Sin ttulo de diapositiva

1
www.abengoabioenergy.com
Abengoa Bioenergy RD
Industrial Biotechnology BioSpain Biotech
2006 20th September 2006
2
Disclaimer
"The present document has been drafted by
Abengoa for its exclusive use as a presentation.
It does not suppose a bid, commitment nor
recommendation, it has not been verified by third
parties and consequently neither the Company nor
its employees assume responsibility for the use
of the information, commentaries and valuations
contained or connected with this document.
3
Table of Contents

• Abengoa overview
• Biofuels definition
• 3. European directive on biofuels
• 4. Review of EU Biofuels directive Public
  consultation eBio view

4

• Abengoa overview

5
Abengoa overview
Abengoa is a technological company that applies
innovative solutions for sustainable development
in infrastructures, environment and energy
sectors. It is present in over 70 countries where
it operates through its five Business Units
Solar, Bioenergy, Environmental Services,
Information Technology, and Industrial
Engineering and Construction.
2005
2004
05 / 04 ()
Sales (M)
2,023.5
1,746.1
15.9
EBITDA (M)
216.9
180.1
20.1
EBITDA / Sales ()
10.7
10.3
6
The Evolution of Abengoa Bioenergy
RD award by the European
Construction of fourth facility in US


Commission ( 4.5 million)
40,000 tons award in France

RD award by the U.S. DOE

83 Ml of ethanol exports

(35.5 million)
contracted in Europe
Construction of third facility

in Spain
RD award by the U.S. DOE

Abengoa identifies the need for

(2.2 million)
a renewable alternative to
First sales of ethanol from

Strategic Investment in O2Diesel
Spain to other EU countries

transport sector energy needs
1995
2002 - 03
1996
-
2001
2005
2004
2006
Construction of the two
Joint venture with Cepsa (Total)


Start-up BCyL (200 Ml)

largest facilities in Europe
for ETBE facility
Expansion of Portales, NM, and BG

Acquisition of High Plains
Expansion of U.S. plants


Corporation in the U.S.
(York, NE and Colwich, KS)
Joint venture with Cepsa (Total)

200,000 t Biodiesel Plant
60,000 tons award in France

200 Ml of ethanol exports

contracted in Europe
7
YTD Production Capacity
Production Facilities in EU
Production Facilities in U.S.
EU (Ml) 2006 2007
2008 Production 540 540
790 Construction 250 250
US (Ml) 2006 2007 2008 Production
420 745 745 Construction
325

La Coruña (190 Ml)

Cartagena (150 Ml)

York, NE (210 Ml)
Portales, NM (115 Ml)




Salamanca (200 Ml)

AB France (250 Ml)
Colwich, KS (95 Ml)
Ravenna, NE (325 Ml)
Abengoa Bioenergy is the only international
producer of ethanol
8
2. Biofuels definition
9

• Environmental protection
• Energy dependence
• New outlets for agriculture

• Biofuels are fuels that derives from biomass
• Liquid biofuels as bioethanol and biodiesel are
  used mainly in self-propulsion vehicles reducing
  contaminant effects and favouring Kioto Protocol
  performance

Definition
Why biofuels?
10
3. European directive on biofuels
11
EU biofuels directive (directive 2003/30)

• Directive sets reference values for the market
  share of biofuels (2 at the end of 2005 and
  5.75 at the end of 2010)
• Member States must set national indicative
  targets

12
4. Review of EU Biofuels directive Public
consultation eBio view
13
EU biofuels directive review

• A progress report on the directive is required by
  the end of 2006
• - Consultation of the interested parties has run
  till 10th July
• Key questions that have been addressed
• Is the objective of promoting biofuels still
  valid?
• Prospects for biofuels market share in 2010
• Targets and support for biofuels
• Certification of biofuels
• Beyond 2010
• Technical issues in the development of biofuels

14
Is the objective of promoting biofuels still
valid?

• It is still valid. The most important reasons
• Security of supply
• Reduction of greenhaouse gas emissions
• Other reasons
• Creation of jobs
• New market opportunities for the agricultural
  sector
• Access to energy in developing countries
• Technology development and technology transfer
• Reduction of non-GHG emissions (ej sulphur)

15
Trends for biofuels market share in 2010

• With existing policies and measures, will
  biofuels achieve a market share of 5,75 in the
  EU by 2010?
• The thinking is the objective will not be
  achieved due to
• Lack of policies to support increase of
  production capacities
• Some Member states have not established the
  objectives or are inferior to 5,75 (UK)
• Main factors favouring bioethanol use in the EU?
• - Global transport fuel
• - Could be produced from virtually any organic
  material
• - Contains more energy than required to produce
  it
• - Reduce GHG emissions and other toxic as
  benzene, particulates
• - Biodegradable in water and soil
• - Economic development in rural areas
• - Development of technologies
• - Savings from avoided oil imports
• - Potential to be used in compression engines
• - A sustainable fuel options combustion
  engines to hydrogen fuel cells

16
Trends for biofuels market share in 2010
Main barriers hampering the development of
biofuels use in the EU? - Opposition of oil
refineries due to a growing dieselisation of EU
fleet which lead to a discriminatory national
road fuel duties - No information to the
general public and failure on public policy
makers to recognize the power of biofuels as
alternative fuels to capture public interest and
support - Inconsistencies between restrictions
in fuel quality directive and targets for
bioethanol - Trade policy - Uncertainities
about the legal framework and duration of public
incentives
17
Targets and support for biofuels
Looking towards 2010, is the present European
system of indicative targets and support for
biofules appropriated or need to be
changed? European system need to be changed in
particular in issues regarding - Compliance
with the 2010 target - The need to promote
public awareness and support - The need to
promote energy crops - Measures to promote
lignocellulosic ethanol Commission proposed
options for supporting biofuels. From eBio point
of view the more advantageous are - The
biofuel directive is amended to require MS to use
biofuel obligations as a tool to national
targets in both petrol and diesel - Sanctions
for no compliance - Targets at least
maintained - Public awareness and promoting
lignocellulosic ethanol Obligation and/or
detaxation
18
Certification of biofuels

• Questions that have been addressed
• Should there be a system to ensure that biofuels
  have been made from raw materials whose
  cultivation meets minimum environmental
  standards?
• Yes, if can be demonstrated that certificates are
  appropriate for
• - demonstrating compliance with these minimum
  environmental
• standards
• - are non discriminatory
• - are robust, non practicable and
  non-bureaucratic
• Should a wider system of certificates be
  introduced, indicating the greenhouse gas and/or
  security of supply impact of each type of
  biofuel?
• Yes, considering the same than previous. Use LCA
  analysis. Special credit to lignocellulosic
  ethanol
• Should there be a scheme to reward
  second-generation biofuels (made with processes
  that can accept a wider range of biomass) within
  biofuel support systems?
• Yes, and in addition EU Commission must make a
  step-up in committing funds to assists the EU
  industry in RD

19
Beyond 2010

• Questions that have been addressed
• Should the EU continue acting in favor of
  biofuels after 2010?
• Yes, if not investments will not be made
• If the EU is to continue acting in favor of
  biofuels after 2010, should this action include
  or exclude the definition of a quantified target
  for biofuels?
• Yes, for the following reasons
• - Move towards a secure and environmentally
  sustainable transport system
• - Clarity to CAP
• - Investments of stakeholders
• - RD performing
• - Auto manufactures investments

20
Beyond 2010 (continued)

• Questions that have been addressed
• Should EU action include the following
  measures (which could be pursued without
• defining a quantified target)
• a) support for research, development and
  dissemination of good practice? Yes
• b) continued Community financial support for the
  supply of biofuels and their
• feedstock? Yes
• c) continued scope for Member States to support
  biofuels through tax
• reductions/exemptions? Yes
• d) the labeling of all fuel to show the
  proportion of biofuel it contains? Yes
• e) a campaign to inform consumers of the
  benefits of biofuels? Yes
• If the EU is to define a quantified target for
  biofuels after 2010, what should it be? What
  year(s) should it relate to - 2015? 2020? Both?
• Targets should be fixed for 2015, 2020 and 2030.
  Values of 10, 15 and 25 respectively
• Terms to be expressed the target for biofuels
  after 2010?