1. Foundation for Agricultural Innovation (FIA) MINISTRY OF AGRICULTURE Fernando Bas M. Executive Director Promoting the Use of Bioenergy in the agricultural and forestry sector

2. FIA is an Agency of the Ministry of Agriculture whose goal is: To promote and encourage innovation in the agri-food and forestry sectors, by strengthening their capabilities and entrepreneurship, to enhance sustainable development and competitiveness of Chile.

3. Foresee topics of upcoming importance and guide innovation Support producers, companies, and R & D centers in the implementation of innovation Create learning instances, and provide tools and motivation for innovation Propagate innovation strategies and practical applications that increase competitiveness FIA Seizes, Sows, Grows, and Disseminates Innovation for the Competitiveness of Chile =

4. Areas of Innovation Initiatives Reduces the risk of innovating in strategic areas: supports producers, companies, and R & D centres, in developing prototypes and new inputs that can be replicated by others

5. FIA Instruments to promote Innovation Innovation Projects Innovation Roundtrips Innovation Consulting National Innovation Programs

7. Objectives Increase the competitiveness of the agro- forestry sector through reductions in energy costs Promote and propagate the adoption Non- Conventional Renewable Energy technologies in agriculture production processes

8. Time, Generated Value Adaptation of New Technologies 2 years Curve of Technology Adoption vs. Time Early Adopters

9. Copy Adaptation Improvement Invention No Innovation Major Innovation Adaptation: Modify or adjust an existing product, process, service, or management strategy to local conditions, in order to obtain an expected outcome Degrees of Innovation in FIA

10. If profitable: Why these technologies have not been adopted already? Large fear of risk present in small and micro producers (99,5 % of agriculture producers)* Relatively high initial investment and long-term return on investment Misinformation, or no information, regarding the implementation and operation of new technologies Producers’ wary way of thinking: seeing is believing *Agriculture Census, 2007

11. Positive external outcomes: Source of reliable self-supply for the long term, what contributes to diversification and reduces vulnerability and reliance on foreign supply sources Stable, independent production costs independent of oil costs Reduced environmental impact (local and global) than traditional projects. Better acceptance in the community and in the society at large Contribute to sustainable development of geographically isolated areas

12. TYPES OF TECHNOLOGIES BIOGAS SOLAR PANNELS EOLIC BIOMASS

13. Characteristics of the Instrument Maximum amount of subsidy: M $100 (US$ 200.000) Beneficiaries and percentage of contribution: Applicant’s annual sales (in UF)* Maximum of FIA co-financing of the total cost proposed Above 100.000 UF20% Between 25.001 and 100.000 UF40% Up to 25.000 UF65% 1 UF approx. US$ 50

14. Characteristics of the Instrument Evaluation criteria: CriteriaRelative weight Innovative merit10% Economic investment of executor20% Cost efficiency25% Economic evaluation of the project 20% Technical quality of the project proposal 25%

15. Funds Review of applications Submission of applications Allocation of funds EXECUTION THROUGH FIA

16. Demonstrations of Prototype Biogas Plants for Small and Medium-sized Agriculture Producers

17. feed fertilizer manure waste tank Biogas Projects Traditional use of manure as fertilizer in agricultural systems

18. feed fertilizer manure energy light heat anaerobic digestor Biogas Projects

19. General Objective The objective of this project is to bring about the construction and start-up of 6 prototype plants that demonstrate the utilization of organic agriculture waste, and allow for the replacement of fossil fuels, considering: -Self management -Eco-friendly -Sustainable -Profitable -Model for demonstrations

20. Technical Objetives For the anaerobic digestion process to be efficient, the biodigestors must run at a constant temperature of 35 ° C The system uses on average 50% of the produced biogas to maintain temperature (self-consumption) The biodigestor, in order to maintain a constant inside temperature must furnished with a good agitation system The agitation is obtained by a recirculation system powered by an electric pump

21. Prototype

22. Reactor bin 40 m 3 Solar heating panels Retrofeed tank Heater powered by biogas

23. Collective Prototype

24. Reactor bins 40 m 3 Solar heating panels Retrofeed tank Heater powered by biogas

25. Propane Substitution kg propane equivalent3.380 $/kg propane429 Propane market cost (kg)967 Project: Individual Biogas Plant Annual CostsCL $ Investment (depr. 10 years)-1.500.000(Investment 15 millions) Labor-600.000(2 hours/day) Subtotal-2.100.000 Fertilizer savings+650.000(4 kg N/m 3 -price urea) TOTAL-1.450.000

26. Expected Outcome Reduction in Energy costs Production of biofertilizers Reduction in manure odors and pathogens Replacement of fossil fuels => greater environmental sustainability Prototype replication Increased competitivenessIncreased competitiveness

27. Gracias!