Porto, September 23rd , 2009

Ricardo Cavalcanti FurtadoEnvironmental Planning ManagerEmpresa de Pesquisa Energética

Biomass for Energy Generation:Environmental Issues

Government-owned company, linked to the Ministry of Mines and Energy, instituted by Law n° 10.847/2004

EPE has been created to develop studies and research to support the energy sector planning in the areas of electric

energy, oil and natural gas and its derivatives, mineral coal, renewable energy sources and energy efficiency

Empresa de Pesquisa Energética

Energy Planning in Brazil

HIGH PROPORTION OF HYDRO POWER

LONG TRANSMISSION LINES

INTENSIVE CAPITAL

LONG TERM INVESTMENTS

HIGH UNCERTANTIES

MULTIPLE OBJECTIVES

COMPLEMENTARY GENERATION

SEASONALITY

ENVIRONMENTAL ISSUES

Brazilian Power Sector Planning

RISK ANALYSIS

FAIR TARIFF

DIVERSITY

INTEGRATION

ENERGY SECURITY

NATIONAL ENERGY PLANNING

NATIONAL ENERGY OUTLOOK

TEN YEAR ENERGY PLANNING

AUCTIONS

Crude Oil and Natural Gas

Electric PowerTransmission

Biofuels

PROGRAMMING VIEW

SHORT AND MEDIUM TERM STUDIES (10 YEARS AHEAD)

STRATEGY VIEW

LONG TERM STUDIES (30 YEARS AHEAD)

Planning Process

Scenarios for Electricity 2030 (GW)

Source: PNE 2030

142,1

224,9

100,5

0

50

100

150

200

250

2005 2015 2030

Year

GW

Imports + Other

Biomass

Wind

Small Hydro

Other thermal

Coal

Nuclear

Natural Gas

Large Hydro PowerPlants

7,9 GW

Source: National Energy Balance. EPE, 2008

Energy in Brazil – Energy Sources Share

Renewable Sources Share

54%

93%

87%13%

7%

46%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Brazil

OECD

World

RenewableNon-renewable

Wood & charcoal; 11,99%

Sugarcane products; 15,88%

Hydro; 14,89%

Nuclear; 1,40%

Coal & coal derived; 5,99%

Natural Gas; 9,29%

Oil & oil derived; 37,36%

Energy in Brazil – Energy Sources Share

Source: National Energy Balance. EPE, 2008

EthanolBagasseStraw

Cogeneration

Vehicles

Charcoal consumed by blast furnaces.

Transmission LinesPlanned System - 2017Existing System

Biomass

Biomass participation in the Energy Auctions

Auction Plants Power (MW)2005 25 766A3/2006 25 967A5/2006 29 1.104Alternative Sources/2007 12 214A3/2007 50 1.555A5/2007 34 1.046Biomass/2008 (Stock Auction) 31 2.379A5/2008 1 114Total 207 8.144

Environmental Information Analysis in the auctions Plant carachteristics Environmental licensing Reserve of water availability and allowance for water use

The ethanol/sugar production chainMain environmental issues:

• Food competition• Land use on expansion areas• Energy Balance• Emissions• Solid waste• Liquid effluents• Water consumption• Employment (quantity and quality)

7,9

14,684,8

0

2

4

6

8

10

12

14

16

106 h

a

0102030405060708090

(%)

Crop area (M ha) Acumulated expansion (%)

Crop area (M ha) 7,9 8,7 9,6 10,3 11,2 12,1 12,8 13,5 14,1 14,6Acumulated expansion(%)

15,8 21,5 30,4 41,8 53,2 62,0 70,9 78,5 84,8

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Source: EPE, 2009 based on Municipal Agricultural Research developed by IBGE

2006

Current sugarcane production and expansion perspectives

Year  Sugarcane(Mt)

Ethanol (billion liters)

2008 553 25,62009 609 29,22010 677 33,52011 734 37,62012 800 42,32013 871 47,32014 929 51,52015 985 55,72016 1029 59,82017 1075 63,9

Source: EPE, 2009. PDE 2008-2017

Amazon

Pantanal

SavannaSavanna

Caatinga

Mata Atlântica

Where to expand?• The National Agro-ecologic Zoning for the sugarcane

harvesting will determine the most appropriate areas to expand the sugarcane production (under development – coming soon)– Soil– Climate– Environmental issues

• It’s desirable that the expansion occurs on non-productive areas such as abandoned crop fields and pasture areas Suitable

Suitable with environmental limitations Suitable with environmental constraints inappropriate

Agroecologic zoning - SP

Example of Agro-ecologic zoning developed by SP

Government (2008)

Food competition• Sugarcane can be considered as food (sugar and other

products), but the part destined to ethanol (today ~55%) doesn’t compete with this purpose

• Some studies, based on satellite images (INPE/CANASAT), have found that the last 4-year expansion occurred mainly over consolidated agriculture and pasture areas

• The production of grains, rice, fruits (almost all) has increased continuously

• Currently, in Brazil, the sugarcane production does not influence food prices

Energy Balance• The sugarcane provides one of the best energy balances

in bioethanol production

• The energy “Output/Input” index in the Life Cycle of sugarcane ethanol = 8.1

• The bagasse cogeneration ensures the energy self-consumption (power, mechanic and thermal) in the sugar/ethanol plants

• The power excess can be sold for the Interconnected System (Auctions)

Emissions• In Brazil, ethanol (hydrous and anhydrous) substitutes a great

amount of gasoline consumption. As consequence, even taking into account the life cycle emissions, it avoids significant amounts of GHG emissions

• The use of biofuels also reduces the SOx, particulates and VOC emissions in comparison with gasoline and diesel

• Burning of straw in the field facilitates manual sugarcane picking. However it causes air pollution in regional scale. Recently, regulation and agreements established a schedule to gradually mechanize the sugarcane picking

Solid waste and liquid effluents• Technically, bagasse and straw

can be considered as co-products of sugarcane production. Both can be used for energetic purposes. Part of the straw is also important for soil covering

• Currently, the vinasse (high BOD) produced is destined for the crop field in substitution for chemical fertilizers

• Other liquid effluents can be easily treated before released on the environment (rivers) Vinasse sluice - Usina Coruripe, AL

Water consumption• In Brazil, sugarcane harvesting doesn’t need irrigation.

However, sugar/ethanol plants consume a significant amount of water

• Water consumption – national average– 1997 = 5,0 m3/t.sc– 2008 = 1,0 – 2,0 m3/t.sc– New plants = 0,7 – 1,0 m3/t.sc

• The water availability is one of the main environmental constraints on new plants licensing, particularly in the Southeast Region

Sugarcane washing

Employment• Sugarcane manual picking requires a large number of workers.

However, these jobs are extremely exhaustive and don’t need schooling (low level income)

• The mechanization of sugarcane picking will certainly reduce the number of jobs in the sector. This will create better jobs (salubrity and level income)

• There are public and private initiatives to regulate the social aspects of sugar/ethanol production chain in Brazil. An international certification system could guarantee this goal

Sugarcane manual picking

Other possibilites in bioenergy• Increasing the use of sugarcane straw in cogeneration

• Ligno-celullose ethanol

• Biogas from sewage, biodigestors and landfill

• Woodchips and agriculture scraps

• Elephantgrass for power generation

• Biodiesel from vegetable oil, fried oil, tallow and other fatty raw materials

Conclusions• Today, biomass power generation in Brazil uses

predominantly sugarcane bagasse as fuel

• Sugarcane bagasse is a co-product of the sugar/ethanol production chain

• Currently, the sugarcane production does not affect the Amazon and Pantanal areas

• The expansion areas for sugarcane will be determined by the Agro-ecologic Zoning

• The Brazilian sugar/ethanol industry manages the most of environmental impacts in sugar/ethanol production chain

• Brazil has a great potential on bioenergy

Ricardo Cavalcanti FurtadoSuperintendente de Meio Ambiente

Empresa de Pesquisa Energética

www.epe.gov.br