World Energy Outlook 2006

Almost all sugar-cane distilleries in Brazil use bagasse-fired steam turbine
systems to provide steam and electricity to meet on site factory needs. Most
biomass cogeneration is in São Paulo State, where 40 sugar mills sell some 1.3
GW of surplus power to the grid. The Brazilian cane industry has the potential
to produce up to 12 GW in the long term – 6 GW in São Paolo State (WADE,
2004). The public authorities are promoting bagasse-based cogeneration to
reduce the country’s reliance on hydropower. Apart from bagasse, only a small
proportion of the large potentially recoverable residues from commercial crops
and forestry are used for energy purposes. Landfill gas is also underdeveloped.
With the exception of bagasse, there is a lack of consistent and reliable data on
biomass resources and their potential as an energy source. This is particularly
the case with regard to residues in the pulp and paper industry, which are
produced in large quantities.
Brazil is a major producer and consumer of biomass-based ethanol for transport.
Biodiesel demand and production are growing steadily. Demand for biofuels
for transport increases rapidly in the Reference Scenario, from 6.4 Mtoe in
2004 to 20.3 Mtoe in 2030 – an average rate of growth of 4.6% per year. Their
share of Brazil’s road transport fuel increases from 14% in 2004 to 23% in
2030 (Figure 16.12). 10
Mtoe
Figure 16.12: Biofuels Penetration in the Road-Transport Sector in Brazil
in the Reference and Alternative Policy Scenarios, 2004-2030
120
100
80
60
40
20
0
3%
83%
14%
2004
4%
79%
17%
2015
Reference
Scenario
Chapter 16 - Focus on Brazil 475
4%
77%
19%
2015
Alternative
Policy
Scenario
Biomass Oil Gas
4%
73%
23%
2030
Reference
Scenario
5%
65%
30%
2030
Alternative
Policy
Scenario
10. See Chapter 14 for an analysis of the global biofuels market and Brazil in this context.
16