waste into biofuels. Its aim is to take advantage of the resulting know-how to export this 10 model worldwide, and become the leader in the 0 000/01 001/0 00/0 00/0 00/0 00/0 00/0 00/0 biofuels industry in Argentina over 00-009. Source: SAGPyA.
  • 7. RELATED INDUSTRIES RESEARCH AND DEVELOPMENT Soybean oil industry. Argentina is one of the top Research areas. Currently, several programs are three soybean and soybean oil producers in the world. focusing on developing new technologies which would The country has 47 soybean oil producing plants with a rely on alternative feedstocks. Public universities, official combined daily crushing capacity of over 100,000 tons. entities and the private sector are simultaneously working These plants are mainly concentrated in the Rosario on a number of different projects. Some of these programs area (province of Santa Fe) in the heart of the soybean are based on the use of jathropa, algae, and castor oil plant. producing area in Argentina. The combination of high Research is also being conducted on feedstock which production and low domestic consumption makes can be produced in areas not suited for agriculture and Argentina the world’s leading soybean oil exporter, and which do not compete with food productions. Even when is expected to maintain this position in the foreseeable a large proportion of biofuel production is derived from future. Over 90% of soybean oil production is exported to traditional crops, these alternatives can offer better yields. major markets such as China and India. Castor oil can provide 1,290 liters of biodiesel per hectare and rapeseed would produce 929 liters per hectare, in Sugar industry. Mainly due to productivity comparison to the 906 and 502 liters per hectare for improvements, the Argentine sugar industry has sunflower and soybean, respectively (SAGPyA). significantly expanded in the past years. Investments during the last decades in the construction of new sugar mills and in the technological upgrading of existing ones REGIONAL COMPLEMENTARITIES resulted in record-high production levels. While currently geared mainly towards domestic demand, the sector’s Mercosur. From a regional perspective, the development effort to increase production has resulted in an improved of biofuels positions Mercosur as a strategic region in the export performance. During the 2002-2006 period world, with a wide range of supply options. Argentina’s production expanded by 47%, while exports increased by supply complements that of Brazil, the leading producer more than 160%. In 2006, sugar production reached a peak of sugar cane-based bioethanol. This broad-based supply of 2.4 million tons; exports accounted for approximately across the region potentiates the complementary capacities 30% of this volume. between countries and, above all, the common interests surrounding this issue, as well as fosters favorable conditions for a move in the direction of an aligned and LOCAL SKILLS AND TALENT coordinated development of biofuels on a Mercosur scale. Industry expertise. Biofuels production in Argentina is driven by a combination of natural resources advantages, INDUSTRY NETWORKING small investment requirements and the availability of highly-qualified resources and professionals specialized Public-private cooperation. Argentina´s biofuels in engineering and biotechnology. This production law states that the regulating authority will encourage generates a technologically coherent and environmentally cooperative agreements between the public and private sustainable opportunity that has begun to emerge. sectors to promote and encourage the development of Argentina is capable of becoming a relevant player in production technology and the use of biofuels. In late biofuels production but also on the production and 2006, the Argentine government created the Forum of design of biofuels plants and solutions. Some Argentine Energy Feedstock to coordinate research and development companies are already gaining presence in Latin America projects together with the private sector. and the U.S., offering knowledge and expertise in the production of biofuels. 9
  • 8. CASE STUDY ePlus: worldwide supplier for renewable energy solutions ePlus is a local company focused on biodiesel professionals, the company was ready to produce a project rollout, engulfing all the possible production major breakthrough: Argentina’s first soybean based steps from the oil extraction process to the refining biodiesel production plant of industrial scale. In 00, of the final fuel, including all the complementary in light of the growing market and the permanent services for a turn-key solution. The company’s RD requirements, ePlus formed an alliance with turn-key models include crushing facilities (chemical Grupo de Ingeniería Aplicada (GIA). GIA’s core group and mechanical), oil-based biodiesel production undertook several projects in the U.S., Argentina plants (transesterification reaction phase) and fully and other Latin American countries in the areas of integrated plants adaptable to a wide variety of oleochemichals, soaps and detergents and glycerin, crops (soybean, sunflower, canola, safflower) and becoming an industry leader working with high-tech animal fats. proprietary designs. After several projects in the local market, and export experience to neighboring The company started in May 00 as a project countries, the company has recently exported a turn- supported by Don Mario Semillas, a renowned key plant to the U.S. that consists of an integrated agribusiness leader in the local soybean market soybean-based biodiesel plant with an annual since 190. After gathering a team of experienced capacity to process ,000 tons of soybean oil. 10
  • 9. IV. Policy Initiatives REGULATORY FRAMEWORK Incentives. Argentina’s government has identified early – Early reimbursement of Value Added Tax and/or on that the country faces an extraordinary opportunity accelerated depreciation allowance for capital goods and for the development of biofuels and has provided an infrastructure initial regulatory framework to specifically promote this – Exemption on the Assumed Minimum Income Tax for industry. In April 2006 a national law for the promotion of the first three years biofuels was enacted, mandating a blend of 5% of biodiesel – Exemption on hydro infrastructure and fuels tax for diesel fuels and 5% of bioethanol for gasoline as of 2010. Argentina’s biofuels law will create an annual captive demand of approximately 700,000 m3 of biodiesel and Export regulations. Biodiesel exports are taxed at roughly 243,000 m3 of bioethanol. 20% and receive an export rebate of 2.5%. Ethanol exports are taxed at 5% and receive a 4.05% rebate. There are no By passing this law, Argentina has joined a group of quantity restrictions on exports. pioneering countries that are advancing towards a greater institutionalization of the sector, thereby stimulating domestic production on the one hand and creating an internal market on the other. At the same time, investors can enjoy other fiscal incentives including: 11
  • 10. V. Main Challenges Industry players and government agencies face key challenges to sustain growth and consolidate the sector’s competitiveness. In themselves, these challenges present attractive opportunities for the industry and Argentina. • Balancing the drive from domestic and international demand: in order to maximize its potential, the biofuels sector will have to increase production to meet domestic mandatory biofuel mixes while positioning the country as a major global biofuel supplier. • Increasing sector-specific qualified human resources: anticipating the demand for human resources will require joint public-private planning and investment efforts in order to identify and address industry-specific needs. • Consolidating Argentina’s position as a leader in the technological development of biofuels: to keep astride of future industry developments and become an active leader in the movement towards second generation biofuels the sector will need to fully capitalize on past experience and increase its RD capacity. • Set the regulatory groundwork for future developments: a key factor of success will be the regulatory framework to provide major stakeholders with a set of comprehensive incentives, and supply the sector with the necessary predictability as well as agility to adapt to new developments and challenges. OUR CHALLENGES ARE YOUR OPPORTUNITIES. SOURCES: The trends, data and figures included in this material were “Emerging liquid biofuel markets ¿A dónde va la Argentina?”, IIIEE, 00; R. elaborated by ProsperAr on the basis of: Argentine National Institute of Trostle, “Global Agricultural Supply and Demand: Factors Contributing to the Statistics and Census; Argentine Secretariat for Agriculture, Livestock, Fish- Recent Increase in Food Commodity Prices”, Economic Research Service, ing and Food; J. Schvarzer, “Global Agricultural Supply and Demand: Factors United States Department of Agriculture, May 00; “Biocombustibles: Contributing to the Recent Increase in Food Commodity Prices”, Working rumbo a una nueva matriz energética”, in Terminal C, May 00; K. Joseph, Document, Universidad de Buenos Aires, December 00; J. Schvarzer and “Argentine Biofuels Report 00”, Global Agriculture Information Network, A. Tavosnanska, “Biocombustibles: expansión de una industria naciente y United States Department of Agriculture; and “World Ethanol and Biofuels posibilidades para Argentina”, CESPA, Working Paper N° 1, 00; P Lamers, . Report”, F.O. Lichts, 00. 1
  • 11. The information provided through this brochure does not constitute legal or professional advice whatsoever. ProsperAr (Agencia Nacional de Desarrollo de Inversiones) reserves the right to revise, amend, alter or delete the information provided herein at any time, but shall not be responsible for or liable in respect of any such revisions, amendments, alterations or deletions. Photos: courtesy of Biodiesel del Plata, Stock Exchange and Flickr under Creative Commons license. 1
  • 12. Argentina at a glance Country profile Official name República Argentina Capital city Buenos Aires Main cities Córdoba, La Plata, Mar del Plata, Mendoza, Rosario Surface area . million square kilometers Population 0. million inhabitants Population growth 1.0% per year Adult literacy rate 9% Life expectancy at birth years GDP per capita (PPP) US$ 1,1 Currency Argentine peso ($) Form of government Federal Presidential Republic Political division autonomous provinces and the Autonomous City of Buenos Aires Time zone GMT-0:00 Official language Spanish Main Economic Indicators 00 00 00 00 00 00 GDP growth rate (annual %) .% 9.0% 9.% .% .% .0% GDP (PPP) (millions of US$) ,99 ,01 19, 9,0 ,10 ,0 GDP (millions of US$) 1,0 1,1 11,9 1, 0, ,0 Exports of goods and services (millions of US$) ,9 9, ,0 , ,0 ,0 Imports of goods and services (millions of US$) 1, ,90 ,99 1,10 , ,9 Balance of trade of goods and services (millions of US$) 1,1 11,9 1,0 1, 1, 1,11 Trade surplus (% of GDP) 1.% .% .% .% .9% .% Current account surplus (% of GDP) .% .1% .9% .% .% .% Primary fiscal surplus (% of GDP) .% .9% .% .% .% .1% Gross capital formation (% of GDP, constant prices) 1.% 1.% 19.% 1.% .% .0% Gross national savings (% of GDP, current prices) 19.% 0.% .% .% .% .%E Foreign direct investment (millions of US$) 1, ,1 , , , ,99 Exchange rate ($/US$) .9 .9 .9 .0 .1 .1 Foreign reserves (millions of US$) 1,119 19, ,0 ,0 ,1 , Unemployment rate (% of EAP) 1.% 1.% 11.% 10.% .% .9% Source: ProsperAr based on data provided by the Argentine National Institute of Statistics and Census, the Central Bank’s Market Expectations Survey (REM), the International Monetary Fund and the United Nations Conference on Trade and Development (as of April 0, 009). 1
  • 13. ProsperAr is Argentina’s National Investment Development Agency Our mission is to develop direct foreign and domestic investment to contribute to Argentina’s competitiveness and sustainable development. ProsperAr’s four main objectives are: Provide services to investors ProsperAr provides investors with personalized professional services throughout the investment process, from initial advisory services to investment facilitation and aftercare. The Agency’s team assesses on investment projects, responds to queries from investors and provides key business information. Leveraging the Agency’s cooperative relationships with different government bodies, ProsperAr’s integral services offer investors a unified one-stop support system. Attract and generate investment ProsperAr works in the promotion, attraction and expansion of both domestic and foreign investment. We identify investment and innovation opportunities in high growth sectors, communicating them to national and overseas investors through international missions, conferences, meetings and publications. We work to build relationships that enable multinational companies to take advantage of local, regional and global opportunities. We also encourage domestic firms to expand and develop their businesses. Boost the Investment Environment ProsperAr works to strengthen Argentina’s investment environment. We interact with local and multinational companies, as well as potential investors, identifying and removing possible obstacles to doing business in Argentina. Through active dialogue with the private sector, and in coordination with other government departments, we advocate for the formulation of policies and programs to optimize the investment and innovation environment. Promote the internationalization of local companies ProsperAr promotes the growth and internationalization of Argentine firms. Fostering local vocation for innovation and entrepreneurship and promoting overall competitiveness are key aspects of the Agency’s strategy. Two programs “Entreprenuer Development” and “Pioneers” are in place to strengthen local companies’ critical capacities in different growth phases. ProsperAr also assists international companies to invest in and/or work with their local counterparts to form global joint ventures. ProsperAr is your strategic partner to invest and prosper in Argentina. What ProsperAr can do for you: Provide timely and relevant information on business sectors and geographical locations in Argentina. Help identify investment and innovation opportunities in strategic sectors. Troubleshoot red tape and obstacles; facilitate the investment process and doing business in Argentina. Assist in building partnerships between foreign investors and local companies. 1
  • 14. To learn more about how investing in BIOFUELS in Argentina can benefit you, please contact us: www.prosperar.gov.ar info@prosperar.gov.ar +54 11 4328 9510