Luciano Santos Tavares de Almeida Secretary of Industry and Commerce Piracicaba - São Paulo - Brazil Tel: 55 19 3403-1160 E-mail: l.almeida@piracicaba.sp.gov.br

1. BRAZILIAN MARKET
ETHANOL

2. ETHANOL
FUEL OF THE FUTURE
(Henry Ford - 1906)
Ethanol first became popular as a fuel with the model T. (above)
Henry Ford mixed ethanol with gasoline to run this machine. In 1850, 90 million
gallons were produced in The United States.

3. The Bazilian Ethanol Programme
Pro Alcohol
Adopted in 1975 due to the international petrol crisis:
1 – Adding ethanol to gasoline
2 – Incentive for development of vehicles 100% on ethanol
Why Ethanol?
- Brazil has been one of the main producers of sugar cane since
century XVI.
- Since 1930 (especially during the 2nd World War),ethanol mixed
with gasoline has been used as automotive fuel in Brazil with good
results.

4. Domestic sales of automobiles and
light vehicles per fuel
160.000
140.000
120.000
100.000
80.000
60.000
40.000
20.000
0
3
4
no 5
ja 3
ja 4
ja 5
m 3
m 4
m 5
6
m 3
m 4
m 5
m 6
3
4
5
3
4
5
0
0
0
t/0
t/0
/0
t/0
/0
/0
/0
l/0
l/0
l/0
/0
/0
/0
/0
/0
/0
/0
v/
v/
v/
ar
ar
ar
ar
ai
ai
ai
n
n
n
n
se
se
se
ju
ju
ju
o
o
ja
n
n
Combustible Flexible Alcohol Gasohol Source: Anfavea

5. Productive Chain of Sugar in Brazil
5,4 million hectars Harvest 334 mills & destilleries
72 thousand growers 380 million tons (operation & projects)
ETHANOL SUGAR BAGASS
3,6 billion gallons 24 million tons
Bioplastic
Ethanol
Derivatives
Credits of
Food Carbon
Lisine
Pharmacy

6. BRAZILIAN PROCESS

7. Evolution of sugarcane in Brazil
tons cane per hectare
80
75
70
+69%
65
60
55
50
45
40
35
30
1961
1963
1973
1995
2005
1965
1967
1969
1971
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1997
1999
2001
2003
Fao Stat database

8. Evolution of sugarcane in Brazil
Million hectares of sugarcane in Brazil
7,0
6,0
5,0
+ 420 %
4,0
3,0
2,0
1,0
0,0
1961
1963
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
Fao Stat database

9. New
expansion
areas for
sugar cane
AMAZON RAIN FOREST growing
Pantanal
Sugar Cane
Atlantic
Rain Forest
Sources: IBGE & CTC

10. Billion of liters
10
12
14
16
18
0
2
4
6
8
70/71
72/73
Total
Hydrated
Anydrous
74/75
76/77
78/79
80/81
82/83
84/85
86/87
88/89
90/91
92/93
94/95
96/97
98/99
00/01
Ethanol Brazilian Production
02/03
04/05
06/07

11. Ethanol production projection in Brazil
between harvests 2005/06 and 2015/16
Thou. Million of liters
Harvest Source: IEA

12. Brazilian Ethanol Exportation Projection
4.5
4.0
3.5
3.0
Billion of liters
2.5
2.0
1.5
1.0
0.5
0.0
2004/05 2005/06 2006/07 2007/08 2008/09 2009/10

13. Energy Matrix 2005
Hydroenergy
and
Electricity
Uranium 15% Biomass
1% 30%
Coal
6%
Natural Gas
9%
Petroleum
and
Derivatives
39% Source: MME

14. Benefits to the ozone layer in the Atmosphere
120
104
100 86
85
80
80
60 51 53
40
20
0
CO HC NOx
Gasolina 0%
Gasoline 0% Gasohol 22 %
Gasohol 22% Ethanol 100%
Etanol 100%
Source: ANFAVEA
Fonte: ANFAVEA

18. Ethanol Cluster - APLA
APLA is an entity that seeks to unite all the ethanol productive
chain,which is composed of industries that produce
equipment, research and technical development centers,
associations of the ethanol sector and producers:
- 10 distilleries
- 70 industries
- 05 Institutions and Research and Development Centers
- 19 Public and Private Entities
- Harvest - 16,7 million tons
- Ethanol Production - 502 million liters
- Sugar - 1.380 thousand tons
- Energy - 172.900 mw/year

19. APLA - Objectives
- Planning and Organization of the Sector.
- Association with government and private entities for development
of the ethanol productive chain.
- Advertisement of the products and services rendered by the companies.
- Statistical Data Bank and Information Center.
- Standardization and certification of ethanol and development of new
technologies & equipment .
- Development of executive project for logistic and production flow of the
Ethanol Cluster area .
- Studies and researches for new applications, markets and products
derived from ethanol.

20. New projects of distilleries
anywhere in the world
Products, Services and BrazilianTechnology Available
- Economical feasibility studies and analysis of
area/soils and weather feasibility
- Supply of sprouts and productive & resitant
genetic diversity
Photo: Unica
- Technology for plague control and combat

21. Products, Services and Brazilian Technology Available
- Machinery and Equipment for cutting,
loading and transportation
Photo: Motocana
- “Turn-Key” Plants
. Sugar & Ethanol Plants
. Ethanol Destilleries
. Energy co-generation using bagass
Photo: Dedini . Biodiesel Plants
- Consulting and follow-up of all process of the
productive chain
Photo: Unica
- Professional Qualification

22. BUSINESS PROPOSALS
1 – Ethanol Production Projects anywhere in the world:
. Supply technology, render services and products
. Studies of Economical Feasibility
. Projects Implementation
2 - Exportation of Brazilian ethanol to the United Kingdon:
. Strategic plan
. Public policies
. Local fuel distributors
. Contacts with Brazilian producers
. Logistic operators and traders
3 – Association with Brazilian companies for production of
ethanol in Brazil
. Contact with Producers Associations
. Brazilian society legislation
. Economical feasibility projects
. Research Centers and Universities

23. APLA - Members
Ministério de Desenvolvimento,
Indústria e Comércio Exterior

24. Contacts
APLA – Ethanol Cluster
Municipal Department of Industry and Commerce of Piracicaba
São Paulo - Brazil
Phone: 55 19 3403-1160
E-mail: semic@piracicaba.sp.gov.br

25. THANK YOU
Luciano Santos Tavares de Almeida
Secretary of Industry and Commerce
Piracicaba - São Paulo - Brazil
Tel: 55 19 3403-1160
E-mail: l.almeida@piracicaba.sp.gov.br