1. EUROCLIMA Project Workshop on International Cooperation in the field of bioenergy technology CTBE experience in the field of bioethanol sustainability & perspectives of technological development in Brazil Marcelo Cunha Brazilian Bioethanol Science and Technology Laboratory – CTBE Institute of Economics – University of Campinas – Unicamp Santiago de Chile 12 th March, 2013

2. Contents ● Brazilian Bioethanol Science and Technology Laboratory – CTBE → How CTBE looks for the development of sustainable sugarcane industry ● Introduction to the Brazilian sugarcane industry ● Technological development → Integrated 1 st and 2 nd generation ● Conclusion and final comments

3. Dedicated to basic science and innovation: fundamental initiatives to keep Brazilian leadership in sugarcane/ethanol production cycle. CTBE

4. CTBE - Research Programs

5. CTBE - Agricultural Program - Implementation of no-till farming system: Controlled Traffic Structure (ETC) - Precision Agriculture: increase productivity, reduce fertilizing and environmental impacts - Agricultural management: Nitrogen efficiency use and water stress in different sugarcane genotypes

6. Pilot Plant for Process Development (PPDP) Development of technologies for cellulosic ethanol (estimated raise of 40% in ethanol production). Complex for technological development is open to external groups. Offer “scaling up” to scientific community Deep scientific knowledge to overcome technological challenges pointed out by the productive sector. CTBE - Industrial Program

7. . Assessing impacts of new technologies on the ethanol production cycle. Optimization of processes.. Analysis of priorities for investment planning. Investigating the possibility of using sugarcane biomass as a carbon source CTBE – Technological Assessment Program

8. Sustainability Program -Energy and GHG emission balances -Soil carbon stock changes and emission of N 2 O and CH 4 - Direct and indirect impacts of land use change -Socio-economic impacts -Impact on availability and quality of water resources -Impacts on biodiversity

9. Potential areas for sugarcane production Soil and climate – without irrigation Amazon Rainforest Pantanal Atlantic Forest Other important preservation areas Above 12% slope area High Average Low ( World average ) Inapropriate Brazilian sugarcane industry

10. Sugarcane industry location Brazilian sugarcane industry

11. New mills location Brazilian sugarcane industry

12. Land Use in Brazil (2010) Source: IBGE, 2011 Sugarcane uses 3.4% of available agricultural land in Brazil! Brazil has nearly 40 million hectares of degraded pastures. Brazilian sugarcane industry

13. National Alcohol Program ● Motivation in 1975: reduce oil imports ● Goals: displace 20% of gasoline consumption (reach 10.6 billion L by 1985) ● Cost: US$ 11 billion in subsidies ● Benefit: US$ 55 billion of avoided oil imports ● Main actions (until 1990’s): → Provide low interest loans for distilleries → Parity between sugar and ethanol prices (60 kg sugar = 44 l ethanol) → Parity between sugarcane prices (sugar and ethanol) → Price of ethanol was established as a fraction of gasoline price (65%) ● Recently (after 2000), although global warming is normally quoted as an incentive to use ethanol, the high oil prices is the real motivation behind the recent boom of ethanol demand Brazilian sugarcane industry

14. Ethanol Car in 1925 Brazilian sugarcane industry

15. Brazilian ethanol production and world oil prices (1970 to 2010) Source: Oil prices: BP Brazilian ethanol production: EPE and MAPA

16. Brazil – Registration of new vehicles by fuel type (1975 to 2010) Source: Brazilian automotive industry yearbook 2011

17. Production costs and yields for Brazilian Ethanol Note: US$ related to 2005

18. First Generation Bioethanol Production Burn before harvesting Juice (sucrose) Bagasse Field Trash Energy to the plant (thermal and electric) Sugarcane Others Yeast Bioethanol GI Sugar Polymers Energy source (liquid fuel) Bioelectricity (to the grid) Cattle feed stalks

20. Integrated 1 st and 2 nd Generation Bioethanol Production Simulation and technical parameters Technological development

21. Block Flow Diagram: integrated 1 st and 2 nd generation bioethanol production from sugarcane Technological development

22. ParameterValue Sugarcane bagasse/trash – cellulose content (dry basis) (%)40,7 – hemicellulose content (dry basis) (%)26,5 – lignin content (dry basis) (%)21,9 Steam explosion – hemicellulose conversion (%)70 – cellulose conversion (%)2 Enzymatic hydrolysis – celullose conversion (%)70 – solids loading15 Pentoses biodigestion – COD removal (%)70 Pentoses fermentation to ethanol conversion (%)80 Main Parameters Technological development

23. Investment - 2G plant  US$ 76 million – 462,451 (1) t bagasse/year (US$ 326/t dry bagasse)  Pentoses biodigestion (2) : US$ 13 million for processing 76,000 Nm³ biogas/day Enzyme Costs:  Future technology : US$ 0.05/L cellulosic ethanol (CTBE estimate) (1) Bioetanol combustível: uma oportunidade para o Brasil, CGEE, 2009 (2) Dedini – turn key stillage biodigestion unit Investment calculation as a function of equipment capacity (steam flow, bagasse processed on hydrolysis, biogas produced, etc): Technological development

24. Results: 1G 2G 1.Optimized 1G 2.1G + 2G, pentose biodigestion 3.1G + 2G, pentose fermentation Technological development

25. DRIVING FORCES FOR BIOFUELS USE → High oil prices → Energy security → Climate change awareness → New opportunities for agriculture Conclusion and final comments

26. 1 tonne of cane = 7,400 MJ Products: 85 L ethanol = 1,950 MJ 60 kWh electricity = 216 MJ Total = 2,216 MJ Conversion efficiency= 29.3% How to improve: recover and use trash!

27. ● The success of Brazilian ethanol is related to the concept of a biorefinery; ● Continuous improvement of first generation; ● One of our goals is to develop new technologies that can be integrated to the existing industry; ● Integration of first and second generation – full use of cane fibers and lower investments; ● Improving the integration between the industrial and agricultural sectors is also important for the development of the full concept of a sugarcane biorefinery; ● Embracing the challenge of replacing fossil carbon by green carbon can be profitable; Conclusion and final comments

28. ● Subsidies were important to start the Brazilian ethanol program but competitiveness comes after they are gone; ● Technological development and use is a must for the long term survival; ● Firm and clear government support and policies are necessary to develop new bioenergy technologies; ● The agricultural area is the key point in a biofuel program: breeding, agricultural practices, and environmental, social and economic impacts; ● The long term survival must be carefully evaluated: economics, technology, resources availability (land and water) and public policies. Conclusion and final comments

29. Technological Assessment and Sustainability Programs Team Antonio Bonomi Arnaldo Walter Charles D.F. Jesus Edvaldo R. Morais Elmer C. Rivera Henrique C. J. Franco Isabelle L. M. Sampaio Manoel Régis Leal Marcelo P. Cunha Marcelo Zaiat Marina O.S. Dias Mateus F. Chagas Nathalie Sanghikian Mylene C. A. F. Rezende Otavio Cavalett Paulo Eduardo Mantelatto Rubens Maciel Filho Tassia L. Junqueira Terezinha F. Cardoso Vera L. R. Gouveia

30. Gracias! marcelocunha@eco.unicamp.brwww.bioetanol.org.br