IANAS Workshop: Toward a sustainable energy future Buenos Aires, October 30-31, 2008

1. IANAS Workshop:Toward a sustainable energy futureBuenos Aires, October 30-31, 2008 Fuel ethanol from sugar cane: technology development and near term perspectives I. C. Macedo, NIPE/UNICAMP

2. Topics • Ethanol production technology today • Technology development in Brazil: history, drivers and problems, and the new possibilities • Perspectives for the LAC countries • Development issues and main areas

3. Sugar cane growing areas UNICA, 2006

4. State of the art in ethanol production/use technologies • Brazilian ethanol from sugar cane, 2006: 15.7 M m3; (3.3 M ha); 24 M m3 in 2008; expected 55 M m3 in 2020.Cane production: no irrigation 82.4 t cane/ ha; pol%cane= 14.5; fiber %cane = 13.5; 35% mechanical harvesting (2006) → 100% in ten yearsCane processing: 1 t cane → 85 L ethanol + 2.1 kWh electricity GHG net emissions in production, 2006: 0,27 t CO2e/ m3 anhydrous ethanol • (Renewable energy output)/(Fossil energy used) = 8,9 • Flex fuel cars correspond to more than 90% of all the new cars in Brazil (2008); ethanol substitutes for 45% of the gasoline

5. Technology development in Brazil: history and the new possibilities The growth in ethanol production in the last decades has shown that technological advances were essential to reduce costs and environmental impacts. Today, new possibilities include the use of cane biomass (lignocellulosic material) to produce ethanol and/or electricity; and the diversification to new sucrose and ethanol products. Many technologies are under development. It is expected that in 2020 it will be possible to produce 50% more commercial energy from the same sugar cane area.

6. Technology development, 1975-2000 1980/ 1990 Introduction of cane varieties specifically developed for Brazil Introduction of the “4 roll” milling systemThe development of large scale “open” fermentation systems; process and controlProduction flexibility: synergy ethanol/sugar Stillage use in ferti-irrigationBiological controls in cane production Increased energy production (self-sufficiency) Improvement in agricultural operations (cultivation, harvesting) Ethanol specifications; engine (E-100) developments Blending, storage and transportation systems

7. Technology development, 1975-2000 1990/2000 Selling of surplus power Adoption of better technical management systems (agriculture and industry)Optimization of cane harvesting, loading and transportation Advances in industrial automation Mapping of the sugar cane genome; plant transformations Harvesting mechanization The Flex-fuel engines

8. Productivity Gains C-S Region gal ethanol/hectare t cane/hectare 85,00 1.750,0 80,00 75,00 1.550,0 70,00 1.350,0 65,00 t cane/hectare gal ethanol/hectare 60,00 1.150,0 55,00 50,00 950,0 45,00 40,00 750,0 75 80 90 00 04 Source: UNICA 2005

9. Ethanol Production Learning Curve . Source: Goldemberg, J., et alii, 2004

10. Development : main agents The evolution from 1975 to 2000 led to: + 33% t cane / ha + 8% sucrose % cane + 14% industrial conversion to ethanol + 130% fermentation productivity Higher product quality, lower costs Besides the technology development in Brazilian R&D centers, it was very important to promote: • Absorption and adaptation of external (other countries) technology • Internal technology transfer

11. Development : main agents Private sector: Sugar mills: CTC (C T Copersucar, now C T Canavieira): A + I NATT (Tech Center, Cooperativa de Alagoas): A + I Many individual mills participating in R&D programs Equipment manufacturers Large number, including Dedini, Zanini, Smar, etcTechnology companies: Votorantim (Allelyx, Canavialis): A Engineering and Consulting companies Large number: A + I Petrobrás (Hydrolysis); Oxiteno, Braskem (alcohol chemistry)

12. Development : main agents Government: Research Institutes: IAA-Planalsucar (today, RIDESA: 7 federal universities): A IAC – Inst. Agronomico de Campinas: A IPT – Inst PesquisaTecnológica, S Paulo: IEmbrapa (agro-energia) A Universities: ESALQ/USP (Agronomy; Polo de biocombustíveis) UNICAMP, USP, UNESP (State of São Paulo) CENBIO, NIPE Research funding institutions FAPESP (S Paulo) FINEP (MCT, federal)

13. The use of international expertise in CTC’s development Experts from many countries were used by CTC since its first years; a large number of foreign researchers stayed in CTC for long periods. Among them: • The breeding programwas started in the late 1960’s; the program “designer” was dr Mangelsdorf (HSPA: Hawaiian Sugar Cane Planters Association)In the 1980-90 period, the program had as one advisor dr James Irvine (Louisiana, and Texas A&M) • In 1977, to start the industrial program, a group of ten Brazilian engineers was sent to a one year specific training course in Mauritius MSRI (Sugar Research Institute) covering the main aspects of the industrial production and control

14. The use of international expertise… • In the 1980’s, the sugar processingarea used as consultants researchers from the SRI (Australia): drs Ted Wayman and Owen Crees. In the same area, P. Mellet (South Africa’s SMRI) also worked at CTC. • The partnership with SPRI (Sugar Processing Research Institute; drMargareth Clark) was very important for the analytical methodologydevelopment (sugar) • The consultancy with the HSPA group of T. Payne (instrumentation, boilers, and sugar processing) was important in the 1980’s • The full support of D. Hullet and his group (South Africa) in the 1980’s was essential in establishing the basis for the new “Brazilian” milling system; also the later work by G. Sullivan (Australia)

15. The use of international expertise… • In the 1980’s, the consultancy with P. Cogat (UNGDA - Union Nationale Générale des Destilateurs d”Alcohol, France) led to new developments in distillation • In the 1990’s the cane production area (soils, fertilization) used for many years the consultancy of dr G Thompson (SASTA: South Africa) • Brazilian researchers were trained at the Fundação Gulbenkian (Oeiras – Portugal) to work in the development of new yeast strains • Many of the researchers in the sugar cane genetic modificationprograms were trained in the U.S. and Europe; the sugar cane genome mapping used some foreign researchers (as well as many Brazilian Institutes) • The studies in bagasse and trash gasification and power production were conducted (1990’s) with TPS (Sweden)

16. The use of international expertise… • The development programs used a very large number of contracts with Brazilian universities (and Institutes) and a few with universities outside Brazil • The Brazilian equipment industry, today producing all the components for sugar & ethanol factories, has used (and uses today) many technology contracts (licensing, buying) with foreign companies.

17. Sugar cane and ethanol technology in LAC: policies and agents Some R&D Centers in LAC (except Brazil); mostly for sugar cane and sugar Mexico: IMPA (closed 1992); Asoc. Tecnicos Azucareros de Mexico C. Hibridación Capachula A CICTCAÑA (law, 2005): CP + I Universities (Veracruz, UNAM): I Cuba ICIDCA, ICINAZ: A + I

18. Sugar cane and ethanol technology in LAC: policies and agents Some R&D Centers in LAC… Other Central America and Caribbean (32.8 M t cane; 400 k ha) Guatemala: ASAZGUA supports CENGICAÑA (A + I) Costa Rica: LAICA supports technology transfer El Salvador; Honduras, Nicarágua, Panamá South America Argentina: Chacra Experimental Santa Rosa V Estaccion Experimental Obispo Colombres Colombia: CENICAÑA A + I Ecuador: CINCAE A Venezuela: Fundacaña Venezuela

19. Sugar cane and ethanol technology in LAC: policies and agents Some important initiatives: In 2007: meetings with BID (R&D centers and ethanol/sugar producers) to create a network of technology centers (R&D programs and technology transfer), based in Guatemala. Since 1992: the International Sugar Cane Biothechnology Consortium, originated at CTC and including many LAC countries, working on “pre-commercial” technologies for sugar cane genetic transformation

20. Technology scenarios for 2020 • Technology evolution: (precision agriculture, separation processes, integrated harvesting / loading / transportation systems, industrial automation) • By- products: surplus electricity; ethanol from bagasse and trash (10 -15 years?) • Sucrose/ethanol derived products (being implemented) • Medium – long term perspectives for sugar cane genetically modified varieties • Medium-long term: the “bio-refineries” with full utilization of sucrose and wastes (bagasse and trash)

21. Cane biomass utilization Sugar cane in Brazil, 2005: 60 M t sucrose; 120 M t ligno-cellulosic material It is expected that in the next 10 – 20 years much more efficient use of sugar cane biomass will increase significantly the range of products and their value. Technologies in development (worldwide) are key for this transformation: the hydrolysis of biomass (bagasse and trash),and biomass gasification, leading to electricity or fuel synthesis. Sugar cane appears an ideal feedstock for future “bio-refineries”, for its relatively low cost, large availability and an interesting mix of 1/3 sucrose + 2/3 pre-processed ligno-cellulosic material.

22. Estimated time for full commercial availability of some new technologies (biomass conversion)

23. Research needs for the next years • Continuous evolution of today’s processes • New sucrose and ethanol derived products • “Radical” technologies Bagasse and trash utilization (hydrolysis, gasification) Sugar cane genetic transformations → In the LAC countries there is an established basis (infrastructure and personnel) in the cane production area; but there are no adequate resources (laboratories, researchers, pilot and demonstration plants) for the new technology development in the conversion (industrial) area.

24. Suggested research topics Priority for “Radical” Technologies • Recovery and utilization of trash and surplus bagasse (Hydrolysis; gasification; direct sugars conversion ) • Development of sugar cane transgenic varieties Continuous improvements: • Conventional sugar cane breeding for specific areas • Process and equipment for juice extraction, conditioning, fermentation and ethanol separation • Precision agriculture; biological controls; cane cultivation for mechanical harvesting Connected areas: • New processes for sucrose and ethanol chemistry. • End use processes: advances in flex-fuel engine technology, and ethanol fuel cells.

25. Recommendations (Brazil) • Alocar recursos em volumes maiores durante os próximos anos, (mecanismos de financiamento existentes, recursos privados) • Estabelecer uma gestão coordenada das atividades em desenvolvimento e por desenvolver, incluindo mecanismos eficientes de acompanhamento e divulgação; • Consolidar as estruturas de P&D existentes e ativas (públicas e privadas), promovendo e articulando a capacitação disponível e evitando a criação de novas estruturas administrativas • Promover, em projetos selecionados, pilotos pré-comerciais e unidades de demonstração, usando recursos públicos no financiamento direto aos empreendedores privados • Reforçar os programas de capacitação de pessoal em produção e utilização de bioenergia, no nível de pós-graduação.