Ministry of Agriculture, Livestock and Food Supply - Embrapa

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Executive Summary The purpose of the Brazilian Agroenergy Plan is to organize and develop a technology research, development, innovation, and transfer proposal with a view to guaranteeing the sustainability and competitiveness of the agroenergy chains. The Brazilian Agroenergy Plan also establishes institutional arrangements to structure research: an agroenergy consortium and a new Embrapa unit, Embrapa Agroenergy. It indicates government actions in the international biofuel markets and in other spheres of interest. The proposed strategy is linked to the overall policy of the federal government as set forth in the document Agroenergy Policy Guidelines. The world energy demand is expected to rise 1.7% per annum from 2000 to 2030, when world consumption will have attained 15.3 billion TPE (ton petroleum equivalent) p.a. according to the scenario envisaged by the Institute for International Economics (MUSSA, 2003). Unless the world energy matrix is altered, fossil fuels will account for 90% of the increase. Current proven worldwide petroleum reserves, notwithstanding, total 1.137 trillion barrels, 78% of which are located in OPEC countries, an amount sufficient for approximately 40 years at the current rate of consumption. It is obvious that both reserves and consumption will increase in the intervening period, although the reserves will probably grow at a lower rate. The economic viability of bioenergy necessarily depends on an evaluation of its cost when compared with the price of petroleum. At the present time (2006), tax-free alcohol and gasoline prices even out when the price of an oil barrel fluctuates from US$ 30.00 to US$ 35.00. Since bioenergy technology has yet to attain maturity, it is estimated that parity will only be achieved when the oil barrel price is US$ 60.00 in the case of biodiesel, although a sharp declining trend is foreseen for the near future. The economic conditions are right for the Brazilian agribusiness to include biodiesel as one of its most important components, in addition to ethanol and other types of agroenergy. Social (employment, income, migration flows) and environmental (climate changes, pollution) pressures reinforce and consolidate this position, as well as bring the timetables forward. A series of advantages make Brazil the worldwide leader of energy agriculture and the bioenergy market – the biomarket. The first advantage is 7
the possibility of earmarking new lands to energy farming without having to reduce the food-crop farmed area or impose environmental impacts beyond what is socially acceptable. In addition, in many areas of the country it is possible to harvest several time a year without irrigation. With irrigation, the number of harvests increases considerably. Brazil's location in the tropical and subtropical zones of the world ensures intense solar radiation year-round, the basis of bioenergy production. In addition, the country is blessed with a wide range of climates and an exuberant biodiversity, as well as one-fourth the world's fresh water reserves. Brazil has successfully taken on the leadership in the generation and implementation of modern, tropical agriculture technology and has a robust agro-industry. A striking example is the ethanol production chain, known as the most efficient in the world, driven by a dynamic business sector accustomed to innovating and running risks. Lastly, the consumer market is sufficiently large to enable scale gains that would reinforce competitiveness in the domestic bioenergy business and support its expansion into the world biomarkets. In the short term, the environmental pressures to replace fossil fuels as the main source of energy will drive the demand for agroenergy. Atmospheric CO concentrations in the atmosphere have increased by 31% in the last 250 2 years. Fossil fuel burning and cement production account for 75% of carbon emissions. To establish a framework and provide orientation for public and private actions aiming at the generation of knowledge and technologies that contribute to the sustainable production of energy through agriculture and to the rational use of this renewable energy. Its goal is to ensure the competitiveness of Brazilian agribusiness and support specific public policies, such as social inclusion, regional development and environmental sustainability. The overall purpose of the National Agroenergy Plan on the basis of the facts and premises cited above is: Achieving the overall purpose implies realizing certain specific objectives, in conformity with Brazilian public policies, in order to meet the expectations of society and the demands of the clients: 8
Page 1 and 2: Ministry of Agriculture, Livestock
Page 3 and 4: Translated from the 2nd revised edi
Page 6: Contents Executive Summary ........
Page 11 and 12: systems and the quality of life. Th
Page 13 and 14: solar radiation and plentiful manpo
Page 15 and 16: Figure 2. Agroenergy production cha
Page 17 and 18: a) Achieving sustainability of the
Page 19 and 20: • Funding sources. The RD&I activ
Page 21 and 22: Cross sectional actions There are d
Page 23 and 24: • Developing technologies to add
Page 25 and 26: of the systems and replacing fossil
Page 27 and 28: • Improving the biodiesel quality
Page 29 and 30: Biogas • Developing and evaluatin
Page 31 and 32: Institutional Partnerships in Agroe
Page 33 and 34: Creation of Embrapa Agroenergy The
Page 35 and 36: International Biofuel Market Ethano
Page 37 and 38: The purpose of these actions is to
Page 39 and 40: Supplying lines of credit adequate
Page 42 and 43: Annex 1 Current Energy Scenario and
Page 44 and 45: Figure1. International price of the
Page 46 and 47: Furthermore, the actual possibiliti
Page 48 and 49: This scenario of increasing scarcit
Page 50 and 51: produce approximately 4,500 EJ2 of
Page 52 and 53: Figure. 4. Area of expansion of ene
Page 54 and 55: The considerable variations in CO c
Page 56 and 57: • The growing energy demand and t
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Energy supply and demand scenarios
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The most promising of all fossil so
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Table 9. Evolution of biomass costs
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Agroenergy Production Chains The ag
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Alcohol is used mixed with gasoline
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Consequently, alcohol fueled more t
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in the sugar & alcohol production c
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uncertainties still remain: the cor
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medium-size farmers by favoring sug
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possibility of increasing their ove
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in Brazil's share of the internatio
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it would be necessary to set up at
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those biodiesel plants has been app
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Table 11. Characteristics of oleagi
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until the 17th year, in a productiv
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Using agricultural zoning Embrapa h
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A useful reference is an Abiove stu
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Production and productivity indicat
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the charcoal for the steel industry
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The anaerobic digestion process (bi
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The average electric power consumpt
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sizable proportion of the residue i
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Figure 14. Atmospheric carbon dioxi
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carbon from a CDM project varies fr
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Emission Reduction), a differentiat
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• Direct substitution of fossil f
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SCHERER, E. E.; AITA, C.; BALDISSER
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DOHANYOS, M.; KOSOVA, B.; ZABRANSKA
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ROBIN, P.; SOULOUMIAC, D.; OLIVEIRA
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Printing and finishing Embrapa Publ
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Ministry of Agriculture, Livestock and Food Supply - Embrapa

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