The document summarizes the work of the Inter-American Development Bank (IDB) in supporting biofuels projects in Latin America and the Caribbean. The IDB has provided over $230 billion in loans and investments for the region. It specifically supports biofuels to promote sustainable development, job creation, environmental benefits, and innovation. Examples include lending $269 million for three Brazilian ethanol plants in 2008 and $25 million for a Peruvian biofuel and electricity project in 2009. The IDB also supports the development of sustainable aviation biofuels through projects assessing feedstocks and sponsoring demonstration flights in Brazil.

1. Arnaldo Vieira de Carvalho
Inter-American Development Bank – IDB
Energy Division
Infrastructure and Environment Department
Washington, DC
arnaldov@iadb.org; +1 202 623 1719
Workshop on Biofuels and Food Security Interactions
International Food Policy Research Institute
November19-20, 2014
Financing Biofuels in Latin America and
the Caribbean

2. Inter-American Development Bank - IDB
• Oldest regional development bank (1959): 48 member countries - 26 borrowers (with >50% votes
in the Board); HQs in Washington, DC, offices in all borrowing countries; finances both private and public sector
projects, with or without sovereign guarantees. The IDB Group encompasses 3 institutions: the Inter-American
Development Bank, the Inter-American Investment Corporation – IIC and the Multilateral Investment Fund - MIF.
Note: * Latin America and the Caribbean
• Main source for LAC* regional financing
 Approved loans/guarantees: US$230 billion (US$12 billion/y)
 Overall leveraged investments: US$500+ billion
 Non-reimbursable technical cooperation: US$ 6 billion (US$800 million/y)
• 25% of portfolio now directed to climate change & clean energy
www.iadb.org

3. Source: WEO 2014, IEA, November 12, 2014
Latest Global biofuels forecast

4. Why should IDB support biofuels?
• As a development institution the Bank has a mandate
to support investment programs in LAC that:
 Contributes in a relevant way to sustainable social and economical
development of its Member Countries
 Reduce poverty and create jobs
 Provides longer-term environmental benefits and mitigate climate change
 Promotes sustainable rural development
 Improve competitiveness, foster capacity-building, technology development and innovation
 Optimize use of human and natural resources of its Member Countries
 Stimulate public-private partnerships, among others

5. www.iadb.org/biofuelsscorecard
IDB Scorecard for Sustainable Biofuels

6. Press Contact
Patricia Rojas
patriciaro@iadb.org
(202) 623-1373
The Inter-American Development Bank will lend $269 million for three new ethanol plants in south-
central Brazil, in the largest biofuel investment ever made by a development bank. The Board
of the Bank unanimously approved the financing today.
The three plants are being developed by Companhia Nacional de Açúcar e Álcool (CNAA), a joint
venture formed by Brazilian sugar producer Santelisa Vale, U.S. private equity firms and Global
Foods, a holding company registered in the Netherlands Antilles...
Press Release
July 23, 2008
IDB lends $269 million for three Brazilian ethanol plants
Inter-American Development Bank – IDB
Press Release
December 15, 2009
Peru Biofuel project to receive US$25 million
Inter-American Development Bank – IDB
Combined ethanol refinery, sugar plantation and electricity plant will generate
500 permanent jobs for local communities in the Department of Piura, Peru.
An initiative of Maple Energy Plc, an energy company that has focused solely on Peru since 1994,
listed on the London Stock Exchange’s Alternative Investment Market and on the Lima Stock
Exchange. The project is known as Maple Etanol, requires a total investment
of $245.5 million and will receive assistance from Netherlands ……

8. Examples of grant support to biofuels
- US-BR MOU: Haiti, Guatemala and Honduras
and DR Phase II to evaluate specific projects
- Mesoamerican Biofuels Network
- 2nd
Gen Biofuels in Chile (Consorcio ForEnergy)
- support to most LAC countries on biofuels

9. 2010 2020 2030
1.00
RelativeCO2increase
growth (w/ no improvement)
carbon-neutral growth 2020+
alternative fuels fill the gap,
together with market tools
w/ aircraft technology improv.
w/ operational improvements
1.50
Aviation committed to carbon-neutral
growth
ASTM D7566 approved in Sept 2009 synthetic fuels for aviation (for the 1st
time), and in July 2011 established requirements for renewable sources.
2040
50% by 2050, with
respect to 2010

10. Approved

11. 11
 1st
activity: Life cycle assessment of Carbon emissions during the
production and utilization of biojet fuel from sugar cane (DSHC): 82%
reduction on carbon emissions; and Benchmarking of Biofuels
Sustainability Standards co-financed with Embraer and Boeing
IDB Initiative for Sustainable Aviation
Biofuels

12.  Support demonstration (experimental)
flights with Azul Airlines (1st
ever with
DSHC) during Rio+20
IDB Initiative for Sustainable Aviation
Biofuels
and GOL (as part
of ICAO Flightpath) using different
feedstocks.

13.  Brazil’s first commercial biojet fuel flight, CGH-BSB on October 24th
, 2013,
following approval of Resolução ANP Nº 20; DOU 25 June 2013 for HEFA
IDB Initiative for Sustainable Aviation
Biofuels

14. 365 biojet fuel flights
during World Cup
between host cities and
support to MG/
Brazilian/Panamerican
Biojet fuel Platforms
See video: http://www.iadb.org/en/topics/energy/se4allamericas/renewables,17688.html

15. 1st
commercial flight using
sugarcane-derived biojet fuel:
July 30, 2014

16. • Example of technical assistance for ANAC: MIATA
computations at airport level for national goal of 15% biojet fuel
penetration in domestic operations (assuming 40% maximum blend
at a single airport: operations in top 4 airports would be sufficient)
Rank Airport Share of
domestic
jet fuel use
Maximum share of alternative fuel
from airport total use
40% 30% 20%
1 SBGR-Sao Paulo 14% 40% 30% 20%
2 SBBR-Brasilia 10% 40% 30% 20%
3 SBSP-Cong. 7% 40% 30% 20%
4 SBGL-Rio 7% 37% 30% 20%
5 SBKP-Viracopos 5% 30% 20%
6 SBRF-Recife 5% 30% 20%
7 SBSV-Salvador 5% 9% 20%
8 SBCF-B. Horiz. 5% 20%
9 SBRJ-Rio SD 4% 20%
10 SBFZ-Fortaleza 4% 20%
11 SBPA-P. Alegre 4% 20%
12 SBCT-Curitiba 3% 20%
13 SBBE-Belem 3% 17%
14 SBEG-Manaus 3%
15 SBCY-Cuiaba 2%
IDB Initiative for Sustainable Aviation Biofuels

17. • Feasibility study of the first HEFA commercial plant for production of
biojet for ASA of Mexico. Two alternatives were contemplated:
processing 2,000 and 6,500 barrels per stream day (bpsd) of refined
vegetable oil.
IDB Initiative for Sustainable Aviation Biofuels

18.  Study on Camelina in Argentina:
feasibility of cultivation in marginal
areas in south of the country,
includes analysis of economic,
social and environmental issues.
IDB Initiative for Sustainable Aviation Biofuels

19. 1919
SE4ALL Global Initiative

21. THANK YOUTHANK YOU