Latibex biofuels 21nov07


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Latibex biofuels 21nov07

  1. 1. 9º Foro Latibex 9º Foro Latibex Petrobras and the Biofuels Almir Barbassa CFO and Investor Relations Officer CFO and Investor Relations Officer Madrid, November 2007 Madrid, November 2007
  2. 2. Disclosure The presentation may contain forecasts about future events. Such forecasts merely reflect the expectations of the Company's management. Such terms as "anticipate", "believe", "expect", "forecast", "intend", "plan", "project", "seek", "should", along with similar or analogous expressions, are used to identify such forecasts. These predictions evidently involve risks and uncertainties, whether foreseen or not by the Company. Therefore, the future results of operations may differ from current expectations, and readers must not base their expectations exclusively on the information presented herein. The Company is not obliged to update the presentation/such forecasts in light of new information or future developments. Cautionary Statement for US investors The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this presentation, such as oil and gas resources, that the SEC’s guidelines strictly prohibit us from including in filings with the SEC.
  3. 3. Brazilian Energy Matrix (2006) Sugar-Cane Other Wood and Other Renewables Biomass 13,8% 2,9% Renewable 13,0% Sources 44.5 % Hydro 14,8% Uranium Oil Products 1,2% 38,7% Mineral Coal % 6,3% Natural gas 100 9,4% 80 60 86 RENEWABLE 40 55 14 45 NON-RENEWABLES 20 0 World Brazil Source: MME, BEN 2006
  4. 4. Brazil and the Biofuels Brazil is still a diesel importer; Brazil is a prominent country in the biofuels market; Land availability and weather conditions are suitable for biomass production; Increasing world demand for renewable fuels; Consolidated ethanol production; Biodiesel production is considered strategic to Brazil.
  5. 5. Petrobras Strategy Corporate Strategy Commitment to sustainable development Social and Environmental Integrated Growth Profitability Responsibility Expand operations in target markets for oil, oil products, petrochemicals, gas and energy, biofuels and distribution, being a world benchmark as an Corporate Strategy integrated energy company To grow To expand Develop and lead Expand operations in Operate on a global production and oil integrated the Brazilian petrochemicals in Brazil basis in biofuels and gas reserves operations in natural gas market and South America on commercialization and sustainably, being refining, and operate on an an integrated basis logistics, leading the recognized for commercialization, integrated basis in with the PETROBRAS domestic production excellence in E&P logistics and the gas and electric Group’s other of biodiesel and operations distribution with a energy markets businesses expanding focus on the with a focus on participation in the Atlantic Basin South ethanol segment America Operational, management, technological and human resources excellence Downstream Biofuels E&P Distribution Gas & Energy Petrochemicals (RTC)
  6. 6. Business Strategies Renewable Energy Investment 2008-2012 Target 2012 Biodiesel Plants Availability of 938 Thousand cu.m/year Vegetable oil Processing HBio (Bio-Refining) 1,600 Thousand cu.m/year Ethanol Pipelines Export of 4.75 million cu.m/year of Ethanol Ethanol Project Vessel Aeolic Energy Installed Capacity of Generation of Solar Energy 365 MW Electric Power from Renewable Sources Other Sources of Renewable Energy Total avoided GHG emissions: 3.93 MM tons CO2 equivalent Total investments in energetic development of renewable sources and biofuels of US$ 1.5 billion
  7. 7. Biodiesel market Future Markets for biodiesel Law 11.097/2005 – established minimal percentage for biodiesel mix in diesel 2008 2005 to From 2013 to 2012 on 2007 (2% demanding) (5% demanding) (2% allowable) (5% allowable) Brazilian market Brazilian market Brazilian market 0 - 840 million litters 0,8 - 2,5 billion litters 2,5 billion litters (*) Approximately 43.000 bpd of Diesel
  8. 8. Biodiesel production facilities 3 Projects Being Implemented Quixadá Capacity: 171 thou m3/year (~1 million bpy) CE Investments (2008-12): US$ 40 million (*) Inputs Family Agriculture: castor, cotton, and palm. Complementary: soy. BA Jobs Generation: Candeias Construction: 1,200 direct and 400 indirect Operation: 105 direct MG Montes Raw material production:70,000 families Claros Start up: 4 Q/2007 semi-arid region All Petrobras Biodiesel has Social Fuel Seal (*) Total Investment – US$ 158 million
  9. 9. New opportunity for business Ethanol global market – 46.5 Billions Liters North and Europe Central America 37% Brazil 9.8% 35% South America Asia 38% 16.2% Today the ethanol consumption is 2,6% of gasoline MKT Increasing ethanol to 10% of gasoline will represent 118 Billions Lt
  10. 10. Ethanol Exports Ethanol Exports (Thousand m3) 5.000 4.750 4.000 y. p. 3.000 5% 45, 2.000 1.000 500 0 2008 2012 BP 2008-12 - Ethanol Exports (Thousand m3)
  11. 11. Raw Material Comparison Energy Production / ha Quantity of out/ Energy RAW MATERIAL (kg) Ethanol/ ha in SUGAR CANE 85,000 7.080 liter 8,3 CORN 10,000 4.000 liter 1,3 - 1,8 Area Type (Land use in Brazil) (MMha) • Total country 851 • Native Amazon Forest 370 • Secondary Amazon Forest and Others 180 • Native Forests 6 • Pasture 197 • Temporary Crops 59 • Permanent Crops 7,6 • Available land 263 • Available land with low impact (*) 90 Source: FAO, 2002 and EMBRAPA (*)
  12. 12. Petrobras Investments to Export Ethanol Target: Export 4.75 MM cu.m/year in 2012 New Ethanol Pipeline (1.150 Km) New Pipeline (1412 km) New Water Way Replan – Ilha Dágua Pipeline (Current flow) for Ethanol Tietê-Paraná Water way Senador Canedo – São Sebastião Pipeline Replan – Brasília Pipeline (OSBRA) Replan – Guararema Pipeline Existing Pipeline Future Pipeline New Ethanol Existing Terminal Pipeline (919Km) Future Terminal Exportation Rio de Janeiro São Paulo Marine Terminal Marine Terminal
  13. 13. Petrobras’ Technological Roadmaps on Biofuels Petrobras’ Technology Evolution Stages 2006 - 2010 2011 - 2015 2016 - 2020 Large-scale deployment Technology implementation (1st industrial unit) Demonstration (Prototype unit) BTL (Biomass to liquids) HBIO R&D Biodiesel (including pilot plant) Lignocel. Ethanol
  14. 14. QUESTION AND ANSWER SESSION Visit our website: For more information contact: Petróleo Brasileiro S.A – PETROBRAS Investor Relations Department E-mail: Av. República do Chile, 65 – 22o floor 20031-912 – Rio de Janeiro, RJ (55-21) 3224-1510 / 3224-9947