Fuel Ethanol in Japan Fuel Ethanol in Japan XII JAPAN-BRAZIL Joint - - PowerPoint PPT Presentation

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Fuel Ethanol in Japan Fuel Ethanol in Japan XII JAPAN-BRAZIL Joint - - PowerPoint PPT Presentation

Apr 26, 2023 258 likes •347 views

Fuel Ethanol in Japan Fuel Ethanol in Japan XII JAPAN-BRAZIL Joint Economic Committee Meeting CNI - Nippon Keidanren March 6, 2006 - Sao Paulo Takao Omae Mitsui & Co., Ltd. 1 1 World Ethanol Production, Share by Application World

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Fuel Ethanol in Japan Fuel Ethanol in Japan

XII JAPAN-BRAZIL Joint Economic Committee Meeting CNI - Nippon Keidanren March 6, 2006 - Sao Paulo Takao Omae Mitsui & Co., Ltd.

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World Ethanol Production, Share by Application World Ethanol Production, Share by Application

9.6 12.6 3.2 12.1 14.7 3.4 14.3 14.7 3.7 16.2 16.1 3.8 19.2 16.7 3.9

20 40 60 80 100 120

2002 2004 2006 2015

U S A B r a z i l C h i n a I n d i a F r a n c e R u s s i a O t h e r s

Bevarage 15% Industiral 8%

Fuel 77%

(Unit: million kl) 34.1 39.2 41.3 45.0 50.1

Production/Estimation Production/Estimation Share by Application Share by Application

Source Source： ： Estimation / Estimation / F.O.Licht F.O.Licht

34.7

6.8 3.6

Beverage Industrial 15%

Fuel 85%

2005 2005 : : 45.0 45.0 million million kl kl 2015 2015 Estimation: Estimation: about about 1 104 04million million kl kl

89

15 105 54 million kl

  • f additional Fuel demand
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SLIDE 3

3 3 Japan

  • ETBE0.84 million kl in 2010

(0.36million kl Ethanol equivalent) Japan

  • ETBE0.84 million kl in 2010

(0.36million kl Ethanol equivalent)

E3: 3% Ethanol Blended Gasoline E10: 10％Ethanol Blended Gasoline ETBE: Ethyl Tertiary Butyl Ether

Europe (sugar beet, wheat, barley）

  • E5,E10 implemented: Sweden, Poland
  • ETBE implemented: Germany, France, Spain
  • Production: 4.7 million ｋ

ｌ (2006)

  • Biofuel 5.75% in 2010 (22 million kl)

10% and over in2030 (38 million) Europe (sugar beet, wheat, barley）

  • E5,E10 implemented: Sweden, Poland
  • ETBE implemented: Germany, France, Spain
  • Production: 4.7 million ｋ

ｌ (2006)

  • Biofuel 5.75% in 2010 (22 million kl)

10% and over in2030 (38 million) Philippine (sugarcane, Molasses)

  • E5 Obligation from 2009

Thailand （

cassava, molasses)

  • E10 Obligation by 2007

Philippine (sugarcane, Molasses)

  • E5 Obligation from 2009

Thailand （

cassava, molasses)

  • E10 Obligation by 2007

Brazil (sugarcane)

  • E20-25、

E100 (FFV) Implemented

  • Production:16.7million kl (2007)
  • Export : 3.0 million kl (2006)

Brazil (sugarcane)

  • E20-25、

E100 (FFV) Implemented

  • Production:16.7million kl (2007)
  • Export : 3.0 million kl (2006)

Use of Fuel Ethanol in the World Use of Fuel Ethanol in the World

USA (domestic corn + import)

  • E10 implemented in many states
  • Production:19.2million kl(2006)
  • Import：

2.5million kl(2006)

  • Renewable, Alternative Fuel

35 billion gal (133 million kl) in 2017 USA (domestic corn + import)

  • E10 implemented in many states
  • Production:19.2million kl(2006)
  • Import：

2.5million kl(2006)

  • Renewable, Alternative Fuel

35 billion gal (133 million kl) in 2017 China (domestic corn, rice etc)

  • E10 tests in 9 Provinces
  • Production: 3.9millionｋ

ｌ (2006) China (domestic corn, rice etc)

  • E10 tests in 9 Provinces
  • Production: 3.9millionｋ

ｌ (2006) Canada (grain) E5 obligation by 2010 Canada (grain) E5 obligation by 2010 India (sugarcane)

  • E5 implemented in 9 states

India (sugarcane)

  • E5 implemented in 9 states
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Ethanol Ethanol Production & Consumption in Brazil Production & Consumption in Brazil

2.74 15 2 4 6 8 10 12 14 16 Now 2013 (million Vehicles) Flex Fuel Vehicles in Brazil

17.4 14.3 35.7 28.7 10 20 30 40 m illion KL Now 2013 Ethanol Production & Consuption Ethanol Production Ethanol Consumption Source: ANFAVEA

3.7 21.6 50.2 78.1 82 20 40 60 80 100 % 2003 2004 2005 2006 Jan 2007 Flex Fuel Vehicle Sales

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Advantage of Sugarcane of Brazil Advantage of Sugarcane of Brazil

【 Brazil】

  • Dominant competitiveness of the production cost
  • Adequate climate condition for sugarcane

cultivation

  • Unused area 50 times more than the current

sugarcane plantation area where it is easy to expand the production

  • Huge unused area which is 9 times more than

Japan with no destruction of Tropical Amazon Forest.

  • Over 100 years of know-how in the use of Fuel

Ethanol for Automobiles 【 Sugarcane】

  • Possible to be cultivated widely in Tropical, Sub

Tropical Areas

  • Strong resistance
  • Possible to increase production by breed

improvement

  • Advantage of productivity per hectare, which is 3

times more than corn

  • Less competition against food application compared

with other raw materials

  • Energy generation by bagasse is possible by using

residue of sugarcane Possible to stably obtain Carbon Credit

Land area of Brazil 851million hectare Natural Area 463million hectare Possible Agriculture Development Area 388 million hectare Current Cultivation 62 million hectare Sugarcane Planted Area 6.3 million hectare Land area of Brazil 851million hectare Natural Area 463million hectare Possible Agriculture Development Area 388 million hectare Current Cultivation 62 million hectare Sugarcane Planted Area 6.3 million hectare

Ethanol Production Cost (premise Brazil=100) 262 424 150 137 161 100 219 107

100 200 300 400 500

B r a z i l U S A E u r p

  • e

C

  • l
  • m

b i a

L a t i n A m e r i c a I n d i a

P a k i s t a n

T h a i l a n d

(Source: Agra CEAS)

Future expected development Savanna area “Cerrado”

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Recent Foreign Investment in Brazil Recent Foreign Investment in Brazil

Cargill / USA origin Major Grain Company In June 2006 announced acquisition of Sugar & Ethanol Mill in Sao Paulo called CEVASA Bunge /Holland origin Major Grain Company In January 2007, made proposal for acquisition of the 3rd largest Sugar & Ethanol Mill, Vale do Rosario Louis Dreyfus / French origin Major Grain Company In February 2007, Agreed with the Tavares de Melo Group on acquisition of Sugar & Ethanol Business in Brazil, which made Louis Dreyfus become substantially 2nd largest Sugar & Ethanol producer Brazil.

  • Mr. George Soros / USA

In February 2006, made investment to Mote Alegre, Sugar & Ethanol mill in Minas Gerais State

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Situation of Japan Situation of Japan

August 2003

  • Revision of fuel regulation allowing 3% Ethanol blending to gasoline
  • Potential demand 1.8 million KL

August 2003

  • Revision of fuel regulation allowing 3% Ethanol blending to gasoline
  • Potential demand 1.8 million KL

April 2005

  • Government Approval of Biofuels for Transportation in the Kyoto Protocol

Target Achievement Plan

  • 0.5 million KL crude oil equivalent Biofuels (equivalent to 0.85 million KL
  • f Ethanol) by 2010

April 2005

  • Government Approval of Biofuels for Transportation in the Kyoto Protocol

Target Achievement Plan

  • 0.5 million KL crude oil equivalent Biofuels (equivalent to 0.85 million KL
  • f Ethanol) by 2010

February 2007

  • Discussion in Biomass Nippon Comprehensive Strategy Promotion

Committee

  • Discussion on 6 million KL of Bio Fuel Use

February 2007

  • Discussion in Biomass Nippon Comprehensive Strategy Promotion

Committee

  • Discussion on 6 million KL of Bio Fuel Use

January 2006

  • Petroleum Association of Japan
  • ETBE use of 0.84 million KL (0.36 million KL ethanol equivalent) by 2010

January 2006

  • Petroleum Association of Japan
  • ETBE use of 0.84 million KL (0.36 million KL ethanol equivalent) by 2010
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8 8

Activities of Japanese Private Sector in Brazil Activities of Japanese Private Sector in Brazil

1. Mitsui MOU with Brazilian Partners to secure stable supply and economical efficiency

  • March 2005:

MOU with Petrobras, CVRD to search best logistics solution

  • April 2006

MOU with Petrobras to study on production & marketing of Ethanol (Business & Price Model, Project Selection) Mitsui has intention to invite reliable Japanese partners to the project

  • February 2007

MOU with Petrobras, Camargo Correa to study on Ethanol Pipeline 1. 1. Mitsui Mitsui MOU with Brazilian Partners to secure stable supply and economical efficiency

  • March 2005:

MOU with Petrobras, CVRD to search best logistics solution

  • April 2006

MOU with Petrobras to study on production & marketing of Ethanol (Business & Price Model, Project Selection) Mitsui has intention to invite reliable Japanese partners to the project

  • February 2007

MOU with Petrobras, Camargo Correa to study on Ethanol Pipeline 2. Itochu

  • Technical Cooperation Agreement with CODEVASF, CAMPO
  • Feasibility Study on Ethanol and Bio Diesel

2. Itochu

  • Technical Cooperation Agreement with CODEVASF, CAMPO
  • Feasibility Study on Ethanol and Bio Diesel

3. Marubeni

  • Establish JV with Agrenco
  • Plan to invest in production of Bio Diesel

3. Marubeni

  • Establish JV with Agrenco
  • Plan to invest in production of Bio Diesel