World Energy Outlook 2006

Biodiesel
Brazil is actively pursuing a domestic biodiesel market. The government
expects that by December 2006 about 3 500 stations will market biodiesel.
Biodiesel distribution and marketing are carried out by Petrobras
Distribuidora, The company has already invested nearly $9.3 million to
adapt its facilities to biodiesel. The logistics of the biodiesel market differ
from those of fossil diesel. Refineries that produce conventional oil are
located closer to distribution centres, while biodiesel production centres are
in the interior of the country.
Fuel distributors will be required to market biodiesel as of 2008. The
government plans to give priority to the programme in less developed regions,
such as the northeast and the Jequitinhonha Valley. Targets under Probiodiesel,
the Brazilian Programme of Technological Development for Biodiesel, call for
2% of diesel from biodiesel by 2008 and 5% by 2013. The government
estimates that the planted area that would be required to supply the 2%
biodiesel/diesel fuel mix would be 1 500 million hectares. Biodiesel is supplied
to distributors by rural producers through auctions promoted by the National
Petroleum Agency (ANP).
Power and Heat
In 2004, electricity generation in Brazil was 387 TWh. Brazil’s share of
hydropower in the electricity mix, at 83%, is one of the highest in the world.
In terms of the volume of electricity output from hydro, Brazil ranked third in
the world in 2004 behind China and Canada. Natural gas, however, has made
an increasing contribution over the past several years. Its share reached 5% in
2004, up from less than 1% in 1999. Oil, coal, nuclear and non-hydro
renewables each contributed about 3% in 2004. Use of biomass, mostly in the
form of bagasse, accounts for the majority of non-hydro renewable energybased
generation.
Brazil is expected to develop further its large hydropower resources. The
Belo-Monte hydropower plant will be the first large dam built in Amazonas
since the Tucuruí dam was completed in the early 1980s. The capacity of the
Belo-Monte plant has not been confirmed, because of concerns about the
environmental impacts associated with reservoir size. A decision is expected at
the end of 2006. Other dams upstream from Belo-Monte are also being
considered. Dams are also planned for the Madeira River in Rondonia State in
the west. All of these plants are located far from centres of demand and will
require significant investment in new transmission lines to connect them to the
national integrated grid.
Chapter 16 - Focus on Brazil 479
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