ETHANOL BRAZILIAN EXPERIENCE

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ETHANOL BRAZILIAN EXPERIENCE
JULY, 2007
Ministry of Development, Industry and Foreign
Trade
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ETHANOL FUEL BRAZILIAN EXPERIENCE

• Since 1975, by law enforcement World oil
  crisis.
• Brazilian Ethanol Programs

• Mixed with pure gasoline
• (20 a 25) compulsorily use
• Directly and voluntarily used
• in the vehicles ethanol cars (100 ) and
  flexible fuel cars

anhydrous
hydrated
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BRAZILIAN SUGARCANE INDUSTRY PROFILE

• Sugar Cane Area 6.4 Million Hectares (50 to
  ethanol)
• Existing Ethanol Production Capacity 20 Billion
  Liters/Year
• Production (2006) 17.8 Billion Liters
• News Investments Until 2012 US 17 Billion ? New
  Capacity 38 Billion Liters/Year

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BRAZILIAN SUGARCANE INDUSTRY PROFILE
Brazil has land, adequate climate and know how to
expand sugar cane production - Available land for
agriculture expansion (potential) 90 million
hectares (preservation of Amazon Rain Forest)
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BRAZILIAN SUGARCANE INDUSTRY PROFILE

• Sugar Ethanol Production Units Approximately
  330
• Jobs 1 Million
• Sugar Ethanol Production Integration ?
  Flexibility Cost Savings
• Co-generation Of Electricity (Sugar Cane
  Bagasse) 2.609 MW Or 2.5 Of Brazilian
  Electrical Power Generation

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COST OF ETHANOL PRODUCTION
US / Liter
Australia Sugarcane
Thailand Sugarcane
Brazil Sugarcane
EU - Wheat
USA - Corn
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Another Competitive Advantage of Brazilian Ethanol
Energy Balance of Ethanol Production
Wheat
Corn
Beet
Brazil Sugarcane
Energy Output / Energy Input
Source F.O.Licht (in New trends to the ethanol
supply chain in Brazil, Simoes, R.B., Master
Thesis, Universiteit Van Tilburg, Holanda,
Jul-2006)
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BRAZIL ETHANOL PRODUCTION AND EXPORT
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WORLD TENDENCY UTILIZATION OF ETHANOL AS A
VEHICLE FUEL IS MOTIVATED BY THE REASONS
1. SOCIO-ECONOMIC    CONSTANT INCREASE OF OIL
PRICES   NEED FOR NEW JOBS GENERATION  2.
STRATEGIC FOR COUNTRIES WHICH DO NOT HAVE
SUFFICIENCY IN THE PRODUCTION OF OIL OR OTHER
CONVENTIONAL ENERGY SOURCES AND DEPEND ON FOREIGN
ENERGY. 3. ENVIRONMENTAL AND CLIMATIC -
REDUCTION OF URBAN POLLUTION - REDUCTION OF
THE GREENHOUSE EFFECT.
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ETHANOL IN THE WORLD
SOME COUNTRIES WITH ETHANOL-GASOLINE BLEND
PROGRAMS biofuels total
consumption   FFV Flexible Fuel
Vehicles
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Development of Capital Goods for ethanol
production Brazilian leadership

• Equipments for sugar and ethanol plants for
  plantation, harvest and transport of sugar cane

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EQUIPMENT FOR ETHANOL PRODUCTION PLANTS
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FLEXIBLE FUEL VEHICLES

• These vehicles are designed to be supplied with
  gasoline, or ethanol, or any blend of gasoline
  and ethanol.
• The drivers can choose the fuel according to fuel
  availability or price.

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FLEXIBLE FUEL VEHICLES

• Chevrolet, Fiat, Ford, Renault,Volkswagen,
  Peugeot,Citroën, Honda, Toyota and Mitsubishi
  presently offer the Flexible Fuel vehicles in
  domestic Brazilian market.
• Brazilian Flexible Fuel vehicles fleet 3.5
  million

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Flex Fuel System of Electronic Control Engine
Brazilian Technological Vanguard
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Flexible Fuel and gasoline vehicles share on
Brazilian wholesale internal market of light
vehicles.
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NEW USES OF ETHANOL
NEIVA (EMBRAER subsidiary) produces the Ipanema
agriculture plane powered with hydrous ethanol
ETHANOL
Utilization as fuel source in Hydrogen Fuel Cells
(presently in research)