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Minas gerais your ideal biodiesel plant location in brazil pdf


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Minas gerais your ideal biodiesel plant location in brazil pdf

  2. 2. features of envisaged areaTotal semi-arid area: 1.219.021,50Km2, equivalent to about 1/5 of Brazil– comprising ten States Maranhão,Piauí, Ceará, Rio Grande do Norte,Paraíba, Pernambuco, Alagoas, Sergipee Bahia and Minas Gerais. Population:1/3 of Brazil (55 million)
  3. 3. the social energy biosphere
  4. 4. the rationaleWhen the National Program of Biodiesel Production and Use (PNPB) was started, onDecember 2004, the Brazilian Government relied on the growing demand for fuelsfrom renewable sources and on the Brazilian potential to meet a substantial part ofthese needs, thus generating jobs and income in rural areas, reducing regionalinequalities and contributing to foreign-exchange savings and to the improvement ofenvironmental conditions.There is widespread consensus among energy specialists as to the fact that theTwenty-first Century will be the age of agroenergy.Energy security must be achieved through the increasing production of fuels fromrenewable sources and this achievement requires compliance with the requirementsof sustainability in the broad sense : environmental, economic, social andtechnological sustainability.Brazil has very favorable land and climate conditions and has a great potential for theproduction of biomass. The addition of value to agricultural activities represents amajor comparative advantage to Brazil. Biodiesel is one of these possibilities,perhaps the most promising one, as the demand for energy will increase as the worldeconomy keeps growing.In this context, the Government has foreseen the possibility – which is actually takingplace – of engaging small farmers and producers of the Brazilian poorest regions inthe biodiesel value chain. This is being achieved by means of tax incentives grantedto firms that purchase oil-producing crops grown by small farmers. With the purposeof creating market for biodiesel, a law that requires the addition of biodiesel intodiesel (2% in 2008, and 5% in 2013) was sanctioned.
  5. 5. Brazil: a global benchmark in RETBrazil has ideal conditions for becoming a major world producer ofbiodiesel. It has a vast amount of arable land, part of which is notsuitable for food crops but has the right soil and climate forgrowing a range of oilseeds.Biodiesel will make Brazil a global benchmark in the use ofrenewable fuels.It first won this position in the 1970s with theintroduction of ethanol made from sugarcane to power automotivevehicles.The National Alcohol Program, Proálcool, was the largest fossilfuel substitution program in the world automotive market. It isstill considered a global example of excellence, and Brazil remainsthe largest producer and consumer of fuel alcohol in the world.The experience Brazil has accumulated through the Proálcoolserves as a strong foundation for implementing the biodieselprogram and maximizing the nation’s competitiveness in arelatively short period.
  6. 6. Brazilian National Plan for Biodiesel The National Program for use and production of Biodiesel (PNPB) is a Federal Inter- ministerial program with an aim at implementing a sustained development , technically and economically. The emphasis lies on social inclusion and employment/wealth generation and regional development
  7. 7. Brazilian energy matrix
  9. 9. 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. Excellent infra-structure 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 laborMINAS GERAIS State stands at a vibrant moment in its development,introducing entrepreneurial changes, innovation, paradigm shifts, andopenness for new alternatives and investments.
  10. 10. The State governments is enacting consistent, long-range, and coordinated policies thatare informed by broad stakeholder participation. Policy priorities in Minas Gerais Stateinclude:Strengthen the Market: creating an enabling environment based on sound fiscal policyand support for private investment, infrastructure development and the building oftransportation fleets that are able to use the new fuels.Speed the Transition to Next-Generation Technologies: expediting the transition tothe next generation of feedstock and technologies that will enable increasedproduction at lower cost, while reducing negative environmental impacts.Protect the Resource Base. Maintaining soil productivity, water quality, and otherecosystem services . National and international environmental sustainability principlesand certification systems are important for protecting resources . Encourage Broad Rural Economic Benefits. Fiscal and land use policies to determinehow broadly the economic revenues from biofuels are spread and how they will shaperural economies.Facilitate Sustainable International Biofuel Trade. Continued rapid growth of biofuelswill require the development of a true international market in these fuels Efficiency and Improved Public Transport. BThe State biodiesel program is being bedeveloped within the context of a broad transformation of the transport sector aimedat improving transport efficiency.
  11. 11. The State efforts To achieve the efficacy, the State Government has undertaken aprofound revision of its structure, including the empowerment of thedevelopment apparatus with a greater flexibility in order to meet thenew demands of society . The objective of Minas Gerais development is now to increase thecompetitiveness of its economic base, targeting the state’s supplychains, transforming comparative advantages into real and enduringcompetitive advantages. The new model gives primacy to the private initiative in determiningthe economy’s dynamic as well as an elevated degree of openness to theinternational economy. Bio-fuels production has driven special attention from the StateGovernment and counts with its full support and incentives.
  12. 12. The State program for bio-fuelsThe program, set forth in Law no. 15.976/2006 has the following goals: Research and technology development; Technology transfer to the private sector; Job posts creating and improvement of income distribution; Reduction of fossil diesel imports; Reduction of gas pollution emission; Development of Feed-stock productionTargets up to 2007/2008 : 250.000 hectares crop plantation for production of B2 (blend 2% ), reaching 625.000 he for production of B5 in 2013; Direct income generation to 100.000 families, corresponding to about 500.000 job posts up to 2007.
  13. 13. entrepreneurial state culture While the State of Minas Gerais assumes the role of promoter and clearinghouse for investments, it is aligned with the basic concepts of this new entrepreneurial culture, which involve: overcoming bureaucratic bottlenecks that inhibit the adoption of performance-based models of administration. breaking with inefficient management practices. decentralizing and opening spaces for the involvement of the private sector in the process of development. managing fiscal crises, economic externalities, and imperfect contracts in the credit markets; overcoming the lack of clear regulatory function and market credibility; Long-term planning: research and development programs that present an investment portfolio for attracting private sector interest; Coordination among diverse state development institutions: cutting waste, redundancies, and loss of efficiency.“ Minas Gerais is presents Brazil with a new management model. We have leftbehind that motto that Public services are inefficient by nature. We are bringingprivate sector management methods , with performance evaluation and theestablishment of goals to be achieved. “ ( Governor Aecio Neves)
  14. 14. economic overview TRANSPORT: Largest road network in Brazil: 265.000 km and extensive railroadnetwork: 5.080km, ensuring logistics and easy flow of products to main domesticmarkets and export through the most efficient ports in Brazil: Santos, Rio deJaneiro/Sepetiba and Vitoria. COMMUNICATION: 5 million fixed lines and 3 million mobile lines. Fiber optic linksconnect the State to the main cities. Minas is reckoned as the benchmark for thequality of its communications. EDUCATION: the high quality of Minas education has been internationally recognizedby UNICEF: 15.945 basic education schools, largest university network. ENERGY: one third production of the electric power of the country. INVESTMENTS: it has been committed in excess of USD 100 billion in the next coupleof years LEGISLATION: modern and operative regarding investments, keeping up withinternational standards. Minas people and institutions are traditional in their respectand commitment to agreements and contracts INTERNATIONAL AIRPORT: The Tancredo Neves Airport is one of the most modernairports and, for its exceptional conditions, has been chosen to be the first one to setup the industrial park concept, creating a free trade zone for import, export anddistribution. Companies will receive from State exceptionally favorable fiscalconditions and other incentives.
  15. 15. comprehensive facilities CAPITAL INVESTMENTS: protected by the Central Bank of Brazil, allows toconvert credit into investments which can be set off against imports of assetswithout exchange coverage. ACQUISITION, MERGING, FUSION: fully supported by Brazilian corporate laws. TECHNOLOGY TRANSFER: Brazilian intellectual property law regulates theapplication of patents. FUNDING, FINANCING AND INCENTIVES: besides national incentives, Minasoffers a variety of financing schemes and incentives for new projects andcompetitiveness of existing ventures through its State development bank – BDMG,such as: FIND (INDUSTRY INCENTIVE FUND): a credit instrument to foster industrialdevelopment through two financial support programs, financing fixedinvestments and working capital. FUNDIEST: designed to develop strategic industries. FDMM: to fund mineral and metallurgical projects FUNDESE: for small and medium-size companies dedicated to new technologies. PRO-FOREST: to fund forestry activities. FASTUR: financial incentives to tourism in regions of recognized potential.
  16. 16. comprehensive facilitiesIn its efforts, BIOVALE counts with a number of efficient State organizations, working together toaccelerate and stabilize the implementation of your investments, such as: SEDE – The State Secretariat of economic development: is in charge of the overall activities relatedto the economic development of the State. BDMG – The Development Bank of Minas Gerais: manages state funds and finances enterprises. CDI- The Company of Industrial Districts of Minas: is in charge of industrial areas making availablefull infra-structure. FIEMG: The Federation of industries of the State of Minas Gerais -congregates 130 industryassociation, representing 80.000 industries in Minas Gerais. It has an international division to assistinternational affairs. INDI – Integrated Development Institute: It carries out research, elaborate investment opportunitiesin the State and assists interested investors. JOÃO PINHEIRO FOUNDATION: renders technical services related to economic and socialdevelopment. CETEC – Technological Center Foundation of Minas: researches projects and technological services. EUROCENTRO/AL-INVEST: is a cooperation program between European and Latin Americancompanies and institutions. MINASINVEST: It is an investment promotion agency created by the civil society with the full supportof the State Government and private sector. BRAZIL TRADE NET/SIPRI: created by the Ministry of Foreign affairs to foster Brazilian exports. PARTNERSHIP SEARCH DATABASE: managed by the European Commission, it is an important tool toassist small and medium size enterprises search for partners for transnational cooperation.