1. Jet Biofuels in Brazil Sustainability Challenges 17th ICABR Conference Ravello (Italy): June 18-21, 2013 Marcia A F Dias de Moraes

2. Jet Biofuels in Brazil Sustainability Challenges This research was conducted under the project named “Sustainable Aviation Biofuels for Brazil”, an initiative of Boeing and Embraer companies and São Paulo Research Foundation ( FAPESP) This research aims: -to enhance the discussion on sustainability of biofuels for aviation -to identify the main gaps existent in Brazil to meet the requirements of the most known sustainability criteria - Sustainability assessment has been growing in importance in recent years, in a scenario including the need for reduction of greenhouse gases emissions, the food versus fuel debate, and the increasing need to respect environmental and social standards.

3. Jet Biofuels Aviation Industry Targets (Source: Flight Path to Aviation Biofuels in Brazil: Action Plan, 2013).

4.  The project is a research roadmap to address the challenges of implementing a sustainable aviation biofuels industry in Brazil  Identifying locally available non-fossil fuel sources is critical for continued growth and prosperity of the aviation industry  The roadmapping methodology implemented was aimed at reaching a consensus among the stakeholders on action plan priorities in order to promote the use of sustainable biofuels for aviation.  Stakeholders: airlines, existing aviation fuel producers, potential alternative fuel suppliers, biomass experts, non-governmental organizations, Government agencies Sustainable Aviation Biofuel Brazil (SABB)

5.  We used workshops to stimulate the discussions among the stakeholders  The project team conducted eight workshops across Brazil, including São Paulo, Piracicaba, Rio de Janeiro, Minas Gerais and Brasilia, with active participation of over 30 Stakeholders encompassing the entire prospective aviation biofuel supply chain, including industry, agriculture, government, NGOs and academia.  Roadmap objectives: comprehensive national gap analysis to identify sustainability gaps, existing and needed policies; infrastructure needs; know-how ; feedstocks availability; and technological routes to shift some portion of future biofuels production in Brazil towards aviation needs. Sustainable Aviation Biofuel Brazil Methodology

6. Jet Biofuels Critical Issues  Drop in fuel:  meet all the key properties of petroleum derived aviation fuel (flash point, cold temperature performance, etc)  mixed with conventional jet fuel, can use the same supply infrastructure  do not require adaptation of aircraft or engines  Specification for biofuels drop-in is ASTM D4054.  Must reduce GHG emissions  Food versus fuel debate  Production of jet biofuel fuel can not impact food supply  Environmental impacts  shall control loss of biodiversity, soil erosion, soil and water pollution  Jet biofuels must be compliant with sustainability criteria

7. Why Brazil?  The most promising potential feedstock for jet biofuel are plants that contain sugars, starch, and oil, as well as residues such as lignocellulose, municipal solid wastes, and industrial waste residues  The availability of feedstock for biofuels, in terms of both production quantities and diverse sources, is not a major concern in Brazil (CGEE, 2012; Goldemberg, 2008; Goldemberg et al. 2008; Nassar et al, 2011)  Brazil is the world’s largest producer of sugarcane, second of soybeans and has the lowest production cost of eucalyptus;  Brazil can competitively produce the above listed classes of feedstock, which could be used to start a jet biofuel industry in the country.  In addition, sugarcane and eucalyptus can be produced with a very significant life-cycle reduction of CO 2 ( Source: Flight Path to Aviation Biofuels in Brazil: Action Plan, 2013)

8. Why Brazil?  Most of the crops in Brazil are rain-fed and do not require irrigation  The extensive territory has areas of temperate, subtropical and tropical climates, which allow the cultivation of different crops suitable for jet biofuel  ILUC and food versus fuel are the two most relevant indirect effects raised as concerns in the biofuels debate  Evidence in Brazil shows that the agricultural sector has been able to meet the increasing demand of both food and energy  Brazil uses sugarcane ethanol as fuel for more than 40 years (Source: Flight Path to Aviation Biofuels in Brazil: Action Plan, 2013 )

9. Food versus Fuel Evidences indicate that the expansion of cane ethanol in Brazil have not undermined food production: (i) Brazilian agriculture is facing a process of intensification and efficiency gains with increasing yields in crops and livestock; (ii) there still is a lot of space for intensifying cattle production in Brazil: - Technical yields, such as slaughter age, calves’birth rate and meat produced per hectare are still low in Brazil (iii) Brazil has developed a double-cropping system allowing the integration of soybean and corn in the same year; (iv) the cultivation of oilseeds in rotation with sugarcane is also generating food and fuel in the same systems; (iv) deforestation has been reduced since 2004 (v) the expansion of sugarcane for ethanol, although very strong, has not undermined the expansion of other annual and perennial crops  Therefore, rather than food-versus-fuel, the reality in Brazil shows a food- and-fuel situation; (Source: Flight Path to Aviation Biofuels in Brazil: Action Plan, 2013)

10. Brazilian Legislation Brazilian laws are quite strict to protect natural resources, water and biodiversity  The Brazilian Forest Code is among the most restrictive legislation on land use.  It establishes that at least 25% of the land of individual farms (80% in the Amazon region) be set aside under Legal Reserve in order to preserve natural resources, water sources, biodiversity, and shelter for the native fauna and vegetation.  Stretches of land along water bodies as well as those with slopes above 45° are Areas of Permanent Preservation and cannot legally be cultivated  Labor laws are equally severe

11. Evolution of Production and of Productivity

12. To stimulate the discussions on sustainability aspects with the stakeholders of the broader research project Sustainability Workshop

13. Compliance Technical Impacts Commercial Impacts Financial Impacts How difficult it is to be compliant (or keep being compliant) with each sustainability requirement? The sustainability requirement will have positive or negative impacts on the level of technical risks the economic agents operate today? The sustainability requirement will have positive or negative impacts on the Business Plan the economic agents have today? The sustainability requirement will have positive or negative impacts on the level of commercial risks the economic agents operate today? Methodology

14. Overall Evaluation of the degree of difficulty to meet the requirement

15. Major knowledge gaps identified during SABB Project: Lack of data on costs of jet biofuels since there is no production scale in Brazil Methodologies for calculating ILUC and GHG emissions: widespread discussions on methodologies for calculation and variation across countries and processes Knowledge gaps

16.  Food vs. Fuel debate: in Brazil, there is enough land to produce food and biofuels MAIN POSITIVE ASPECTS Social sphere: high potential for job creation, income generation and regional development Environmental: the main potential positive impact generated by compliance with sustainability requirements is GHG emissions reductions compared to fossil fuels, especially in the sucrose and cellulose groups (although there are still some difficulties with calculations and data for some feedstocks) Final Considerations

17. GAPS FOR COMPLIANCE WITH SUSTAINABILITY REQUIREMENTS (aspects common to all groups of feedstocks) Need for a clear price policy for biofuels (including bio jet fuels) in order to make the production economically sustainable and to attract private investments and to promote the use of jet biofuels Development of protocols and standard methodologies for GHG and ILUC calculations Harmonization of sustainability standards among themselves: minimization of conflicts and promotion of more sustainable operations Final Considerations

18. GAPS FOR COMPLIANCE WITH SUSTAINABILITY REQUIREMENTS  Complying with legality principles of sustainability standards is regarded as challenging, in some circumstances:  Great number of rules and laws, sometimes conflicting and more strict than sustainability requirements;  Lack of knowledge on how to apply some laws/rules;  Adaptation of laws to rural context (especially labor laws)  Legal uncertainty (e.g. recent changes in the forest code)  Scale: small and independent producers have even more difficulty to comply (compliance with sustainability standards requires investments, which may be a barrier for smaller producers)  In addition, the extensive Brazilian territory makes it more difficult to enforce some laws in some states Final Considerations

19. http:www.esalq.usp.br/gemt Thanks for your attention Feel free to contact madfmora@usp.br