“gree iron”

Project
The missing link

1
www.biovale.teiaslive.net
BioVale Haus

jatropha
“ Itabira was only a portrait in the wall”
Poet Drummond
Site where the bio-diesel plant will be set up
 goal

To set up a pool of highly professional

organizations in the private and public sector to
organize the bio-diesel production chain , making
available to the market turn-key projects
(from soil to oil)

9 promoting sustained development and poverty

alleviation, creating opportunities and a new model for
the intensive and extensive use of the energy biomass
potential of Brazil.
 cluster of skills

The strategy of BioVale is to

cluster the various stakeholders of
the biodiesel sector, organizing STRATEGY
and aligning them in
INNOVATION PRODUCTIVITY
entrepreneurial design.

The great opportunity is to cluster

the best capabilities and PERFORMANCE BIODIESEL
ECONOMIC
COMPOSITION
resources to the benefit of the CLUSTER

partners and shareholders of spin-

off companies.
BUSINESS
SPECIALIZATION
CLIMATE

BioVale gathers skills in Brazil COLABORATION

and abroad to make out turn-key

biodiesel projects.
 linking the stakeholders

The main objective of the Hub is to bring capabilities of the various

stakeholders involved in the bio-diesel production chain, both in Brazil
and abroad providing resources and diffusing knowledge to the linked
firms.

The benefits provided through such linkages are of great significance

because of the complimentary capabilities among the stakeholders.

Linkages with foreign organizations can be a great driver of

dynamism and competitiveness to develop effectively and rapidly the
Brazilian bio-diesel program. The foreign firms benefit from linkages
are reduced costs, local market and product intelligence and
enhanced assets (UNCTAD 2001).

MINASINVEST´s interventions, as a leading IPA (Investment promotion

agency) are important to the extent that investors believe that an
enterprising IPA can assist them in identifying and introducing reliable
local firms and organizations with whom the investors can partner.
 Partnership

BIOVALE ENERGIA (shareholders, partners, cooperatives)

FEDERAL UNIVERSITY OF VIÇOSA – BIOAGRO/FUNARBE

EPAMIG – STATE AGRONOMY RESEARCH INSTITUTE

CETEC[SECTES – STATE SCIENCE AND TECHNOLOGY SECRETARIAT

MUNICIPALITY OF ITABIRA

INDESI – SOCIAL AND ECONOMIC INSTITUTE OF ITABIRA

MINASINVEST – DEVELOPMENT ALLIANCE

 goals

research agriculture industry logistics

Documentation, preservation and characterization of J. curcas and

mycorrhizal fungi germplasm
Development of micro-propagated plants inoculated of ROC (Root
Organ Culture) of arbuscular mycorrhizal (AM) fungi and their in vitro
mass inoculum production
Selection of jatropha genotypes with high oil yielding, envisaging the
biodiesel production
Toxicity elimination of the waste for animal feed
 goals

research agriculture industry logistics

9 Plantation of about 40.000 hec of jatropha in the region of Itabira

and surroundings, Minas Gerais, Brazil, out of which 12.000 hec with
family agriculture holders

9The extensive crops will be started as soon as the research and

development project is concluded

9 Partnership[joint arrangements with local feed-stock producers

 goals

research agriculture industry logistics

‰ Construction of an oil extrusion and biodiesel plant with modern trans-

esterification technologies within the area of the technical school of Ipocamo,
Itabira (50 hec) with following capacity]production:

9 Production of about 70.000 ts yearly of biodiesel

9 Production of about 120.000 yearly of cake for animal feed, after the toxicity
elimination process is finalized.

‰ Usage of recycled oil collected by ITAURB, the Itabira selected waste collection
company, a national reference.
 goals

research agriculture industry logistics

‰ storage tanks and transhipment stations in Itabira

‰ Logistic system of CVRD (largest logistic company in Brazil) for the domestic
and international market up to the port; sea transportation (chartering)

The project will meet important sustainability program of CVRD:

‰ “Green railway” program, utilizing B20 in their transportation requirements.

‰ The consumption of diesel in CVRD´s railways in 2006 was 511 million liters

‰ Projected consumption of biodiesel in their railways: 102 million liters p.a.

 Jatropha curcas: the feedstock

Perennial crops of Jatropha Curcas will be used to protect lands that are
vulnerable to erosion and to restore lands degraded by grazing.

The yields of currently used biofuel feedstock vary widely. Jatropha

seeds have proven advantageous in several spheres.
 Jatropha curcas: the feedstock

Jatropha is identified under the physical-chemical platform of

biomass energy conversion route. It is a drought-resistant
perennial, living up to 50 years and growing on marginal soils
(HENNING, 1996).

The remote rural communities of the Brazilian semi-arid in drought

regions will be able to address their energy needs using the
Jatropha resource.

The Jatropha Curcas was especially selected because the plant is

not an invasive species (GÜBITZ ET AL., 1999) and permits the
growth of other plants in its vicinity, so it does not negatively
affect the ecosystem.

The results of the researches developed by EPAMIG, the State

Agriculture R&D entity, in the 80´and the preliminary current
( 2004/2006) results attest the potentiality of the jatropha curcas
cultivation in the semi-arid region
 Jatropha curcas: the feedstock

Jatropha Curcas L. has been widely accepted as a favorite agricultural

solution for all subtropical and tropical locations for sound logical reasons:

9 It is not competing with food grade oils.

9 It’s toxicity is sensed by animals and therefore not foraged on.
9 It is high yielding (1000 liter per hectare).
9 It has a very high oil content of approximately 42%.
9 The oil seed is collected by hand, after dropping to the ground.
9 It requires only moderate rainfall (approx. 600mm only) and can withstand
long periods of drought, but will thrive under higher rainfall.
9 It is a permanent, uncomplicated crop that, once established, can last for
many decades. It therefore eliminates normal annual seedbed preparations
and planting.
9 Due to its low demand on soil fertility, it is ideal to replant marginal lands to
prevent desertification.

9 Given the drought-prone difficulties and lack of rural employment

opportunities, growing a crop for renewable energy provides the
answer for long term prosperity.
 Brazil: a global benchmark in RET

Brazil has ideal conditions for becoming a major world producer of

biodiesel. It has a vast amount of arable land, part of which is not
suitable for food crops but has the right soil and climate for
growing a range of oilseeds.

Biodiesel will make Brazil a global benchmark in the use of

renewable fuels.It first won this position in the 1970s with the
introduction of ethanol made from sugarcane to power automotive
vehicles.

The National Alcohol Program, Proálcool, was the largest fossil

fuel substitution program in the world automotive market. It is
still considered a global example of excellence, and Brazil remains
the largest producer and consumer of fuel alcohol in the world.

The experience Brazil has accumulated through the Proálcool

serves as a strong foundation for implementing the biodiesel
program and maximizing the nation’s competitiveness in a
relatively short period.
 Brazilian domestic market projection

¾ Law 11 097/2005: it sets forth a mandatory use of biodiesel

mixture to diesel, which reflects in the following prospects

2020
2020

20%
12,4
12,4
billions
billions
liters/year
liters/year

Source: MME
 Brazil’s export potential

With the launch of commercial production, Brazil

becomes a potential exporter of biodiesel.

The EU aims to ensure a minimum percentage of

biodiesel in their fuel consumption, but it has limited
land available for growing rapeseed, their main
feedstock , and industrial capacity is insufficient to
meet the stipulated demand.

Despite these constraints, the proportion of renewable

fuels should reach 5.75% by 2010 according to EU
Directive 30, ratified by the European Parliament in May
2003.

Given the limitations for production growth in Europe,

Brazilian biodiesel enjoys an unprecedented opportunity
to have a large market share in the European Continent.
Brazilian energy matrix
 MINAS GERAIS STATE:
The ideal place for investments in Brazil

9 Strategically located in the Southeast region of

Brazil: concentrating 78% of Brazilian consuming
market .
9 18 million people.
9 Territory greater than many European countries.
9 Plenty and cheap land for plantation
9 Third largest South American economy.
9 Excellent infra-structure
9 Abundant energy and modern communication.
9 Modern law on Public-private partnerships,
respecting obligations with investors and partners.
9 Expedient and practical action from Public
Administration
9 Strong competitiveness for new enterprises
9 Highly qualified labor
MINAS GERAIS State stands at a vibrant moment in its development,
introducing entrepreneurial changes, innovation, paradigm shifts, and
openness for new alternatives and investments.
 Possible partners

Countries : Companies :
⊲ Bearing high agricultural ⊲ Having to meet social and
production costs environment responsibilities

⊲ Bearing internal/external ⊲ Bearing environment liabilities

obligations of emission reduction
(Kyoto Protocol and other ⊲ Willing to attract SRI
compromises) and valuing their stock prices

⊲ Bearing scarcity of cultivation ⊲ Bearing intensive need of fuel

lands sources

⊲ Willing strategic alternatives ⊲ Investors in prospective high

for diesel supply return SRI

BIOFUELS: FUTURE´S MOST PROSPECTIVE INVESTMENT

 Biodiesel - a Mutual Profitable Partnership

¾As oil prices and environmental concerns have risen in the past few
years, investment in new biofuel facilities has mushroomed in Brazil.

¾The Brazilian National Program for use and production was

incorporated in the Brazilian energy matrix by Law nr 11.097/2005 .

¾ Most vegetable oil crushing trans-national corporations have

already started investing in biodiesel projects in Brazil

¾The crop area required to produce the blend of initial mandatory

3% of biodiesel will be 1.5 million hectares, equivalent to only 1% of
the total acreage under crops or available for agriculture throughout
Brazil (150 million hectares).

BIOVALE ENERGY: YOUR PARTNER IN BRAZIL – FROM INCEPTION TO CONCEPTION

 “gree iron”
Project
The missing link

gilbertociro@biovale.ind.br 23
www.biovale.teiaslive.net