2. OBJECTIVES
PRODUCTIVE CHAIN
R&D
R&D
Technological development Planting 60.000 hectares
Planting 60.000 hectares
of highly yielding oleaginous of jatropha curcas on first
of jatropha curcas on first
(jatropha curcas) for phase in the North of M.Gerais
phase in the North of M.Gerais
biodiesel production and and along piping systems.
and along piping systems.
environment protection
expelling systems
expelling systems
Transesterification
Transesterification
by-products utilization
by-products agriculture industry
research
3. OBJECTIVES
agriculture
research by-prodcuts industry
The R&D project of Biovale envisages achieving cost-effective, environmental
friendly alternatives to ensure higher plant productivity in marginal lands,
unproductive lands, reclaimed lands and wastelands created by the industry.
The use of a beneficial group of micro-organisms, known as mycorrhizal fungi,
which form an association with the roots of higher plants Thrust areas:
Documentation, preservation and characterization of mycorrhizal germplasm
Development of ROC (Root Organ Culture) of different arbuscular mycorrhizal (AM)
fungi and their in vitro mass inoculum production
Bio-diesel
Utilization and reclamation of industry created wastelands
4. the mycorrhized Jatropha benefits
Jatropha, the energy plant has been well identified
towards offering clean fuel for achieving energy security.
Jatropha seeds inoculated with in vitro- raised mycorrhiza
exhibits early fruition and flowering from the 7th month
onwards as against a year with conventional clonal
plantations and two years from seed raised plantations.
The mycorrhized Jatropha also exhibited 20%โ30% higher
yields as compared to non-mycorrhizal plantations.
Proved to be well adaptable in diverse wastelands
(marginal lands, fly ash dykes, chlor alkali sludge-loaded
wastelands, distillery effluent loaded wastelands, solar
drying lagoons, nutritionally stressed soils, effluent
generated from soft drink producers and several other
cooperate plantations, etc.).
5. the challenge
Although the facts and figures of potential role of mycorrhizal
association in enhanced nutritional and water needs of plants in
laboratories, the major bottleneck for its widespread application to
reach the end-users is its bulk production to cater the huge
requirement.
A known fact that culturing mycorrhizal fungi in laboratory
conditions like other microbes was not possible due to its strict
biotrophic nature of proliferation in the presence of suitable host has
been the major reservation of its future contribution in agriculture.
The mass inoculum technology envisages to exploit the genetically
modified host roots using the Agrobacteriumum rhizogenes carrying
Ri T-DNA plasmid. The technology offers the mass production of
viable, healthy, genetically pure and high quality fungal propagules,
without any pathogenic contamination under in vitro environment.
6. New Technologies, New Gains
Biofuel production
has become
substantially more
efficient over the last
25 years as Brazil and
the United States
have scaled up their
industries.
Such incremental
gains are likely to
continue for years to
come.
However, the greatest potential for biofuels lies in the
development of new technologies that will significantly
expand the range of biomass feedstock, increase
conversion efficiencies, and lower production costs.
7. OBJECTIVES
DESCRIรรO SUMรRIA
agriculture
research by-products industry
Usage of jatropha residues after oil expelling for production of animal feed stock and
mushrooms.
- To assess the compost of the residue and evaluate the potential of the usage of appriate
fungus in the elimination of toxicity of the residues for further utilization as animal feed
stock and production of edible mushrooms.
- The bioconversion would convert the residue, currently considered toxic and used only as
biofertilizer, in products of highly added value.
Usage of glycerin for production of various industrial products as pharmaceutical and
food stuff.
8. adding value to the chain
Increasing added value of the residue J. curcas and glycerin after bio-
diesel production
The seed kernels are rich in crude protein, CP (31โ34.5%) and lipid (55โ58%).
The neutral detergent fibre contents of extracted J. curcas meals were
between 3.9% and 4.5 % of dry matter (DM). The gross energy of kernels
ranged from 31.1 to 31.6 MJ/kg DM. The contents of starch and total soluble
sugars were below 6 %. The levels of essential amino acids, except lysine,
were higher than that of the FAO/WHO reference protein for a five year old
child in all the meal samples on a dry matter basis. At least, 30 to 50 % is
residue after oil extraction and 10 % is glycerin.
The ordinary use of this residue is as soil organic fertilizer after composting
as it possesses a compound known as phorbol, which is toxic to animals. Thus,
the R&D aims at studying not only the composting process of J. curcas
residues but also to evaluate the detoxification potential of white rot fungi
for mushroom and animal meal production.
Another problematic residue from bio-diesel industry is glycerin, which the
research envisages to transform it in propionic acid and 1,3-propanodiol,
using a specific group of bacteria. Propionic acid and 1,3-propanodiol that
are important products to be added to animal meal for enhance milk and
meet production of ruminant.
9. cultivating challenges
The great challenge is to warrant the plantation in large scale, complying with the
minimum requirements set forth in the Brazilian regulations and international
standards.
Organizing a broad productive chain, aiming at securing the competitiveness of the
small production and consequential access to tax, financial and fiscal incentives to
make the project economically viable.
The dimensions of the domestic market, imposed by laws, turns imperative the
articulation of the various stakeholders in Brazil and abroad.
The main path for the economic feasibility and large scale production is the finding of
cheaper and more yielding oil raw-materials/oleaginous and a higher productivity per
planted area.
Critical point is the need to make compatible the productive gains in all stages of the
productive chain, considering that the industrial costs and gains are relatively small
(about 15 to 20%).
Therefore, emphasis should be given on the agronomic research
securing uniform and high yielding oil feed-stock and adding value
to the by-products as proposed by the BioVale Project.
10. OBJECTIVES
DESCRIรรO SUMรRIA
agriculture
research by-procucts industry
Setting up 30.000 hectares of jatropha curcas plantation in 35
municipalities in the poorest regions of Minas Gerais State (North and
Jequitinhonha and Mucuri Valleys.
Production of 44.000 tons yearly of raw vegetable oil to supply
biodiesel plants in the vicinity (PETROBRAS, Montes Claro city)
Production of 44.000 tons yearly of raw vegetable oil along piping
systems to Rio de Janeiro to export
recuperation of wasted and reclaimed lands with mycorrhized jatropha
plantation
11. Jatropha curcas: the feedstock
Perennial crops of Jatropha Curcas will be used to protect lands that are
vulnerable to erosion and to restore lands degraded by grazing.
The yields of currently used biofuel feedstock vary widely. Jatropha
seeds have proven advantageous in several spheres.
12. Jatropha curcas: the feedstock
Jatropha is identified under the physical-chemical platform of
biomass energy conversion route. It is a drought-resistant
perennial, living up to 50 years and growing on marginal soils
(HENNING, 1996).
The remote rural communities of the Brazilian semi-arid in drought
regions will be able to address their energy needs using the
Jatropha resource.
The Jatropha Curcas was especially selected because the plant is
not an invasive species (GรBITZ ET AL., 1999) and permits the
growth of other plants in its vicinity, so it does not negatively
affect the ecosystem.
The results of the researches developed by EPAMIG, the State
Agriculture R&D entity, in the 80ยดand the preliminary current
( 2004/2006) results attest the potentiality of the jatropha curcas
cultivation in the semi-arid region
13. physico-chemical properties
Comparison of the Physico-chemical Properties
of Diesel and Jatropha Oil
with the exception of their solidifying points, flash points and percentage
of sulphur, Jatropha oil is very comparable to diesel oil. The minute
amount of sulphur present in the biofuel is environmentally preferable to
that of diesel as sulphur dioxide emissions from the biofuel are very low.
Biodiesel has a higher cetane rating than diesel, which improves engine
performance.
Parameter Diesel Jatropha
Energy Content (MJ/kg) 42.6-45.0 39.6-41.8
Specific weight (15/400C) 0.84-0.85 0.91-0.92
Solidifying point (0C) -14.0 2.0
Flash point (0C) 80 110-240
Cetane value 47.8 51.0
Sulphur (%) 1.0-1.2 0.13
Source:Schrimpff, 2002).
14. OBJECTIVES
agriculture
research By-products industry
Installation of des-centralized plants for oil expelling and usage
of by products by means of mechanical extraction.
Commercialization of raw vegetal oil for biodiesel plants and
investments in transesterification industries
Collection and conversion of recycled oil into biodiesel in
cosmopolitan cities in Brazil
15. GOALS
PRODUCTIVE CHAIN
R&D
R&D
SHAREHOLDING STAKE IN BIO-
SHAREHOLDING STAKE IN BIO-
GRANTING OF DEVELOPING
DIESEL BUSINESS AND INVESTMENTS
DIESEL BUSINESS AND INVESTMENTS
PROCESS PROTECTION AND
PATENT VEGETABLE OIL AND BIODIESEL
VEGETABLE OIL AND BIODIESEL
INDUSTRIALIZATION
INDUSTRIALIZATION
COMERCIALIZATION OF BY-
RECYCLING OIL PLANTS
PRODUCTS AND SEEDLINGS RECYCLING OIL PLANTS
CARBON MARKET
CARBON MARKET
ENVIRONMENT SERVICES
by-products agriculture industry
research
16. incentives
The model was designed to grant total or partial federal taxes exemptions (CIDE, PIS/PASEP and
COFINS) applying to fuels for biodiesel producers that support family farming, in order to allow for
compliance with the basic guiding principles of the Brazilian Biodiesel Program. The objective is the
promotion of social inclusion and reduction of regional inequalities through the generation of jobs
and income in the poorest sectors of Brazilian agriculture. The model is based on the following
assumption:
Federal taxation on biodiesel should never exceed those on fossil diesel. However, biodiesel
producers that acquire raw material from family farmers, anywhere in Brazil, are eligible to
reduction of up to 68% in federal taxes. If these purchases are made from family-based producers of
palm oil in the North Region, or of castor oil in the Northeast and in the Semi-Arid Region, the
reduction may reach 100%.
If the raw material and the regions are the same, but if producers are not family farmers, the
maximum reduction is of 31%. In order to qualify for these tax benefits, biodiesel producers have to
hold a certificate: the Social Fuel Label.
The Social Fuel Label is a certificate issued to biodiesel producers that purchase raw materials from
family farmers within minimum limits that vary according to the region, and which meet the
additional requirements mentioned below. As provided by Normative Instructions MDA 01 and 02, of
2005, the Social Fuel Label is issued by the Ministry of Agrarian Development (MDA) to biodiesel
producers authorized by the Brazilian legislation to produce and sell this new fuel provided that they
meet the following requirements:
a) To purchase minimum percentages of raw materials from family farmers, 10% from regions North
and Mid-West; 30% from the South and Southeast and 50% from the Northeast and the Semi-Arid
Region; and
b) To enter into contracts with family farmers establishing deadlines and conditions of delivery of
the raw material and the respective prices, and to provide them with technical assistance.
17. credit lines
There are funding lines with reduced financial charges and longer grace and amortisation
periods for the entire biodiesel value chain, encompassing investments in equipment and
industrial plants and loans for the planting of raw material for the production of biodiesel.
These loans are granted by official banks with funds from the National Bank of Economic and
Social Development (BNDES), from the National Program for the Strengthening of Family
Farming (Pronaf) and from other sources.
Given the economic attractiveness of the production of biodiesel, other credit institutions are
funding or planning to fund links of the biodiesel value chain, such as Banco do Brasil, with the
BB-Biodiesel line of credit, and other official banks and national and foreign private banks
The federal incentive resources and financing funds to technological development is another
important instrument within the PNPB. These incentives include the selection of raw materials
according to the different regional soil and climate characteristics, one of the most important
aspects, due to the diversity of oleaginous plants and to the fact that they represent about 75%
of biodiesel production costs.
Another important component is the development and/or improvement of more efficient
industrial production processes and tests in engines and components with different proportions
of biodiesel for supporting the use of biodiesel-diesel mixes in percentages above 5% in the
near future.
New uses and applications for the co-products of the production of biodiesel (particularly
animal-feed products and glycerine) also receive technological development support.
18. legal requirements
Basic requirements to produce
biodiesel in Brazil:
To obtain authorization from ANP (compliance with Resolution
41/2004) for a full list of requirements.
to obtain registration with the Federal Inland Revenue Secretariat
(SRF) of the Ministry of Finance, pursuant to Law 11.116/2005,
and Normative Instruction SRF 516/2005.
Companies willing to receive the tax benefits associated to social
inclusion and to regional development (generation of jobs and
income for family farmers, particularly in the most poor regions of
the Country), must additionally obtain the Social Fuel Label.
19. Brazilian legal framework
Law 11.097, 2005: defines biodiesel as a new fuel in the Brazilian energy matrix, establishes a
mandatory mix of 2% starting from January, 2005 and of 5% in January, 2013, all over the national
territory. I grants ANP (National Oil Agency) the competence to regulate and supervise the
production and commercialization of biofuels.
Law 11.116, 2005: defines the federal tax model applicable to biodiesel (exemption or reduction of
CIDE, PIS/PASEP and COFINS, according to region, type of producer and oleaginous raw material).
Normative Instructions SRF 516, 2005, and 628, 2006, which establish, respectively, conditions for
the registration of biodiesel producers and importers and a special regime for the calculation and
payment of federal taxes PIS/PASEP and COFINS.
Executive Order 5.448, 2005: establishes at 2% the percentage of the mix of biodiesel and
authorizes higher percentages for use in generators, train engines, boats and captive vehicle fleets.
Normative Instructions MDA 01, 2005 (establishes criteria and procedures for granting the use of
the Social Fuel Label) and MDA # 02, 2005 (establishes criteria and procedures for including projects
of biodiesel production in the mechanism of the Social Fuel Stamp).
ANP Resolutions: Resolution 41, 2004, which deals with biodiesel producers, and Resolution 42,
2004, which deals with the commercialization and inspection of biodiesel.
Resolution BNDES 1.135/2004: Creates the Program of Financial Support for Investments in
Biodiesel, which provides financing for all stages of the productive chain (the program funds up to
90% of projects having the Social Fuel Label and up to 80% for convencional projects).
20. Managers:
Gilberto Ciro โ gilbertociro@biovale.ind.br
Mobile 55-31-87927042
Elisio Baraรงal โ elisiobaracal@biovale.ind.br
Mobile 55-31-9662-1147
