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Small-Scale Biodiesel Production As an Alternative for Agro-Industrial

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Small-Scale Biodiesel Production As an Alternative for Agro-Industrial SMALL-SCALE BIODIESEL PRODUCTION AS AN ALTERNATIVE FOR AGRO-INDUSTRIAL DIVERSIFICATION THE BRAZILIAN EXPERIENCE Small-scale biodiesel production as an alternative for agro-industrial diversification The Brazilian experience Edited by Ronaldo Perez Aziz Galvão da Silva Jr Marina Barbosa Passos Carlos A. da Silva Food and Agriculture Organization of the United Nations Rome, 2016 This document is unedited and made available as presented by its authors. Cover photo: Soybean field (United Soybean Board – under a Creative Commons Attribution 2.0 licence) The designations employed and the presentation of material in this information product do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations (FAO) concerning the legal or development status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. The mention of specific companies or products of manufacturers, whether or not these have been patented, does not imply that these have been endorsed or recommended by FAO in preference to others of a similar nature that are not mentioned. The views expressed in this information product are those of the author(s) and do not necessarily reflect the views or policies of FAO. © FAO 2016 FAO encourages the use, reproduction and dissemination of material in this information product. Except where otherwise indicated, material may be copied, downloaded and printed for private study, research and teaching purposes, or for use in non-commercial products or services, provided that appropriate acknowledgement of FAO as the source and copyright holder is given and that FAO’s endorsement of users’ views, products or services is not implied in any way. All requests for translation and adaptation rights, and for resale and other commercial use rights should be made via www.fao.org/contact-us/licence-request or addressed to [email protected]. FAO information products are available on the FAO website (www.fao.org/publications) and can be purchased through [email protected]. iii Contents PREFACE viii EDITORIAL SYNTHESIS: BIOENERGY AGRO-INDUSTRIES TO SUPPORT RURAL DEVELOPMENT ix Roberto Cuevas-García and Carlos A. da Silva CONTRIBUTORS xviii ACRONYMS xix Chapter 1 Concepts 1 Mariana Barros Teixeira; Marina Barbosa Passos; Ronaldo Perez; Aziz Galvão da Silva Jr Chapter 2 Bioenergy overview 5 Marina Barbosa Passos, Thomás Valente de Oliveira, Ronaldo Perez and Aziz Galvão da Silva Jr Chapter 3 Historical overview of Brazilian biofuel policies 9 Marina Barbosa Passos; Jonas Roberto Barrél; Ronaldo Perez; Aziz Galvão da Silva Jr Chapter 4 Brazilian market of major oilseeds, oils and meals for the production of biodiesel 27 Karina Rogério de Oliveira Viana; Ramon Barrozo de Jesus; Ana Carolina Alves Gomes; Ronaldo Perez; Aziz Galvão da Silva Jr Chapter 5 Biodiesel: The creation of public policies for social and economic development 41 Edna de Cássia Carmélio Chapter 6 The Social Fuel Seal Program: Assuring the participation of small-scale producers (family farming) 55 Edna de Cássia Carmélio; Luis Felipe Sad Grossi Chapter 7 Agricultural technology: The importance of integrated fuel and food chains 69 Luiz Antônio dos Santos Dias; Marcelo Dias Müller; Elizabeth Nogueira Fernandes; Denise Cunha Fernandes dos Santos Dias Chapter 8 Oilseed intercropping: making biodiesel production feasible 79 Ramon Barrozo de Jesus; Aziz Galvão da Silva Jr; Ronaldo Perez Chapter 9 Vegetable oil extraction for the production of biodiesel 85 Marco Túlio Coelho Silva; Marina Barbosa Passos iv Chapter 10 Use of oil extraction by-products as feed 103 André Soares de Oliveira Chapter 11 Promoting investment in biodiesel agro-industrial chains: Methods of analysis and BiodieselFAO 111 Moacir Chagas Borges; Ronaldo Perez; Aziz Galvão da Silva Jr; Marcos Marinho Teixeira Chapter 12 Family farming product trading and production cooperative, Bahia State 121 Luiz Bacelar Barata; Joélcio Cosme Carvalho Ervilha; Ronaldo Perez; Aziz Galvão da Silva Jr Chapter 13 Biodiesel in the mesoregion of Norte de Minas 129 Joélcio Cosme Carvalho Ervilha; Ronaldo Perez; Aziz Galvão da Silva Jr Chapter 14 Guariba Biodiesel Project 135 Evandro Luiz Dall’Oglio; Paulo Teixeira de Souza Jr Bibliography 143 FIGURES, TABLES, GRAPHS AND BOXES Editorial Synthesis: Bioenergy Agro-Industries to Support Rural Development T able 1. Biodiesel projections xii Table 2. Evolution of biofuels in Brazil xvi 1. Concepts Figure 1. Technological paths for the production of bioenergy from biomass 1 Figure 2. Technological routes for the production of biodiesel 3 Figure 3. Technological routes for the production of ethanol 3 Table 1. Most important biofuels, definitions and sources 2 2. Bioenergy overview Graph 1. World energy supply by source, 1971 to 2010 5 Graph 2. World energy supply by source, percentages, 2002 to 2011 6 Graph 3. Worldwide production of biodiesel, 1991 to 2012 7 Graph 4. Worldwide production of ethanol, 1991 to 2012 7 Table 1. Production of biodiesel by country, 2004 to 2012 8 Table 2. Production of ethanol by country, 2004 to 2011 8 3. Historical overview of Brazilian biofuel policies Box 1. The Development of the National Alcohol Program 11 Figure 1. Outline of the actions of the main actors involved in the PNPB 14 Figure 2. Location of biodiesel plants with Marketing Authorization and Special Registration 19 Graph 1. Brazilian production of sugar cane, sugar, and ethanol, 1975 to 2012 11 Graph 2. Brazilian production of ethanol, 1980 to 2012 13 Graph 3. Brazilian production of biodiesel, 2005 to 2012 15 Graph 4. Monthly biodiesel production in Brazil, 2005 to 2012 15 Graph 5. Biodiesel production in Brazilian regions 16 v Graph 6. Authorized capacity of biodiesel production plants per region, 2008 to 2012 17 Graph 7. Installed capacity of biodiesel production plants 19 Graph 8. Use of raw materials for biodiesel production, percentage, 2012 20 Table 1. Contribution of the states and regions to the supply to biodiesel auctions, 2012 17 Table 2. Business groups with greater contributions to the production of biodiesel 18 Table 3. Biodiesel plants and production capacity by geographic region, 2010 18 Table 4. Overview of auctions to sell biodiesel, 2005 to 2013 21 4. Brazilian market of oilseeds, oils and meals for the production of biodiesel Figure 1. Soybean production and average productivity by municipality, 2008 28 Figure 2. Installed capacity of the vegetable oil industry by region 34 Graph 1. Prices of soybeans in Chicago and in Rondonópolis, 2009 to 2012 29 Graph 2. Prices of castor seed in Irecê, 2005 to 2011 30 Graph 3. Planted area and production of cottonseed in Brazil, 1998 to 2012 31 Graph 4. Domestic prices of cottonseed and cotton lint, 2002 to 2012 31 Graph 5. Prices of sunflower seed, 2008 to 2012 32 Graph 6. Prospects for the consumption of vegetable oils 32 Graph 7. Vegetable oil prices, 2001 to 2013 34 Graph 8. Processing capacity 35 Graph 9. Soybean oil prices, 2008 to 2012 36 Graph 10. Cottonseed oil prices, 2008-2012 36 Graph 11. Palm oil prices, 2008 to 2012 37 Graph 12. Sunflower oil prices, 2009 to 2012 37 Graph 13. Average price of major meals in the USA, 2001 to 2013 38 Graph 14. National price of meals and cakes, 2012 39 Graph 15. Average wholesale price of soybean meal 40 Table 1. Major oilseed producers worldwide 27 Table 2. Production of major oilseeds in Brazil 28 Table 3. Production, productivity and cultivated area of soybeans in Brazil 29 Table 4. Production and cultivated area of castor seed in Brazil 30 Table 5. Production and cultivated area of sunflower in Brazil 32 Table 6. World production of major vegetable oils, 2011 to 2012 33 Table 7. Oils produced in Brazil 33 Table 8. Brazilian market of soybean oil, 2005 to 2013 35 Table 9. Balance of demand and supply of soybean meal 38 Table 10. Brazilian production of cotton and byproducts 38 Table 11. Brazilian production of oilseed meal and cake 39 5. Biodiesel: The creation of public policies for social and economic development Chart 1. Visions on the model to be adopted in Brazil 42 Chart 2. Development of the National Alcohol Program 43 Chart 3. Work plan of the Management Group 45 Figure 1. Technological paths for the production of bioenergy from biomass 46 Figure 2. Map of biodiesel production poles, 2009 47 Graph 1. Marketing of biodiesel by companies with or without the Social Fuel Seal Program 49 Graph 2. Family farming in the biodiesel production chain, 2008 to 2012 50 Graph 3. Revenue generated by family farming of biodiesel, 2008 to 2012 51 Graph 4. Average revenue per farming family, 2008 to 2012 51 Graph 5. Raw materials purchased to family farms by biodiesel companies, 2006 to 2009 52 vi 6. The Social Fuel Seal Program: assuring the participation of small-scale producers (family farming) 55 Table 1. Production from farms up to 100 ha or more than 100 ha 56 Table 2. Income distribution for family farming and commercial farming 56 Table 3. The biodiesel tax model 58 Table 4. Brazilian trade balance, 2010 60 Box 1. Example of calculation of purchase percentage 60 Chart 1. Productive arrangement in biodiesel: the integrated system for oil-palm plantations in Pará 65 7. Agricultural Technology: The importance of integrated fuel and food chains 69 Figure 1. Agroforestry systems according to their structural and functional characteristics 72 Figure 2. Crop, livestock and jatropha integrated system 73 Figure 3. Interaction of jatropha with cattle in Santa Vitoria, Triangulo Mineiro region 74 Figure 4. Interaction of jatropha, corn and Brachiaria spp. in Conceição da Barra de Minas Gerais 74 Figure 5. Interaction of jatropha with dairy cattle in Santa Helena de Goiás 75 Figure 6. Interaction of jatropha with sheep in Redenção da Serra, São Paulo 76 Figure 7.
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