7. METHODOLOGY Phase I 7 months Phase II 8 - 12 months Phase III 1.5 - 3 years Recommendation of projects Production capacity Suitability for growing bio-fuels and food

8. METHODOLOGY Phase I – Feasability Study RESULTS Investments Regulations Infrastructure Environmental issues Suitability for bio- fuels and food BUSINESS MODEL Potential feedstock Production layouts Production Capacity Recommendation ZONINGS Agro-climatic Edapho-climatic Environmental Social Phase II

9. METHODOLOGY Phase I – Zonings Agro-climatic zoningEdaphic zoning Social zoning Environmental zoning rainfall average temperature water deficit evapotranspiration wetlandssoils reliefrivers protected areasbiodiversityadministrative regionspopulation ethnicsanthropic areas

10. METHODOLOGY Use and coverage Location of the areas of interest for field work Agricultural zoning Land use analysis

11. METHODOLOGY Forest areasFamily farming areasBusiness farming areas CHECKING ON SITE Use and coverage Agricultural zoning

12. METHODOLOGY Potential areas validation Degraded areas Suitable soils Rural diagnoses Infrastructure analysis Use and coverage Relief Existing projects Existing crops Cultivation forms Field evidence Use and coverageAgricultural zoning

13. METHODOLOGY Phase II – Data Book INVESTORS Private Sector Project COMPILATION Sustainable projects Involvement of stakeholders Data Book Road Show SUB-PROJECTS Transfer of know- how & technology Agriculture Industrial Social Financial Environmental Legal & Regulatory Marketing Phase III

14. Conclusion: Production of biofuels and food is the way forward to secure the development of the countries of the tropical belt TROPICAL BELT  Building of production chains which include the small rural producers  Generation of income: access to health and education  Training of labor force  Preservation of the environment (advanced techniques)  Reduce outside dependence and expand energy security  Creation of strong currency (exports)

15. PROJECTS MozambiqueLiberia Nacala Corridor (Mozambique) Sugar Cane 2,000,000 t Elephant Grass 48,000 t Integrated production of rice, maize, soya and cotton Products Ethanol Electrical Energy Sugar Bio-fuels Electrical Energy Grains Fiber Bran Vegetable Oil Project Area (ha)22,9491,900300,000 Annual Production Sugar: 198,000 t Ethanol: 50,000,000 l Energy: 127,000 MWh Supplies a city of 200 thousand inhabitants Energy: 41,400 MWh Supplies a city of 65 thousand inhabitants Grains: 900,000 t Feather (cotton): 77,000 t Raw oil: 19,000 t Bran: 87,500 t Duration (years)204525 Investment (US$ th)471.412.7686.7 Operational (US$ th)27.71.2861.5 TIR22%17,80%21.40% VPL331.111796.8 Empregos650753,000 Agro-industry produces a demand for materials from other sectors: machinery and equipment, tractors, agricultural tools, silos, agricultural defenses, fertilizers etc.

16. THANK YOU! Antônio Carlos Kfouri Aidar antonio.aidar@fgv.br