1er congreso internacional de biocombustibles the brazilian experience on biofuels 1er congreso...
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1ER CONGRESO INTERNACIONAL DE BIOCOMBUSTIBLESThe Brazilian Experience on Biofuels
1ER CONGRESO INTERNACIONAL DE BIOCOMBUSTIBLESThe Brazilian Experience on Biofuels
Luthero Winter MoreiraDownstream Area
Luthero Winter MoreiraDownstream Area
Guadalajara, Mayo 07-08, 2008.
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.
DisclosureDisclosure
Fuel Ethanol Program Evolution
Ethanol: 30 Years of Experience Ethanol: 30 Years of Experience
Program for Oil Imports Reduction Environmental Benefits
70’s 80´S 90´S
EthanolProgram
Implanted(BLENDS)
Gasohol and Ethanol Cars(2nd oil shock)
Program of Emission Control
(PROCONVE)
Gasohol and Flex Fuel
Cars
00´S
Cellulosic Ethanol andRenewableHydrogen
Future
Original drivers were energy security and economic attractiveness.
Today environmental benefits are also a consideration.
CNG
ETHANOL
GASOLINE
Source: MME, BEN 2006
120000
140000
1976 1980 1984 1988 1992 1996 2000 2004
In this period, the use of ethanol avoided 644 million tons of CO2 emissions.
1972
Brazil is the 1st country to get benefits from Ethanol
Fuel demand for Otto Cycle Vehicles
160000
10000
80000
60000
40000
20000
0
1000
BE
P
Accumulated effective economy:1 billion boe ~US$ 52 bi
A Brief History of Ethanol and Petrobras by the End of Oil Monopoly
1976/1977- PB creates the first task force to study
blending operations- PB starts to convert storage tanks and
tankers for ethanol transportation
1982/1983- PB broadens its scope and encompasses internal market as well as international market for ethanol- PB concludes coastal shipping plans for ethanol
1986/1997- PB issues over 130 papers and studies on all aspects of ethanol
handling and distribution
- PB consolidates over 40 internal procedures related to ethanol
handling
1978/1979 - PB starts to export fuel ethanol - The first 35 PB service station pumps for ethanol are installed (SP and RJ)
1980/1981- PB develops LUBRAX, the first lubricant for ethanol cars - PB is appointed responsible for handling the safety stock of ethanol - PB starts to produce ethene from ethanol
Source of ethanol production data: UNICASource of Petrobras developments: PETROBRAS
1973OIL SHOCK
A Brief History of Ethanol and Petrobras after the End of Oil Monopoly
1997- Creation of Petrobras Transporte and end of PB monopoly in the Brazilian oil
market
1998/2001-The Brazilian market starts to adjust itself to the new rules
2001- After a steep drop, the price of oil
reaches its lowest point
2003- The first contracts to follow the new rules established in 1997 for ethanol transportation in multi-product pipelines are signed
Source of ethanol production data: UNICASource of Petrobras developments: PETROBRAS
1997/2007- PB issues over 80 new papers and studies on all aspects of ethanol handling and distribution- PB updates its internal procedures related to ethanol handling, including new technologies for Pipeline Integrity Management and dye handling
2005- Petrobras Transporte converts in 15 days 80,000 m3 from diesel to ethanol. It’s the first increase in storage capacity since 2003- Petrobras Transporte has to adapt it’s logistics to handle the dyed ethanol. From that point on, there would be 3 different specifications of ethanol in the PB system
North and Central America
45.8%
Europe
9.2%
South America
32.6%
Asia & Africa
12.4%
Estimated Ethanol Production in 2008 – 70.5 Billion LitersEstimated Ethanol Production in 2008 – 70.5 Billion Liters
Brazil32%
Brazil32%
More than 75% of all ethanol is produced by Brazil and USA. Brazilian exports in 2007: 3.5 billion liters.
World ethanol consumption is 3.7% of gasoline market.
Increasing ethanol blending in the world to 10% would represent 187 billion liters.
Source: F.O.Licht
Nigeria / South Africa
:: Petrobras is providing technical cooperation in logistics and blending know-how.
Japan
:: Recently, Petrobras has incorporated Brazil-Japan Ethanol Inc. (Joint Venture of Petrobras and Japan Alcohol Trading);
:: The Company will import and distribute Brazilian ethanol in Japan;
:: Development of technical and commercial solutions for a reliable, long term supply of ethanol to the Japanese market;
:: Petrobras intends to introduce fuel ethanol into one of the most complex and important energy markets in the world:
• ethanol for power generation,
• fuels distribution in Japanese market,
• logistics for distribution of ethanol in Japan and other Asian markets.
Petrobras Partnerships to Introduce Ethanol as a FuelPetrobras Partnerships to Introduce Ethanol as a Fuel
Research on lignocellulosic ethanol (2nd generation biofuels) using sugar cane bagasse as raw material:
- Pilot plant start-up: 4thQ 2007;
- Demonstration plant start-up: 3rdQ 2010;
- Property of process (patent already issued).
HBIO: process of crude oil refining that uses vegetable oils as raw material to obtain a cleaner diesel oil by hydrogenation of a blend of diesel and vegetable oil.
Biodiesel: research on new raw materials, improvement of industrial process, quality of product, and tests with engines.
R&D - Petrobras Projects on BiofuelsR&D - Petrobras Projects on Biofuels
Stages Petrobras’ Technology Evolution
2006 - 2010 2011 - 2015 2015 - 2020
Large-scale deployment
Technology implementation
(1st industrial unit)
Demonstration (Prototype unit)
R&D
(including pilot plant)
HBIOHBIO
BiodieselBiodiesel
Lignocel. Ethanol Lignocel. Ethanol
Summary – Petrobras’ Technological Roadmaps on BiofuelsSummary – Petrobras’ Technological Roadmaps on Biofuels
Renewable Energy
Business StrategiesBusiness Strategies
2008-2012 Investments
2012 Target
Biodiesel PlantsAvailability of 938,000
m3/year
H-Bio (Bio-Refining)Vegetable oil Processing
1.6 million m³/year
Installed Capacity of Generation of Electric Power
from 365 MW Renewable Sources
Ethanol pipelinesExport of 4.7 million m³/year
of Ethanol
Aeolic Energy
29%
46%
21%
4%
Biofuels
Pipelines and Ethanol Pipelines
Others
H-Bio
US$ 1.5 billion Investments
Total avoided GHG emissions: 3.93 MM tons CO2 equivalent
Ethanol Project Vessel
Solar Energy
Other Sources of Renewable Energy
Petrobras will continue to invest on: development of international markets for ethanol, improvement of Brazilian export infrastructure, and R&D of new production technologies (lignocellulosic process and BTL).
Petrobras’ investment on the development of feasible production technologies of 2nd generation biofuels will assure, in the long-term, the regular supply of renewable fuels, in a fully sustainable manner – regarding economical, environmental and social aspects – along the production chain.
In summary, Petrobras’ investments on biofuels contribute to reduce emissions of fossil fuels, generating environmental benefits and increasing social inclusion by creation of jobs in rural areas.
Final CommentsFinal Comments
Vision 2015Vision 2015
Petrobras will be an integrated energy company with a strong international presence and a leading force in Latin America, working with a focus on profitability and social and environmental responsibility.