Technological development of

biofuels in the region

Gustavo Motta
Biofuels Department
bio@mme.gov.br

Santa Cruz de la Sierra, Bolívia, August 19, 2019.

 History of Biofuel

1.7 to 0.2 million years ago – Firewood controlled by a member of “Homo” species
1100 – Ethanol for Lamp and Cooking
1826 – Smuel Morey first internal combustion engine with etanol
1860 – Nikolaus Otto efficient internal combustion engine with ethyl alcohol
1890 – Germany world’s first large scale biofuel industry (potato)
1900 – Rudolf Diesel - the diesel engine also used vegetable oil
1906 – Henry Ford built the Model T dsesigend for ethanol
1919 – Brazil first to push for biofuel
1920-1930 – Bioethanol began to fuel cars in United States
1940s – The first U.S. ethanol plant was built.
1970 – USA Clean Air Act - emissions and search for cleaner fuels
1973-1978 – Oil embargo and Iranian Revolution – search for substitutes
1975 – Brazilian “Proalcool” - The Biodiesel Program
1992 – USA Energy Policy Act - car produced for alternative fuel
2004 – Brazilian “PNPB” - The Biodiesel Program
2015 – Paris Agreement
 History of Biofuel

1900 – Rudolf Diesel - the diesel

engine also used vegetable oil
when invented

1906 – Henry Ford built the

Model T dsesigend for ethanol
 Biodiesel Mandates in Brazil

B20 Tests

B15 Tests
March, 2019

B10 Tests
March, 2017

B5 Tests
Ethanol Use in Brazil

75%
flex
fuel
Ethanol Savings and CO2 Avoided
 What’s Next?

CHANGES
FUEL PLATFORM CONSUNPTION

Less Fossils Flex Hybrid Vehicles Car

More Bio on more efficient Sharing
platforms
 Are Electric Cars Really Viable?

really green? at what price?

How much (really) does a pure
electric vehicle emit? Lithium and Cobalt Prices

Diesel Generator

Plug-in Electric Vehicle

 So..... What to do?

Signal to
market
players and
the
Emission Induction
automotive
assessment to the best
industry
“from possible
what is the
cradle to efficiency
energy
grave” standard
matrix for
the
medium to
long term
 RenovaBio: Problem → Solution

Dialog with society and

Stakeholders
PROBLEM SOLUTION
• Lack of predictability • Market driven incentive
to economic agents mechanisms
• Decarbonizing the fuel • Coase Market for pricing
matrix externalities
• Contribute to the • Transfer the costs (social/
security of domestic environmental) of using
fuel supply by fossil fuels as an income to
encouraging biofuels the production of biofuels
production and use • Efficiency incentives to its
• High domestic prices sustainable expansion
RenovaBio Concept: 3 Axes
 RenovaBio: What is it?

• It is the Brazilian National Biofuels Policy created in the MME that recognizes
the strategic role of renewable fuels for the national energy matrix (Law 13.576/2017)
• Materializes an effective contribution to a cleaner energy matrix
• Sustainable environment for investments up to R$ 1.3 trillion until 2030
• Creates the Brazilian “Carbon Capture Machine" per unit of energy
increasing efficiency in the production of biofuels
• Creates an integrative agenda with the Brazilian automotive industry
(ethanol electrification) and the petroleum industry (smooth transition)
• Creates competition in the fuel market benefiting the consumers,
which will pay less for fuels
• Reduces the growing national deficit with fuel imports
 RenovaBio: A Market Solution

• It is not subsidy
• It is not an increase in taxes
• It is a Brazilian "CARBON CAPTURE MACHINE"
• It values ​the service of CO2 withdrawal from the
atmosphere made by the national production of biofuels
• Generates more competition and efficiency for the
market, which results in lower prices for consumers
 RenovaBio: Carbon Sequestration

Biofuels are the only renewable source capable of promoting

the net CO2 retention trough carbon fixation.

RenovaBio Law
created bonus
up to 20% to
induce carbon
sequestration
The Carbon Capture Machine
 Final Remarks

• The expansion of the production and the use of biofuels RenovaBio

is promoting in Brazil will create investment opportunities.

• Decarbonisation credits like CBIO can be traded internationally,

helping to foster development of low carbon alternatives all over the
world. (E.g. CORSIA - Carbon Offsetting and Reduction Scheme for International Aviation obligations)

• International trade of such credits brings stability to domestic

prices, increasing liquidity and fungibility.
• Mechanisms such as RenovaBio are among the best solutions the
world can share for the transition to a
LOW CARBON, GLOBAL BIOECONOMY
¡Gracias!
Obrigado!
Thank you!

bio@mme.gov.br
gustavo.motta@mme.gov.br