1. Innovative Technologies from Brazil and the Challenge for South-South Co- operation Jacques Marcovitch Universidade de São Paulo Brazil BAS I C BASIC

2. 1. Technology and GHG Emissions Reduction Sugar and Alcohol Sugarcane bagasse energy co-generation. Biofuels: ethanol production and distribution Steel Industry Pig iron made from coal produced from certified renewable forests Wood carbonization process in charcoal production to mitigate methane emissions Co-generation of energy with recuperation of LDG (Lindz-Donawitz Gas) gas Landfills Biogas generation in landfill to flare and/or to produce electric energy BASI C

3. 2. The sugar and alcohol industry in Brazil (2004/2005) Source: UNICA (2005), JORNALCANA (2005), FNP (2005) and SECEX (2005). BASI C Turn over:USD $18 billions Wealth generation:2.35% of Brazilian GDP Employment generation:3.6 million jobs (direct + indirect) Production: Area: 5.5 million hectares 380 million tons of cane 26.6 million tons of sugar 15.3 billion liters of alcohol Exports: 17 million tons of sugar 2.8 billion liters of alcohol USD $ 3.5 billions Projected Expansion Area : 805,000 hectares 60 million tons of cane 3.6 million tons of sugar (+21%) 2.5 billion liters of alcohol (+27%) USD$ 4.5 billions in five years (2005-2010).

4. 3. Sugarcane bagasse for energy co-generation Technology in use Conventional (cogeneration only during harvest) USD $ 500 to 600 per installed kW Generation of 40 kW/ hour per ton of cane Technology in development Condensation/extraction (co-generation the entire year) US$ 600-800/kW installed 150 kWhour/t of cane (BIG-GT – Biomass Integrated Gasifier/Gas Turbine) US$ 2500/kW installed 517kWhour/ton of cane BASI C

5. 3.1. Co-generation of energy Each ton of cane produces 140 kg of dry bagasse mass, 90% of which is used to produce energy at the mill. Between 1980 and 2000, alcohol and sugar mills in Brazil evolved from a dependency on 40% - 50% purchased electrical energy to self-reliance. Self-reliance, with a balance between bagasse availability and production energy needs and also an excess of up to 10kWh/t of cane. BASI C

6. 3.1. Co-generation of energy (cont) Potential of 4.000 - 5.000 MW for 350 million tons (Mt) of cane per year. Itaipu – 18 turbines – individual capacity of 715 MW Recent situation 184 self-reliant producers of the alcohol and sugar sector In 2003, installed capacity of 1.582 MW, about 10% of the Brazilian thermoelectric capacity In 2002, trade of an excess of 5.360 GWh (1,6% of the consumption of electricity in Brazil) BASI C

7. 4. Ethanol as biofuel Tecnology for Ethanol Production Car Technology using Biofuels BASI C

8. 4.1 Ethanol Production Technology has reached full maturity; Considerable progress made between 70s and 90s Productivity: 4,200 liters per hectare of cane (1980) 6,350 liters per hectare of cane (2003). Efficiency in the conversion of saccharose to ethanol Extraction and treatment of the juice (grinding) Fermentation Distillation Consumption of energy and water. BASI C

9. BASI C 4.2. Car Technology using Biofuels Chronology: 1975: Brazilian energy matrix diversification with alcohol for transports 1988: Flex technology patented in Brazil 2003: Flex Fuel vehicle in Brazil Alcohol + Flex-Fuel vehicle participation in total sales: 2003: 7.0% 2004: 26.0% 2005: 46.6% (through July)

10. 4.3 Projected sales of ethanol and flex- fuel cars Source: ANFAVEA Elaboration: UNICA GasoholAlcoholFlex-fuel BASI C

11. BASI C 5. Green House Gases Emissions Reduction (CO2) Short-term potential of renewable energy generation in Brazil SourcePower (MW)Energy (MWh/ year) Emissions Reduction (tonCO2e/year)* Cane bagasse3,50021,462,00010,731,000 Rice waste2501,971,000985,500 Wood splinter8506,701,4003,350,700 Solar5065,70032,850 Wind3501,226,400613,200 Pulp and Paper1,60012,614,4006,307,200 Small scale hydro1,2005,256,0002,628,000 Total7,80049,296,90024,648,450 Source: Cenbio/CEBDS *Baseline: Generation of electric energy using gas (40% of efficiency).

12. 5.1. Comparative Green House Gases emissions reduction (CO2) Produced renewable energy/ consumed fossil energy relation (ratio kcal/ton of cane) 1,4 corn ethanol in US; 1,9 beet ethanol in Europe; 8,3 cane ethanol in Brazil. Avoided emissions 2,6 - 2,7 t CO2 eq./m3 of anhydrous ethanol (added to gasoline); 1,7 -1,9 t CO2eq./m3 of hydrated ethanol (pure use); Production of 14 million m3 per year, 50:50 anhydrous and hydrated, reduction of 30,1 million tCO2e. BASI C

13. 6. Technology innovation and the South- South cooperation Ethanol production technology: Main countries : India, Thailand etc….. Caribbean countries: reduction of taxes for access to US market South-South technology co-operation Sharing of information regarding the performance of ESTs in developing countries; Joint R&D and demonstration programs; Promoting the development of human resources. Opening markets for ESTs from other developing countries. BASI C

14. 7. Sugar Cane Agriculture in Brazil Mid-South (80% area) crop season: april/ november North-Northeast (20% area) Crop season: sept/march

15. Global Ethanol Production 2004

16. Thank you! Prof. Jacques Marcovitch Universidade de São Paulo E-mail: jmarcovi@usp.br BASIC