1. BIOETHANOL & FLEX FUEL IN BRAZIL PETROBRAS
FEALAC Inter- regional Workshop on Clean Fuels and Vehicle Technologies
BIOETHANOL & FLEX FUEL
IN BRAZIL
PETROBRAS
Kuniyuki Terabe
Bangkok 28 – 30 June 2006

2. FUTURE OF ETHANOL AS FUEL CONCLUSION
AGENDA
PETROBRAS
ETHANOL PRODUCTION
ETHANOL USE IN BRAZIL
FLEX FUEL CAR
FUTURE OF ETHANOL AS FUEL
CONCLUSION

3. PETROBRAS ATIVITIES

4. Transportation, Trading gas sales: 32 million m3/day
Petrobras in Numbers
proven reserves:
13 billion of boe (SPE)
16 Refineries with a capacity of 2,114 million bpd
oil and gas production:* 2,257 million boe/day
Pipelines: km
6,154 gas stations in Brazil (33% of retail market)
Refine,
Transportation, Trading
E&P
Gross Revenue
US$ 50.6 billion
727 gas stations in Argentina
Petrochemicals
Retailing
ethylene production: 2,4 million ton/year
25% of retail market in Bolívia and 14% in Argentina
Natural Gas
gas sales: 32 million m3/day
*Brazil and abroad

5. Petrobras in the world Exploration & Production RefiningUK
USA – New York
China
Japan
USA - Houston
Iran
Libya
Mexico
Venezuela
Colombia
Nigeria
Ecuador
Tanzania
Singapore
Peru
Angola
Bolivia
BRASIL
Headquarters
Paraguay
Argentina
Chile
Uruguay
Exploration & Production
Refining
Representative Office
Trading
Distribution / Service Stations
Lubricant Sales

6. ETHANOL PRODUCTION

7. Agents of Sugar Cane Industry 50 thousand sugar cane growers
PETROBRAS
ETHANOL PRODUCTION
EVOLUTION OF ETHANOL USES
FLEX FUEL CARS
WORLD PRODUCTION
INFRA-STRUTURES
CONCLUSION
50 thousand sugar cane growers
313 Industrial Plants

8. INTEGRATED SUGAR & ETHANOL PRODUCTION
Process Heat &
Cogeneration
Sugar
Production
Bagasse
Primary
Juice
Sugarcane
Transport,
Cleaning & Crushing
Juice
Treatment
Secondary +
Filter Juice
Hydrous
Ethanol
Fermentation
Distillation
Anhydrous
Ethanol
Dehydration
Molasses
Source: UNICA

9. Production of Sugar and Ethanol　　

10. Main Production Areas in Brazil
61% 3% 8% 1% 2% 5% 4%
Mid South Region -
89% Production
North East Region
11% Production
Source: Brazilian Government

11. Energy Matrix in Brazil - 2005
Hydroelectricity
16.0%
Oil
Charcoal
12,8%
Sugar Cane
13.9%
Others
2.3%
38,4%
Biomass
29.0%
Uranium
Coal
Natural Gas
1.2%
6.4%
9.0%
Source: MME/2005

12. Raw Material Comparison
Relative Production
Cost
Energy out /
Energy in
SUGAR CANE 38
8,3
CORN 64
1,3 - 1,8
WHEAT 92
1,2
SUGAR BEET
100
1,9
All over the world, ethanol is made from four main raw materials: wheat, corn, beet and sugar cane.
This chart shows the advantages of the utilization of sugar cane.

13. ETHANOL USE IN BRAZIL
Thank You !

14. Bioethanol Use in Brazil EVERYETHING STARTED IN 1925
E >10 in 1970’s
FIRST E in 1979
1980’s ENVIRONMENTAL

15. Bioethanol use in Brazil
From 1925 up to 1975:
Different Levels of Anhydrous Ethanol direct Blend in Gasoline
. After PROALCOOL
Fuel Ethanol blended as Additive and used to E100 cars
. In 1980’s : Environmental, leads excluded
In 1993 :
National law- mandatory use of ethanol as Oxygenate, 20% to 25%
In 1997/1998:
Deregulation of fuel ethanol - Free Market
In 2003:
New FFV-Flex Fuel Vehicles , Huge Demand of ethanol in Brazil;
After 2004:
Increasing International demand. Hydrogen production will be ?

16. Ethanol Market-share:
Fuel Consumption in Vehicle in Brazil 2005
Ethanol Market-share:
8,4% + 8,5%  16.9%
Anhydrous
Ethanol
8.5%

17. FUEL ETHANOL USE IN BRAZIL
National / Imported Vehicle E100 or E20/E25 or FFV
National Motocycle or Imported E20/E25
Ethanol is used as a fuel in a wide variety of transportation vehicles. From national to international vehicles, motorcycles and boats, the share of ethanol in the Brazilian´s fuel market is extremely important.
After the launch of the FFV, it is increasing very fast the brazilian internal demand. Only from 2004 to 2005, the internal consumption of ethanol increased more than 1 billion litres because of the FFV fleet.
National or Imported Boats E20/25
Aircraft – E100

19. Bioethanol Use in Brazil EVERYETHING STARTED IN 1925
FLEX FUEL
2003

20. Flex Fuel Vehicles in Brazil
Good conditions to produce ethanol
Ethanol Producers and Government are interested
Consumers want to decide which fuel to use at the gas station
Government and Consumers are aware of pollution and
renewable fuels
Automobile producers are interest in producin

21. Light Vehicles Sales in Brazil

22. Light Vehicles Sales in Brazil

23. FLEX FUEL CAR PERFORMANCE

24. FUTURE OF ETHANOL AS FUEL

25. World Ethanol production
Ethanol global market – 44,0 Billion Liters
North and Central America 36%
Europe 8%
Brazil
３6%
Asia
18%
South America
38%
Ethanol Will be a Commodity ??

26. Sugarcane area in the Brazil
2.Savanah area:24%
*Sugarcane area:0,6%
*Potential area for sugar-
cane expansion:12% of
the total.
Satellite
Image
Sugarcane
1.Total brazilian area :850 M ha
7% for agriculture
(50% for soya and corn)
35% pastures
55% forests
Actual area: 5,5 M ha
Potential:20 times
Source:CTC

27. New Ethanol & Sugar Plants
> Red are new Plants

28. Logistic Exportation in Brazil

29. CONCLUSION

30. Ethanol is Better Alternative
Reduction of the oil dependence
Energy diversification
MTBE and lead replacement
Kyoto Protocol and Carbon Credit Opportunities
There are car technologies to use ethanol
Brazil can increase production with
adequate price

31. The brazilian vocation for biofuels
Equator line
Capricorn Tropic
30o S
Cancer Tropic
30o N

32. I believe
Ethanol is one of the best alternative to match part of World Biofuel needs.
Brazil is prepared to attend part of the needs in a Sustainable way.
The cars markers are fully prepared to adjust the vehicles to biofuel.
Than all together, we can allow a better
World Environmental Conditions by using biofuel.

33. Petrobras General manager Vice President BJE -Tokio
THANK YOU
Kuniyuki Terabe
Petrobras General manager
Vice President BJE -Tokio