Costa Rica. Palm oil for biodiesel 4th FEALAC Working Group on Science and Technology FEALAC Inter- regional Workshop on Clean Fuels and Vehicle Technologies: the Role of Science and Innovation 28 - 30 June 2006, Bangkok

Costa Rica. Palm oil for biodiesel Table of contents World vision Central America status Costa Rica energies profile Costa Rica Palm oil status Biodiesel projections Conclusions

Costa Rica. Palm oil for biodiesel Table of contents World vision

World Vision Earth Summit in Rio de Janeiro (1992). United Nations’ Millenium Development Goals (2000) World Summit for Sustainable Development (2002). International Conference for Renewable Energies (Bonn, 2004) … a commitment to substantially increase with a sense of urgency the global share of renewable energy in the total energy supply. Source: Political Declaration. International Conference for Renewable Energies. Bonn, Germmany. June 4, 2004.

World Vision. Share of Energies (Exxon Mobil Corp’s projection to 2025). Source: Exxon Mobil Corp. 2005. En: El Financiero. Año 10. No. 519. 20 – 26 de junio del 2005. Página 2 de la Sección The Wall Street Journal Americas.

Costa Rica. Palm oil for biodiesel Table of contents World vision Central America status

Oil market shakes Central America up (US$ oil purchased / GDP) Source: Rivera Campos, Roberto. 2005. Lecciones de dos crisis energéticas en Centroamérica. In: ASI Industria. (Asociación Salvadoreña de Industriales). No.322. P23 – 25.

Central America. Cover of electric energy services. Source: CEPAL, 2005. Istmo Centroamericano: Estadísticas del Subsector Eléctrico. LC/MEX/L.678. Naciones Unidas. Ciudad de México.

Costa Rica. Palm oil for biodiesel Table of contents World vision Central America status Costa Rica energies profile

Costa Rica. Energies consumption profile (as % of 122 Costa Rica. Energies consumption profile (as % of 122.870 terajoules by 2004) Source: Costa Rica Department of Energy.

Costa Rica. Oil economic impact. (purchase in millions of US$) Note: 2006 prevision for US$70 / bb. Source: Banco Central de Costa Rica

Costa Rica. Mix of oil products (Total sales forecast by 2006 = 17 Costa Rica. Mix of oil products (Total sales forecast by 2006 = 17.2 millions of barrels) Source: Oil history sales 1980 – 2006. Costa Rica Department of Energy.

Costa Rica. Share of renewable energy on the total electric energy supply. Source: Costa Rica Department of Energy.

Costa Rica. Palm oil for biodiesel Table of contents World vision Central America status Costa Rica energies profile Costa Rica Palm oil status

Costa Rica. Crop ranking (thousand of hectares) Years 1999 2000 2001 2002  2003 2004 2005 Coffee 106,0 113,1 113,4 Rice 64,7 68,4 57,0 47,9 54,0 62,1 53,9 Sugar cane 46,0 47,2 48,0 49,0 49,3 49,2 Palm 37,5 39,8 42,5 43,2 46,6 48,6 Bananas 48,9 44,4 42,2 41,8 42,3 41,1 Pineapple 9,9 12,5 13,0 15,5 16,4 18,0 26,8 Orange 25,2 25,3 26,0 27,0 25,0 Cassava 8,9 5,8 9,6 8,8 7,4 7,0 15,7

Costa Rica. Technology crop profile (as % of growth contribution)

Costa Rica. Palm oil crop surface (thousands of ha)

Costa Rica. Palm oil crop areas Costa Rica’s suitable crop surface: 100 thousand hectares without disturbance rain forest

Costa Rica. Share of palm oil suppliers. (as % of 1792 producers) Source: Alfaro, Marcos. 2006. Palm Oil Program Officer. Costa Rica Department of Agriculture.

Costa Rica. Palm oil trade by market (as % of local production)

Costa Rica. Share of Palm oil extraction capacity (as % of total capacity)

Costa Rica. Performance of Palm Oil Extraction (as % of fresh fruit bunch, FFB) Source: Escobar, Ricardo (2006). ASD Costa Rica (Agricultural Services & Development). PLANTA NARANJO: 3,600 ha

How Costa Rica has acquired high performance in palm oil extraction? First oil palms were introduced in Costa Rica by 1928 Oil palm breeding improvement in Costa Rica since 1968 Certified seeds to international market since 1978 1986

How Costa Rica has acquired high performance in palm oil extraction?

Costa Rica. Palm oil for biodiesel Table of contents World vision Central America status Costa Rica energies profile Costa Rica Palm oil status Biodiesel projections

Costa Rica. Biodiesel Projection 2007 - 2018 (millions of liters). Source: Biodiesel Task Force with data support of long term projection 2004 – 2017.Costa Rica Department of Energy and Costa Rica Agricultural Department.

Costa Rica. Crop surface Projection 2007 - 2018 (thousands of hectares).

Costa Rica. Palm oil for biodiesel Table of contents World vision Central America status Costa Rica energies profile Costa Rica Palm oil status Biodiesel projections Conclusions

Conclusions About conditions of competitiveness: (1) The successful development of the palm oil agro – industry (from 1940 to current date) (2) The availability of crop surfaces in suitable agronomic and weather conditions (almost for starting a B5 Program). (3) The knowledge and the accumulated agro industry experience.

Conclusions The good perspectives for blending biodiesel: (4) The identified opportunity to replace projected demand of fossil fuel import. (5) New surface of palm plantations without rain forest disturbance. (6) The risk diversification to face international oil market: oil fuels and oil palm.

Conclusions Costa Rica Biodiesel Task Force: lessons learned (7) High sensibility to row material cost: CPO CIF Rotterdam is the reference market price (8) There is a long term relationship with the oil food market (9) B100 standard could be designed to give a signal and a role for Biodiesel Program Next step: to design a coherent and functioning institutional framework

Thank you / Muchas gracias. Ing. Orlando Vega Charpentier Bio fuels Program Officer Costa Rica Department of Agriculture Phone: (506) 231 2506 Fax: (506) 296 1652 e - mail: ovega@infoagro.go.cr San Jose, Costa Rica, Central America