Catalysis Science and Engineering Research Group (GICIC)INCAPE, Santa Fe - Argentina

Next Generation Biofuels and bio-based Chemicals, Trieste, April 2009

“Biofuels in Argentina”

Carlos ApesteguCarlos Apesteguííaa

ARGENTINA: southernmost country in the world

ARGENTINA: southernmost country in the world

South AmericaWhere are we? Where are we?

SANTA FE: SANTA FE: 133,007 km133,007 km22

3 million 3 million peoplepeople

30 million hectares for 30 million hectares for growing food (11% of growing food (11% of territory)territory)90 million hectares: forest100 million hectares: pastures55 million hectares: unsuitable1.5 million hectares: protected

Argentina produces food for 300 million people(population is 40 millions)

Argentina produces food for 300 million people(population is 40 millions)

Soybean areaAREA: 2,760,000 kmAREA: 2,760,000 km22

POPULATION: 40 millionsPOPULATION: 40 millionsRELIGION: mostly catholicLANGUAGE: SpanishGDP(PPP): US$ 13,400 per capitaGDP(nominal): US $6,500 per capitaECONOMIC GROWTH: 8 %/yearILLITERACY: 3%UNEMPLOYMENT: 8 %LIFE EXPECTANCY: 74 years

ENERGY MATRIX OF ARGENTINA

Source: Secretary of Energy (Argentina)

87 % fossil fuels6-9 % renewable sources

Oil41%

Natural Gas45%

Others3%

Mineral Carbon

1%

Wood1%

Nuclear2%

Hydraulic6%

Vegetable residues

1%

Natural gas17%

Naphta17%

Diesel66%

Participation in the use of

transportation fuels

What is ARGENTINA doing in biofuels?

Production for domestic market:600,000 tons biodiesel/year160,000 tons bioethanol/year

…will absorb:8 % of soybean3 % of corn

national outputs

in ARGENTINA, biofuels from what?

Biodiesel from vegetable oil

soybeanalgae

rapeseed ?

jatropha ?

Biodiesel from vegetable oil

soybeansoybeanalgae

rapeseed ?

jatropha ?

Biogas from

residuesresiduescorn

algae

Bioethanol from

sugar canesugar canecorn

sugar beet ?

BIODIESELIN ARGENTINA

rapeseed

soybeanalgaerapeseed

SOYBEANSOYBEANSOYBEANSoybean composition: 20 % oil, 40 % proteins, 35 %

carbohydrates and 5 % ashes

Argentina is the 3rd largest world producer of soybeanPRODUCTION:USA - 86 million tons

Brazil - 59 million tonsArgentina - 47 million tonsChina - 17 million tonsIndia - 8 million tonsParaguay - 6 million tons

Soybean composition: 20 % oil20 % oil, 40 % proteins, 35 % carbohydrates and 5 % ashes

Argentina is the 3rd largest3rd largest world producer of world producer of soybeansoybeanPRODUCTION:USA - 86 million tons

Brazil - 59 million tonsArgentina Argentina -- 47 million tons47 million tonsChina - 17 million tonsIndia - 8 million tonsParaguay - 6 million tons

Population: 300 millions 186 millions 40 millions

Argentina is the largestlargest world exporter of world exporter of soyoilsoyoilArgentina Argentina –– 5.7 million tons 5.7 million tons Brazil Brazil –– 2.3 million tons2.3 million tonsUSA USA –– 0.6 million tons0.6 million tons

NO COMSUMPTION OF SOYBEAN PRODUCTS IN ARGENTINA

NO COMSUMPTION OF SOYBEAN PRODUCTS IN ARGENTINA

SOYBEAN IS THE FIRST

CHOICE FOR BIODIESEL

SOYBEAN IS THE FIRST

CHOICE FOR BIODIESEL

BIODIESEL FROM

Soybean growth in Argentina1970 – 1971 1995 – 1996 2006 – 2007

Source:– Dirección de Agricultura – SAGPyA

59 thousand tons 12.4 million tons 47.5 million tons

SOYBEANSOYBEANSOYBEANLocation and size of vegetable oil milling

facilities

Location and size of vegetable oil milling

facilities

Main location of biodiesel plants is

on Paraná river(ships depart from here to EU or US)

Main location of biodiesel plants is

on Paraná river(ships depart from here to EU or US)

> 200 million tons/year100-200 million tons/year50-100 million tons/year< 50 million tons/year

More than 30 plants

Production (thousands tons)

Europe 5.500

USA 1.500

Argentina 1.200Brazil 900

Rest of the world

900

-----------Total 10.000

Argentina accounts for more than 10 % percent of the biodiesel produced in the world

Biodiesel production worldwide in 2008

Argentina's external sales of biodiesel totaled to 1,104,783 tons in 2008 (319,093 tons in 2007)

Sales of approximately 1,500 million dollars in 2008

Source: Argentine Camera of Renewable Energies

From June 2008, the soybean price dropped about 40 %

RENOVA 240,000 tons/year

DIFEROIL 35,000 tons/year

ECOFUEL 200,000 tons/year (twin plant underway)

RECENTLY INAUGURATED BIODIESEL PLANTS

RECENTLY INAUGURATED BIODIESEL PLANTS

SOYBEANSOYBEANSOYBEAN

Opportunity for small businesses: Farmers account for about 75 %

of diesel consumptionMicro-refineriesSell-local principleLow shipping costs

ALGAEALGAEALGAEAlgae composition: 5-50 % lipids, 40-60% proteins, fibers,

minerals, carbohydrates

Biodiesel from algaeADVANTAGES over soybean:

Algae composition: 55--50 % lipids50 % lipids, 40-60% proteins, fibers, minerals, carbohydrates

Biodiesel from algaeADVANTAGES over soybean:

No soil depredationAlgae capture 4 times more CO2 during

photosynthesisExtremely rapid growth rates

Higher yields: 1 hectare of soybean = 400 oil liters1 hectare of algae = 100,000 oil liters

250Timeshigher

algae oil costs 50 % less than soyoil

BIODIESEL FROM

Main location of algae farms is the coast of Argentine Patagonia

(Province of Chubut)

Main location of algae farms is the coast of Argentine Patagonia

(Province of Chubut)

ALGAEALGAEALGAEProject of algae Project of algae biodiesel plant:biodiesel plant:

Biocombustibles del Chubut (private and

state capitals)

• Purpose: B20 to use in buses for personnel transportation to nearby mines• Production: 5,000 tons/year

• Purpose: B20 to use in buses for personnel transportation to nearby mines• Production: 5,000 tons/year

New locations of algae biodiesel plants are on Paraná river

New locations of algae biodiesel plants are on Paraná river

ALGAEALGAEALGAE OIL FOX S.A: Start up: 200 hectares (2000

conservatories)Investment cost is 4 times as high as

a biodiesel plant but less expensive than land + oil mill

Fresh and seawater algaeFuture: 240,000 tons biodiesel/year to

be exported to the EU2 kg of algae = 1 oil liter + residue

sold as dietary supplement + biogas

OIL FOX S.A: Start up: 200 hectares (2000

conservatories)Investment cost is 4 times as high as

a biodiesel plant but less expensive than land + oil mill

Fresh and seawater algaeFuture: 240,000 tons biodiesel/year to

be exported to the EU2 kg of algae = 1 oil liter + residue

sold as dietary supplement + biogas

RECENT PROJECTS FOR

ALGAE BIODIESEL

PLANTS

RECENT PROJECTS FOR

ALGAE BIODIESEL

PLANTS

RAPESEEDRAPESEEDRAPESEEDRapeseed is almost unknown in ArgentinaLast year production: 10,000 tons Spanish group bought 50,000 hectares (US$ 40 millions)

Rapeseed is almost unknown in ArgentinaLast year production: 10,000 tons Spanish group bought 50,000 hectares (US$ 40 millions)

ADVANTAGES over soybean:

Higher yields 1 hectare of soybean = 400 oil liters1 hectare of rapeseed = 1,200 oil litersrapeseed oil content = 40-45 %

San Luis

Entre Ríos

Buenos Aires

La Paula, Córdoba. Rapeseed farm

BIODIESEL FROM

Vegetable resources with energy application

The project is initially focused on Jatropha valorization:

Agronomical management of Jatropha fields Molecular genetic improvement Jatropha curcas L.Ecofisiology of J. curcas L.Micro propagations developmentOil quality and biodiesel analysis

Project portfolioProject portfolio INSTITUTO NACIONAL DE TECNOLOGIA AGROPECUARIA

JATROPHAJATROPHAJATROPHABIODIESEL FROM

JATROPHAJATROPHAJATROPHAHighly suitableSuitable

Jatropha local April 2008 Jatropha macrocarpa Salta 2008

JATROPHAJATROPHAJATROPHA

BIOETHANOLIN ARGENTINA

sugar canesugar beet maize lignocellulose

SUGAR FEEDSTOCKS STARCHY FEEDSTOCKS CELLULOSIC FEEDSTOCKS

SUGAR CANESUGAR CANESUGAR CANEArgentina is the world's 8th largest sugar exporterRecord sugar output in 2007´s campaign:

production of 2.44 million tons(20 million tons of sugar cane)

Argentina is the world's 8th largest sugar exporterRecord sugar output in 2007´s campaign:

production of 2.44 million tons(20 million tons of sugar cane)

Production of bioethanol for domestic market (fuel):160,000 tons/year in 2010

Present production of bioethanol from sugar caneproduction: 180,000 tons in 2006exports: 40 %

Production of bioethanol for domestic market (fuel):Production of bioethanol for domestic market (fuel):160,000 tons/year in 2010

Present production of bioethanol from sugar caneproduction: 180,000 tons in 2006exports: 40 %

Suitable areas for

sugar cane

BIOETHANOL FROM

SUGAR CANESUGAR CANESUGAR CANE TRADITIONAL PROCESSFrom sugar cane molasses: As a by-

product of sugar production11 liters of ethanol/ton sugar cane

TRADITIONAL PROCESSFrom sugar cane molasses: As a by-

product of sugar production11 liters of ethanol/ton sugar cane11 liters of ethanol/ton sugar cane

Ingenio La Florida, Los Balcanes S.A., Tucumán

Production capacity: 80,000 tons/yearElectricity

Ingenio La Florida, Los Balcanes S.A., Tucumán

Production capacity: Production capacity: 80,000 tons80,000 tons/yearElectricity

SINCE 2006, NEW PROCESSDirectly from sugar cane juices: No

sugar production85 liters of ethanol/ton sugar cane

SINCE 2006, NEW PROCESSDirectly from sugar cane juices: No

sugar production85 liters of ethanol/ton sugar cane85 liters of ethanol/ton sugar cane

versus

ALTERNATIVES TO MEET BIOFUELACT IN 2010:

MaizeMaizeMaize

LignocelluloseLignocelluloseLignocelluloseSugar CaneSugar CaneSugar Cane

85 liters/ton Cost of feedstock: US$ 223/ton ethanolEfficient photosynthesisEasy to extract sugarSevenfold advantage in

energy (energy yielded vs. energy to produce it) compared to corn

400 liters ethanol/ton41% bioethanol, 29% animal food, 30% CO2Cost of feedstock: US$ 445/ton ethanolCost of 100,000 ton plant: US$ 50 millions

Sugar BeetSugar BeetSugar Beet Experimental crops with genetically manipulated seeds

200 liters ethanol/tonCost of 100,000 ton plant: US$ 300 millionsProfitable in 10-15 yearsEnzymes: basic research (genetic engineering)

BIOGASIN ARGENTINA

Manure(“cow power”) Corn

Organic residues

Argentina imports 7,000-9,000 million m3/ year of natural gas Argentina produces 19 million tons of corn/yearArgentina consumes 4 million tons of corn/year (20%)

Plan Maizar 2017: Biogas project to replace imports 5 million tons of corn or sorghum/year to produce biogas

Corn biogas yield1 hectare of corn (whole plant) = 7,000-10,000 m3 biogas

Production of biogas from corn versus biodiesel energetically 10 times more efficient than biodiesel

Argentina imports 7,000-9,000 million m3/ year of natural gas Argentina produces 19 million tons of corn/yearArgentina consumes 4 million tons of corn/year (20%)

Plan Maizar 2017: Biogas project to replace imports 5 million tons of corn or sorghum/year to produce biogas

Corn biogas yield1 hectare of corn (whole plant) = 7,000-10,000 m3 biogas

Production of biogas from corn versus biodiesel energetically 10 times more efficient than biodiesel

CORNCORNCORNCornCorn FermentationFermentation BiogasBiogas

FertilizerFertilizer

Corn biogas to replace natural gas? BIOGAS FROM

BIOREACTOR

Organic residues

In Santa Fe:

Professors of our Chem. Eng. School developed a biodigestor for biogas

OBJECTIVES: Self-supply: 30 kg of biogas/month

Rural or isolated areas

Small communities (schools)

Residue: used as fertilizer in nearby farms

Professors of our Chem. Eng. School developed a biodigestor for biogas

OBJECTIVES: Self-supply: 30 kg of biogas/month

Rural or isolated areas

Small communities (schools)

Residue: used as fertilizer in nearby farms

INTERNATIONAL WORKSHOP IN SANTA FEICS-UNIDO / INCAPE

• Prof. Isabel Di Cosimo

Acknowledgements

Thank you !