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Carlos cavalcanti bnds financiamento


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Carlos cavalcanti bnds financiamento

  1. 1. WBM Brazil 2011 Finance & Investment The role of BNDES in the biofuels industry Carlos E. Cavalcanti Head of Biofuels Department
  2. 2. The BNDES Agenda <ul><li>Expand the industry capacity </li></ul><ul><li>- agri and industrial Capex (including biopower generation projects) </li></ul><ul><li>Finance logistics improvements for efficient ethanol transportation </li></ul><ul><li>- Logum (project finance scheme), USD 4.4bn Capex, 1,330 km stretch, first tranche underway </li></ul><ul><li>Finance the capital goods supply chain </li></ul><ul><li>- enterprises reorganization and consolidation process </li></ul><ul><li>Finance innovation (advanced biofuels platforms) </li></ul><ul><li>- traditional credit lines and the PAISS Program </li></ul>Total disbursement over the 3-year period (2008-10): BRL 20.6bn (USD 11.1bn)
  3. 3. PAISS in breaf What? Joint Program (BNDES and FINEP) to finance innovation in the sugar-based ethanol and chemical sectors Why? To foster, select and finance initiatives (business plans) that focus on developing, producing and commercializing new industrial technologies to process the sugarcane biomass What does it offer? Coordination of the efforts between the BNDES and FINEP focusing on specific research lines: BRL 1bn (~ USD 600m) What are the focus points? (i) Cellulosic Based Ethanol; (ii) New sugarcane products; (iii) Gasification When is the deadline for BPs submission? BPs should be submitted by October 14 (ii) + (iii) and November 18 (i)
  4. 4. Vision for the future 1970 2003 2005 2015-20 Sugar 2004 AV T PAISS Program Oil Crisis Proalcool Introduction of flex-fuel cars: Sugar based ethanol boom Biotech & building blocks Advanced biofuels Bio-based chemicals Biorefinery concept Biopower generation projects (retrofits) Proinfa & BNDES biopower credit line
  5. 5. Conclusions <ul><li>The increase in the flex-fuel fleet was not accompanied by growth in ethanol production, despite the industry’s idle capacity (~ 130m tonnes) – proving the need for immediate investment in sugarcane renewal and expansion . </li></ul><ul><li>To meet growing demand up to 2015-16, an extra 50-60m tonnes of sugarcane should be available each year from now on. The additional ethanol output should come from the ramp-up process in the new plants and some brownfield investment (up to 150m tonnes). </li></ul><ul><li>In the mid-term, scarce opportunities to acquire strategic assets may reignite the interest in greenfield investments. </li></ul><ul><li>With the increase of domestic and international demand, the consolidation of ethanol as renewable fuel and the development of new sugarcane by-products, investment in technology is key to guarantee Brazil’s competitive advantage in the biofuels industry. </li></ul>For more information, visit
  6. 6. Thank You Carlos Eduardo Cavalcanti Head of Biofuels Department Industrial Division BNDES Phone: +55 21 2172-7181 ceduardo