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features of envisaged area
Total semi-arid area: 1.219.021,50 Km2, equivalent to about 1/5 of Brazil – comprising ten States Maranhão, Piauí, Ceará, Rio Grande do Norte, Paraíba, Pernambuco, Alagoas, Sergipee Bahia and Minas Gerais. Population: 1/3 of Brazil (55 million)
the social energy biosphere
When the National Program of Biodiesel Production and Use (PNPB) was started, on December 2004, the Brazilian Government relied on the growing demand for fuels from renewable sources and on the Brazilian potential to meet a substantial part of these needs, thus generating jobs and income in rural areas, reducing regional inequalities and contributing to foreign-exchange savings and to the improvement of environmental conditions.
There is widespread consensus among energy specialists as to the fact that the Twenty-first Century will be the age of agroenergy.
Energy security must be achieved through the increasing production of fuels from renewable sources and this achievement requires compliance with the requirements of sustainability in the broad sense : environmental, economic, social and technological sustainability.
Brazil has very favorable land and climate conditions and has a great potential for the production of biomass. The addition of value to agricultural activities represents a major comparative advantage to Brazil. Biodiesel is one of these possibilities, perhaps the most promising one, as the demand for energy will increase as the world economy keeps growing.
In this context, the Government has foreseen the possibility – which is actually taking place – of engaging small farmers and producers of the Brazilian poorest regions in the biodiesel value chain. This is being achieved by means of tax incentives granted to firms that purchase oil-producing crops grown by small farmers. With the purpose of creating market for biodiesel, a law that requires the addition of biodiesel into diesel (2% in 2008, and 5% in 2013) was sanctioned.
the rationale
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 Proálcoolserves as a strong foundation for implementing the biodiesel program and maximizing the nation’s competitiveness in a relatively short period.
Brazil: a global benchmark in RET
The National Program for use and production of Biodiesel (PNPB) is a Federal Inter-ministerial program with an aim at implementing a sustained development , technically and economically. The emphasis lies on social inclusion and employment/wealth generation and regional development
Brazilian National Plan for Biodiesel
Brazilian energy matrix
“Minas Gerais State is getting ready to become the best State in Brazil
To live and invest.”
“ECONOMIC DEVEVELOPMENT SECRETARIAT OF MINAS GERAIS
BRAZIL AND MINAS GERAIS STATE:THE BEST PLACE FOR INVESTMENT IN BIO-DIESEL PRODUCTION
MINAS GERAIS STATE: The ideal place for investments in Brazil
� Strategically located in the Southeast region of Brazil: concentrating 78% of Brazilian consuming market .
� 18 million people.� Territory greater than many European countries.� Third largest South American economy.� Excellent infra-structure� Abundant energy and modern communication.� Modern law on on Public-private partnerships,
respecting obligations with investors and partners.� Expedient and practical action from Public
Administration� Strong competitiveness for new enterprises� 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.
The State governments is enacting consistent, long-range, and coordinated policies that are informed by broad stakeholder participation. Policy priorities in Minas Gerais State include:
Strengthen the Market: creating an enabling environment based on sound fiscal policy and support for private investment, infrastructure development and the building of transportation fleets that are able to use the new fuels.
Speed the Transition to Next-Generation Technologies: expediting the transition to the next generation of feedstock and technologies that will enable increasedproduction at lower cost, while reducing negative environmental impacts.
Protect the Resource Base. Maintaining soil productivity, water quality, and other ecosystem services . National and international environmental sustainability principles and certification systems are important for protecting resources .
Encourage Broad Rural Economic Benefits. Fiscal and land use policies to determine how broadly the economic revenues from biofuels are spread and how they will shape rural economies.
Facilitate Sustainable International Biofuel Trade. Continued rapid growth of biofuelswill require the development of a true international market in these fuels
Efficiency and Improved Public Transport. BThe State biodiesel program is being bedeveloped within the context of a broad transformation of the transport sector aimed at improving transport efficiency.
The State efforts
�To achieve the efficacy, the State Government has undertaken a profound revision of its structure, including the empowerment of the development apparatus with a greater flexibility in order to meet the new demands of society .
� The objective of Minas Gerais development is now to increase the competitiveness of its economic base, targeting the state’s supply chains, transforming comparative advantages into real and enduring competitive advantages.
�The new model gives primacy to the private initiative in determining the economy’s dynamic as well as an elevated degree of openness to the international economy.
�Bio-fuels production has driven special attention from the State Government and counts with its full support and incentives.
The State program for bio-fuels
The program, set forth in Law no. 15.976/2006 has the following goals:
Research and technology development; Technology transfer to the private sector; Job posts creating and improvement of income distribution; Reduction of fossil diesel imports; Reduction of gas pollution emission; Development of Feed-stock production
Targets up to 2007/2008 :
250.000 hectares crop plantation for production of B2 (blend 2% ), reaching 625.000 he for production of B5 in 2013;
Direct income generation to 100.000 families, corresponding to about 500.000 job posts up to 2007.
entrepreneurial state culture
While the State of Minas Gerais assumes the role of promoter and clearinghouse for investments, it is aligned with the basic concepts of this new entrepreneurial culture, which involve:
�overcoming bureaucratic bottlenecks that inhibit the adoption ofperformance-based models of administration.�breaking with inefficient management practices.�decentralizing and opening spaces for the involvement of the private sector in the process of development.� managing fiscal crises, economic externalities, and imperfect contracts in the credit markets;� overcoming the lack of clear regulatory function and market credibility;Long-term planning: research and development programs that present an investment portfolio for attracting private sector interest;�Coordination among diverse state development institutions: cutting waste, redundancies, and loss of efficiency.
“ Minas Gerais is presents Brazil with a new management model. We have left behind that motto that Public services are inefficient by nature. We are bringing private sector management methods , with performance evaluation and the establishment of goals to be achieved. “ ( Governor Aecio Neves)
economic overvieweconomic overview
� TRANSPORT: Largest road network in Brazil: 265.000 km and extensive railroad network: 5.080km, ensuring logistics and easy flow of products to main domestic markets and export through the most efficient ports in Brazil: Santos, Rio de Janeiro/Sepetiba and Vitoria.� COMMUNICATION: 5 million fixed lines and 3 million mobile lines. Fiber optic links connect the State to the main cities. Minas is reckoned as the benchmark for the quality of its communications.� EDUCATION: the high quality of Minas education has been internationally recognized by UNICEF: 15.945 basic education schools, largest university network.� ENERGY: one third production of the electric power of the country.� INVESTMENTS: it has been committed in excess of USD 100 billion in the next couple of years� LEGISLATION: modern and operative regarding investments, keeping up with international standards. Minas people and institutions are traditional in their respect and commitment to agreements and contracts
� INTERNATIONAL AIRPORT: The Tancredo Neves Airport is one of the most modern airports and, for its exceptional conditions, has been chosen to be the first one to set up the industrial park concept, creating a free trade zone for import, export and distribution. Companies will receive from State exceptionally favorable fiscal conditions and other incentives.
� CAPITAL INVESTMENTS: protected by the Central Bank of Brazil, allows to convert credit into investments which can be set off against imports of assets without exchange coverage.� ACQUISITION, MERGING, FUSION: fully supported by Brazilian corporate laws.� TECHNOLOGY TRANSFER: Brazilian intellectual property law regulates the application of patents.� FUNDING, FINANCING AND INCENTIVES: besides national incentives, Minas offers a variety of financing schemes and incentives for new projects and competitiveness of existing ventures through its State development bank – BDMG, such as:
�FIND (INDUSTRY INCENTIVE FUND): a credit instrument to foster industrial development through two financial support programs, financing fixed investments and working capital.�FUNDIEST: designed to develop strategic industries.�FDMM: to fund mineral and metallurgical projects�FUNDESE: for small and medium-size companies dedicated to new technologies.�PRO-FOREST: to fund forestry activities.�FASTUR: financial incentives to tourism in regions of recognized potential.
comprehensive facilitiescomprehensive facilities
comprehensive facilitiescomprehensive facilities
In its efforts, BIOVALE counts with a number of efficient State organizations, working together to accelerate and stabilize the implementation of your investments, such as:
�SEDE – The State Secretariat of economic development: is in charge of the overall activities related to the economic development of the State.�BDMG – The Development Bank of Minas Gerais: manages state funds and finances enterprises.� CDI- The Company of Industrial Districts of Minas: is in charge of industrial areas making available full infra-structure.�FIEMG: The Federation of industries of the State of Minas Gerais -congregates 130 industry association, representing 80.000 industries in Minas Gerais. It has an international division to assist international affairs.�INDI – Integrated Development Institute: It carries out research, elaborate investment opportunities in the State and assists interested investors.�JOÃO PINHEIRO FOUNDATION: renders technical services related to economic and social development.�CETEC – Technological Center Foundation of Minas: researches projects and technological services.�EUROCENTRO/AL-INVEST: is a cooperation program between European and Latin American companies and institutions.�MINASINVEST: It is an investment promotion agency created by the civil society with the full support of the State Government and private sector.�BRAZIL TRADE NET/SIPRI: created by the Ministry of Foreign affairs to foster Brazilian exports.�PARTNERSHIP SEARCH DATABASE: managed by the European Commission, it is an important tool to assist small and medium size enterprises search for partners for transnational cooperation.
