Presentation held in New Delhi, India http://www.isaf2010.org/

1. Sugar cane as an energy crop: current status and future trends in Brazil André Martins de Martini Promon Engenharia Brazil Wednesday, 10th of March, 2010

3. Overview of sugar cane and ethanol production in Brazil

4. Energy outlook and cogeneration

5. Case Study – the “energetic” plant

6. Recent developments

8. Overview of sugar cane and ethanol production in BrazilEvolution of sugar cane production from 1975 to 2008 After negligible increase during the 90´s, Brazilian total production has been raising for the last 5 years in an average rate of 15% per year. Source: Brasil. Ministério da Agricultura, Pecuária e Abastecimento. Anuário estatístico da agroenergia / Ministério da Agricultura, Pecuária e Abastecimento. – Brasília : Mapa/ACS, 2009. 160 p.

9. Overview of sugar cane and ethanol production in Brazil Evolution of world sugar cane production from 1990 to 2007 Brazil is the biggest sugar cane producer, with a production 45% larger than the second biggest producer Source: Brasil. Ministério da Agricultura, Pecuária e Abastecimento. Anuário estatístico da agroenergia / Ministério da Agricultura, Pecuária e Abastecimento. – Brasília : Mapa/ACS, 2009. 160 p.

10. Overview of sugar cane and ethanol production in Brazil Comparison between Brazilian and American ethanol production Brazil was the biggest ethanol producer until 2006, when USA took the first place after a continuous period of intensive increase in production via stimulus of corn ethanol Source: Brasil. Ministério da Agricultura, Pecuária e Abastecimento. Anuário estatístico da agroenergia / Ministério da Agricultura, Pecuária e Abastecimento. – Brasília : Mapa/ACS, 2009. 160 p. ; RenewableFuelsAssociation,: http://www.ethanolrfa.org/industry/statistics/#E

11. Overview of sugar cane and ethanol production in Brazil Sugarcane national agro-ecological zoning The already impressive figures of Brazilian production does not show the real potential for ethanol production. This map shows the agro-ecological zoning of Brazil, which defines the areas where production can be extended to. This figure clearly shows that an increase in production and planted area does not mean degradation of protected biomes like Amazon and Pantanal. Source: http://blog.planalto.gov.br/wp-content/uploads/2009/09/mapabrasil.jpg. Acessed in February/2010

12. Overview of sugar cane and ethanol production in Brazil Energy balance of sugarcane bioethanol production in Brazil (MJ/tc) The most exciting characteristic of sugar cane production in Brazil is its energy ratio. This outstanding result is partially obtained by the use of bagasse as source of energy for processing sugar cane and more recently for generating electricity connected to the grid in cogeneration plants * Source: Sugarcane-based bioethanol : energy for sustainable development / coordination BNDES and CGEE – Rio de Janeiro :BNDES, 2008.

13. Energy OutlookTotal Primary Energy Production BRAZIL WORLD Renewables: 12,7% Renewables: 46,0% Source: “BrazilianEnergy Balance 2009 ; IEA

14. Energy OutlookElectricity generation by source +300% The planned increase in oil fired thermal power plants stems from the necessity of higher stability and supply security, due to the dependence of reservoirs levels and rain regime. Source: ONS; IEA

15. Energy outlookBiomass cogeneration can be an alternative to this situation… The graph shows the anti-cyclical pattern of bagasse cogeneration in Brazil. The peak of production occurs during the harvest, exactly during the dry season when the reservoirs reach the lowest level. Source:Castro, N.; Brandão; Dantas, G. A.; Timponi, R.R.; Oportunidades de Comercialização de Bioeletricidade no Sistema Elétrico Brasileiro. 2009

16. Energy outlook… with possibility to generate energy equivalent to Itaipu in less than 10 years 10.158 1 “Itaipu-equivalent” Studies of UNICA* shows that the increase of production and the use of straw can provide in 2017/2018 “another Itaipu” (around 10.200 MW av.) in biomass cogeneration Source: JANK, M.S.Bioeletricidade de cana-de-açúcar - Integração na matriz elétrica e oportunidade de Oferta e cenários para 2010 e 2011 * UNICA = BrazilianSugarcaneIndustryAssociation

18. Inflexibility and predictability of generation contribute to maintenance of reservoir levels during dry stations of the year

19. Each 1.000 MWav. added in a given period saves up to 4% of reservoir levels (*)

20. Construction time of new projects is much smaller when compared to big sized hydro power plants

21. Location of sugar cane production (and thus the biomass generation) is close to the main load ( southeast region of Brazil)

22. Increase in biomass minimize the use of emergency oil fired plants in peaks of demand

23. Each 1.000 MWav. added in a given period avoids R$ 25 million to the Brazilian interconnected system (*)* Source:Silvestrin, C. A. A Bioeletricidade na Expansão da Oferta de Energia Elétrica; Fórum APINE – CanalEnergia Abastecimento Energético 2008 - 2009

25. Owner: Cosan

26. Total crushing capacity: 4 MTPY

27. Total Electricity Generation: 100MW

29. Case StudyState-of-the-art cogeneration and ethanol production unit Mar/2008

30. Case StudyState-of-the-art cogeneration and ethanol production unit JUL/2008

31. Case StudyState-of-the-art cogeneration and ethanol production unit Mar/2009

32. Case StudyState-of-the-art cogeneration and ethanol production unit

33. Case StudyState-of-the-art cogeneration and ethanol production unit

34. Case StudyState-of-the-art cogeneration and ethanol production unit

35. Case StudyState-of-the-art cogeneration and ethanol production unit

36. Case StudyState-of-the-art cogeneration and ethanol production unit

38. Peak of manpower: 2700 peopleEngineering documents: 1700

39. Suppliers documents: 8500

40. Volume of concrete: 25.000 m³

41. Piles: 41,000 m

42. Built area (buildings): 12.500 m²

43. Equipments: 310

44. Process Lines: 1.500

45. Piping: 2,000 tons

46. Steel structure: 1.900 tons

47. Cables: 175.300 m

48. Instruments: 2.000Case StudyState-of-the-art cogeneration and ethanol production unit

50. VignasseMethanization

52. Mechanization of the harvest provides straw as a by-product

53. Straw is lighter and dryer and has a higher Heat of Combustion than bagasse -> ΔHstraw = 1.7 ΔHbagasse

54. Mixtures of 10% to 20% of straw in mass with bagasse can be used in current boilers without affecting the performance nor the lifespan of the equipment -> this can provide 30% more energy using the same installation (i.e., bagasse can be stored for inter-harvest periods)

55. The challenges for straw utilization in larger scale are:

56. Development of appropriate separation systems

57. Development of specific transport and mixing systems:

59. Vignasse is the biggest effluent of an ethanol facility.

60. Even when it can be used for fertirrigation, concentration of salts in the long run depletes the quality of the soil

62. Methanization in anaerobic biodigesters seems to be one of the most promising treatment technologies:

63. Produces biogas and solid material that can be used as organic fertilizer

64. Biogas produced can be used as supplementary source of energy

65. The challenges for methanization development are decrease of cost of drying and higher productivity of bioreactors.* Source: Olivério, J.L. Upgrading and modernizing onsite generarion facilities. Cogeneration Brazil 2009. Dedini

67. Bagasse and straw gasification can be a breakthrough in terms of improvement on electricity generation and overall efficiency

69. operation of high capacity pressurized gasifiers

70. gas cleaning and separation of alkali and particulates from the gas produced

71. modification of gas turbines for using gas with low caloric power obtaining a performance comparable to turbines that burn natural gas

72. significant reduction of capital costs through the learning effect* Source: Chang, K. K. W., Wing, A. L. A., Hoi, L. W. S.. Bagasse gasification technologies for electricity production in the sugar industry. Mauritius Sugar Industry Research Institute, Réduit, Mauritius

74. Biogas produced is burned and bagasse is saved for inter-harvest

76. ΔHstraw = 1.7 ΔHbagasse

77. Mixture of 20% in mass of straw and bagasse

79. Operation of gasification is stable

80. Efficiency of gas turbine is comparable to current gas turbinesSTEP 3 Gasification AFTER STEP 3 Total output: 161mw

81. André Martins de Martini andre.martini@promon.com.br www.promon.com.br São Paulo BR Rio de Janeiro BR Av. Pres. Juscelino Kubitschek, 1830 04543-900 São Paulo - SP Praia do Flamengo, 154 22210-906 Rio de Janeiro - RJ CONFIDENTIAL– This document contains confidential information with restricted access and ownership or possession of Promon SA, or any of its subsidiaries or affiliates, and are protected by applicable law against disclosure. The possession, display, disclosure, distribution or unauthorized use of of this document is strictly prohibited.