Biovale energia partnership & prospects


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Biovale energia partnership & prospects

  2. 2. The strategy of BioVale is tocluster the various stakeholders ofthe biodiesel sector, organizingand aligning them inentrepreneurial design.The great opportunity is to clusterthe best capabilities andresources to the benefit of thepartners and shareholders of spin-off companies.Therefore, the innovation andintellectual capital is BioVale´smain asset, holding skills in Braziland abroad to make out turn-keybiodiesel projects.cluster of skillsINNOVATIONPERFORMANCEBUSINESSCLIMATECOLABORATIONSPECIALIZATIONECONOMICCOMPOSITIONPRODUCTIVITYSTRATEGYBIODIESELCLUSTER
  3. 3. The main objective of the Hub is to bring capabilities of the variousstakeholders involved in the bio-diesel production chain, both in Brazil andabroad providing resources and diffusing knowledge to the linked firms.The benefits provided through such linkages are of great significance becauseof the complimentary capabilities among the stakeholders.Linkages with foreign organizations can be a great driver of dynamism andcompetitiveness to develop effectively and rapidly the Brazilian bio-dieselprogram. The foreign firms benefit from linkages are reduced costs, localmarket and product intelligence and enhanced assets (UNCTAD 2001).MINASINVEST´s interventions, as a leading IPA (Investment promotion agency)are important to the extent that investors believe that an enterprising IPA canassist them in identifying and introducing reliable local firms andorganizations with whom the investors can partner.The linkage envisages upgrading domestic enterprises; facilitating thetransfer of technology, knowledge and skills; improving business andmanagement practices; and facilitating access to finance and markets.linking the stakeholders
  4. 4. Biodiesel - a Mutual Profitable PartnershipAs oil prices and environmental concerns have risen in the past fewyears, investment in new biofuel facilities has mushroomed in Brazil.The Brazilian National Program for use and production wasincorporated in the Brazilian energy matrix by Law nr 11.097/2005 .Large trans-national corporations, as ADM, have already startedinvesting in biodiesel projects in BrazilThe crop area required to produce the blend of initial mandatory2% of biodiesel will be 1.5 million hectares, equivalent to only 1% ofthe total acreage under crops or available for agriculture throughoutBrazil (150 million hectares).BIOVALE ENERGY: YOUR PARTNER IN BRAZIL – FROM INCEPTION TO CONCEPTION
  5. 5. Bearing high agriculturalproduction costsBearing internal/externalobligations of emission reduction(Kyoto Protocol and othercompromises)Bearing scarcity of cultivationlandsWilling strategic alternativesfor vegetable oil and diesel supplyPossible partnersCountries :Having to meet social andenvironment responsibilitiesBearing environment liabilitiesWilling to attract SRIand valuing their stock pricesBearing intensive need of fuelsourcesInvestors in prospective highreturn SRICompanies :BIOFUELS: FUTURE´S MOST PROSPECTIVE INVESTMENT
  6. 6. cooperation/partnershipPossible areas of interest:Utilization of Partners technology for biodiesel plants inbuilding, logistics, utilization of glycerin and other by-products, specification, engine tests, etc.Sale of carbon credits (MDL) obtained through theutilization of biodiesel in Brazil.Export of vegetal oil and biodiesel to Partner´s country.Exploitation of the potential domestic market
  7. 7. General coordination among the various stakeholdersResources (financial and management)Industrialization: oil extraction and transesterificationLogistics (sales, distribution, export process, shipping)GENERAL CORPORATE ACTIVITIESBioVale contributionsturn-key/Global solution in Biodiesel projectsResearch & DevelopmentInstitutional and Government supportProject development, Project Financing an FundingInternational product commercializationLogistics (sales, distribution, export process, shipping)GENERAL CONSULTING ACTIVITIES
  8. 8. Implementation goalsInternalcapabilitiesExternalcapabilitiesProfessionalPOOLRoles ofstakeholdersstrategiesAction planResourcesmanagementmonitoringprofessional managementBioVale Energy: your partner in Brazil.
  9. 9. the price ofcrude oil tripledbetween early2002 and mid-2005 whilenatural gasreaches a levelsix times greaterthan ten yearsearlier.Market scenario and prospectsSource: GTZ/WorldWatch Institute
  10. 10. energy companies have not invested in buildingenough refinery capacity to meet the growing level ofworld demand. World oil production has gone up by 40%in the past 20 years while refinery capacity has onlygone up 15%.the oil reserves discovered between 1950 and 1980 are being run down.companies havenot been able tofind enough newoil and gas fieldsto replace theexhausting ones.Oil is beingpumped out ofthe ground threetimes faster thanit is beingreplaced by newoil finds.The growing gapSource: GTZ/WorldWatch Institute
  11. 11. "There are not enough large-scale projects in the developmentpipeline right now to offset declining production in mature oil fieldsand to meet global demand growth beyond 2007". (Chris Skrebowski,the editor of the Petroleum Review )The total amount ofenergy that the worldgets from oil and gaswill begin to declineafter 2010.Will oil prices rise further?Source: GTZ/WorldWatch Institute
  12. 12. The global demand for oil is increasing by just over 2%every year at present.This increase in demand added to the gap being createdby the declining supply, implies new energy sources eachyear equivalent to 4-5 per cent of the worlds current oilproduction:around 1,800 million barrels of oil a year.In 2015, when world gas output ceases to increase tomeet the its growing demand , the new energy sourceswould have to increase the annual rate at which they grewby another 900 million barrels.What alternative sources to fill the gap?Source: GTZ/WorldWatch Institute
  13. 13. The only truly sustainable energy sources are those basedon the flow of energy from the sun: solar, hydro, wind,wave, biomass.These flows are very large in comparison with humankindsuse of energy.Renewable sources can therefore meet all the worldsenergy needs, both now and in the future.The amount of energy supplied by renewable sourcescould be 120 times its present level .What alternative sources to fill the gap?The problem is to develop these sourcesquickly enough to fill the gap as it opens up.Source: GTZ/WorldWatch Institute
  14. 14. The world is on the verge ofunprecedented growth in theproduction and use of biofuels , byvirtue of:Rising oil prices, national securityconcerns, the desire to increase farmincomes, and a host of new andimproved technologies .The two most prevalent biofuels areethanol and biodiesel.World production of ethanol morethan doubled between 2000 and 2005,while production of biodieselquadrupled.Biofuels: a Booming Industry
  15. 15. Renewable energy will have to supply a greater share of the worldsenergy requirements.It is estimated that the market for clean energy technologies couldbe worth $1.9 trillion by 2020. The financial sector has a key role toplay in developing and promoting this market.In the next 25 years, the world will consume all that has beenproduced in fossil oils so far.The world´s dramatic increment for fuels should be supplied by bio-fuels.In the future, In the short run, ETHANOL and BIO-DIESEL are themain bio-fuels.Renewable energy is both a solution and a businessopportunity; BUSINESS AS AN AGENT OF WORLD BENEFITRET OPPORTUNITIES
  16. 16. Brazilian ethanol´s use and productionPRODUCTION CAPACITY: 18 billion liters/yearPRODUCTION: 15 billion liters/year (seed/2004/2005)EXPORTATION: 2.4 billion liters in 2004SUGAR CANE PLANTED AREA: 5.6 million hectaresPOTENTIAL FOR AGRICULTURAL EXPANSION IN BRAZIL:90 million hectares of arable lands – Without any forest removalINTEGRATED PRODUCTION OF SUGAR AND ETHANOL:Provide production flexibilityUTILIZATION OF ETHANOL IN VEHICLES IN BRAZIL:Automobiles, light commercials, motor-cycles and aircraftsFlexible Fuel light vehicles: reached 37% of internal market sales in 2005
  17. 17. Source: MMELaw 11 097/2005: it sets forth a mandatory use of biodieselmixture to diesel, which reflects in the following prospects20%2020202012,4billionsliters/year12,4billionsliters/yearBrazilian domestic market projection
  18. 18. Brazil’s export potentialWith the launch of commercial production, Brazilbecomes a potential exporter of biodiesel.The EU aims to ensure that 2% of all the fuel consumedin the region is renewable by 2005, but it has limitedacreage available for growing rapeseed, the mainfeedstock produced in Europe, and industrial capacity isinsufficient to meet the stipulated demand.Despite these constraints, the proportion of renewablefuels is set to reach 5.75% by 2010 according to EUDirective 30, ratified by the European Parliament in May2003.Given the limitations for production growth in Europe,Brazilian biodiesel enjoys an unprecedented opportunityto build market share in the continent Europe.
  19. 19. MarketsightStructure &skillsStrategicalliancesFUNDINGEFFICIENT MANAGEMENTAppliedmethodologiesTechnologicalinnovationplanningCompetitiveness and sustainabilityMaking the project workable