1. World Bioenergy Symposium - WBS2013 Rosângela M. Araujo, Superintendent of Biofuels and Quality of Products September 2013

2. World Bioenergy Symposium - WBS2013 2 Energy Policy and Regulation Energy Matrix ANP´s Regulation Biodiesel Ethanol New Fuels Conclusion Final Remark

3. World Bioenergy Symposium - WBS2013 3. Policy Making. P RESIDENCY OF THE R EPUBLIC N ATIONAL E NERGY P OLICY C OUNCIL – CNPE M INISTRY OF M INES AND E NERGY – MME OIL, NATURAL GAS AND BIOFUELS REGULATED UNDER THE SAME INSTITUTIONAL ENVIRONMENT: ANP

4. World Bioenergy Symposium - WBS2013 4 2021 Share of renewable energy of the energy matrix tends to grow (43% to 46%). Source: The Ten Year Energy developed by the Empresa de Pesquisa Energética (Brazilian Company of Energy Research) - PDE 2021/EPE.

5. World Bioenergy Symposium - WBS2013 5 Source: Oil Natural Gas and Biofuel Statistical Yearbook - ANP (2013). SURFACE TRANSPORT BIOFUELS (mandatory nationwide) ethanol: anhydrous (E25+gasoline); hydrated (E100) for flex and ethanol fleet. biodiesel: B5 to diesel fuel. Brazilian Transport Fuels Demand

6. World Bioenergy Symposium - WBS2013 6  Participation with the Brazilian government in Working Groups (IBF, GBEP, MERCOSUR) to reduce technical barriers and in international forums.  Ethanol and biodiesel: regulation of the production and distribution chain; establishment of specifications, joint actions to mitigate problems.  Standardization: follow-up actions under the technical Committees of ABNT, INMETRO, ASTM, ISO (quality and sustainability). ANP’s Regulation Focusing on Biofuels and New Fuels

7. World Bioenergy Symposium - WBS2013 7 Brazil/USA/EU: “White Paper” for biofuels (ethanol and biodiesel): identification of possible properties and limits to be harmonized: short, mid and long term. (2008) MERCOSUR: biofuels technical standards task force activities. INTERNATIONAL EFFORT FOR HARMONIZING METHODS Brazilian standardized test methods (ABNT) considered for building ISO´s standards; Outgoing work of the SC 7 (Liquid Biofuels) within the TC 28 (Technical Committee on Petroleum Products and Lubricants) of ISO:- ethanol: conductivity and acidity : WG4 - biodiesel: ester content and glycerides: WG5 INTERNATIONAL EFFORT FOR HARMONIZING METHODS Brazilian standardized test methods (ABNT) considered for building ISO´s standards; Outgoing work of the SC 7 (Liquid Biofuels) within the TC 28 (Technical Committee on Petroleum Products and Lubricants) of ISO:- ethanol: conductivity and acidity : WG4 - biodiesel: ester content and glycerides: WG5

8. World Bioenergy Symposium - WBS2013 8 ANP Act 7/2011 – Ethanol Specification

9. World Bioenergy Symposium - WBS2013 9 MAIN ADVANCES: Stringent Water content: 500 ppm (2011), 380 ppm (2012), 350 ppm (2013) and 200 ppm (2014); Upper limits of mono-, di- and triacylglycerols set: 0.8, 0.2 and 0.2 wt %; Cold Filter Plugging Point (CFPP) new regional limits similar to diesel fuel; Revisit 9 properties indicated in White Paper as category B (significant difference) and C (fundamental difference); Updating test methods and adapting quality control to present biodiesel trade. Lab infrastructured was achieved fuel certification, 43 methods accredited by ISO 17025; Promotion of 7 cross checking programs (6 by ANP and 1 by ANP/INMETRO) and proficiency program with INMETRO using Certified Reference Material: 48 labs as participants. Biodiesel Specification Act ANP 14/2012

10. World Bioenergy Symposium - WBS2013 10 Present culture: ANP is present and diagnoses the fuel quality to inhibit fraud. To evaluate systematically the quality of fuels marketed in the country: gasoline, ethanol fuel and diesel fuel B5. To outline problems of non conformities in order to guide ANP´s enforcement actions and also the institutions with which ANP maintains cooperative convenium. To develop human technical capability. To increase technical capacity for fuels analysis and scientific production.GOALS

11. World Bioenergy Symposium - WBS2013 11 20 universities and research centers 240,000 samples/year 34,314 inspected service stations 20 universities and research centers 240,000 samples/year 34,314 inspected service stations

12. World Bioenergy Symposium - WBS2013 B5 in 2010 B3 in 2008 B2 in 2006 Fuels Quality 2000/2013

13. World Bioenergy Symposium - WBS2013 13 Scope: Regulation to authorize biofuels tests by ANP for evaluation of non specified blends or new fuels to be used by captive fleet or in industrial process. # B6 to B20: Resolution ANP 2/2011; # New fuels: Resolution ANP 23/2012. Outcome: Report of test results based on consumption, emissions and performance aspects. Perspective: To build a solid overview of the new fuel and its compatibility with the current scenario of fuel, indicating the pros and cons to the government in order to subsidize biofuels policy.

14. World Bioenergy Symposium - WBS2013 14 Authorizations for experimental and specific uses 2010-2013

15. World Bioenergy Symposium - WBS2013 Estimate of potential investment in R&D and industrialization (2011 to 2014): R$ 3,1billions. Result : approval of 35 business plans (from 25 different companies). 15 Second generation ethanol : signaling based on data from PAISS (BNDES/Finep) Selection of business plans and projects that include development, production and commercialization of new technologies for industrial processing of biomass from sugar cane, in order to allow greater coordination of actions and fostering better integration of financial support instruments available. Three thematic guidelines were made available in the scope of the program:  Second-generation Bioethanol  News products from sugarcane  Gasification, Technology, equipment, process and catalyst;

16. World Bioenergy Symposium - WBS2013 Alternative Aviation Fuel Initiatives Europe (EC) – SWAFEA: Sustainable Way for Alternative Fuels and Energy for Aviation. Actions under the technical Committees of American Society for Testing and Materials (ASTM). Partnership for the development of aviation biofuels signed between the Government of the Federative Republic of Brazil and the Government of the United States of America (March 19 th, 2011). International Aviation Fuels Seminar in Rio de Janeiro, Brazil, on April 16 th and 17 th, 2012. Participation in Roadmap for Sustainable Aviation Biofuels for Brazil.

17. Establishes the specification for aviation alternative fuels containing synthesized hydrocarbons and obligations with regard to control of quality. Aviation alternative fuels specified: FT SPK: from coal and natural gas but the use of biomass as a feedstock is allowed (thus providing a renewable path); HEFA SPK: from fats and oils. Both of these SPKs may be blended up to fifty percent with refined aviation turbine fuel. The final product is fit for purpose and may be used without condition, other than the standard requirements for using any refined fuel either ASTM D1655 or UK(MOD) DefStan 91- 91. ANP ACT n° 20/2013 World Bioenergy Symposium - WBS2013

18. 18 Conclusions ANP considered the report of the White Paper to review existing Brazilian standards for biofuels, when consistent with our domestic market in order to facilitate global trade as well as nourished the development of an infrastructure for lab analysis of biofuels. Domestic biofuels for ground transportation are consolidated, but for export depends on sustainability criteria nonconsensual, especially biodiesel. For aviation biofuel, ANP established a spec in accordance to international tests and works to eliminate barriers in regulation of technical aspects involved in its utilization.

19. World Bioenergy Symposium - WBS2013 19 Support regulatory impact analysis for biodiesel. Bolster the introduction of new fuels on the market with good results for fit for purpose and emissions tests compared to fossil fuels. Uphold the improvement of fuel economy that can be dramaticaly improved in the light- and heavy-duty sectors through the advancement and application of new technology.

20. World Bioenergy Symposium - WBS2013 20 ANP strongly supports the international effort cooperation towards international standards for biofuels as well as the implementation of the biofuel policy by conducting new regulations and improvements to consolidate the share of biofuels in our energy mix. ANP strongly supports the international effort cooperation towards international standards for biofuels as well as the implementation of the biofuel policy by conducting new regulations and improvements to consolidate the share of biofuels in our energy mix.

21. World Bioenergy Symposium - WBS2013 21 Thank you for your attention! Rosângela M. Araujo Superintendent of Biofuels and Quality Product rmoreira@anp.gov.br www.anp.gov.br