[USDA Global Conference on Agricultural Biofuels: Research and
Economics]{.smallcaps}

**international perspectives**

**session B**

[Non-food feedstock and the road map of China's bioethanol
industry]{.smallcaps}

Shi-Zhong Li

Institute of New Energy, Tsinghua University

Beijing, PR China

Given China's ongoing economic growth and associated growth in energy
demand and environmental degradation, the maintenance of social and
ecological sustainability requires the development and utilization of
alternative renewable energy sources. The development of bioethanol
technology for transportation is of great importance in this
perspective. In this paper, how to produce ethanol from non-food
feedstock should be emphasized, and a road map for bioethanol in China
is presented. The central challenge is to produce sufficient feedstocks
without disrupting current production of food and feed as well as forest
products. Cassava, sweet sorghum and lignocellulose will be ideal
options at different stages to produce ethanol cost-effectively.

Currently, ethanol from starch is a mature technology, hence tuber
crops, such as cassava, sweet potato, etc. can be used as feedstock to
produce ethanol, and cassava is an ideal option, since it doesn't threat
food safety. The potential of ethanol from tuber crops is more than 10
million tons.

Sweet sorghum is an emerging feedstock. With its outstanding features of
high biomass production yield, high sugar content and high tolerances to
waterlogging, draught, salty and alkalinity, sweet sorghum should be an
alternative feedstock to grain or sugarcane. However, sweet sorghum
ethanol has not been commercialized till the technological breakthrough
made by Tsinghua University. For seasonal reason, it's difficult to
produce ethanol from fresh sweet sorghum juice like sugarcane ethanol in
brazil, US and India try to overcome the technical hurdle for dozen of
years. In China, a novel solid state fermentation technology for the
production of ethanol from sweet sorghum stalk has been developed by
Tsinghua University. An excellent ethanol producer can convert
fermentable sugars in stalk in only 44 hours with the yield of more than
94% of theoretical, mush shorter than the fermentation time of corn
ethanol (normally 48-60hours),and a rotary drum solid state fermentor
can improve the fermentation process to cost-effectively produce
ethanol. 10 million tons of ethanol should be produced during 2008-2015
without concern about food security and land requirements.

Meanwhile, ethanol can be co-produced with furfural and xylose. Normally
hemicellulose in lignocellulose is hydrolyzed to produce xylose and
furfural, and cellulose in dregs can be decomposed to glucose by
cellulase to produce ethanol. 1 million tons of ethanol can be produced
from this kind of industrial biomass waste.

For the long-term goal, ethanol can be cost-effectively produced from
lignocellulose such as crop residues, forest residues and grasses etc in
the post 2015 with respect to the improvement of converting cellulose to
ethanol technology. An innovative technology named SMEHF derived from
Tsinghua University can cost effectively produce cellulosic ethanol.
SMEHF means Simultaneous Multi-enzyme Synthesis and Hydrolysis and
Separate Fermentation, including

> 1\) To pretreat lignocellulose by a bio-chemical method, i.e. the
> combination of dilute acidic hydrolysis assisted by molecule vibration
> and a consortium of microorganism to decompose lignin partially. This
> novel method will expose more cellulose surface to benefit the
> adsorption of cellulases.
>
> 2\) To hydrolyze cellulose by a consortium of fungi which can produce
> more cellulases to breakdown cellulose into glucose. The hydrolysis
> time can be shorten from 72 hours to 48 hours. The idea is from
> Traditional Chinese Medicine, different cellulases can synergically
> decompose cellulose.
>
> 3\) To improve ethanol producer through genetical modification: to
> modify the abilities of *Zymomonas mobilis*

[Shi-Zhong Li Ph. D]{.smallcaps}

Dr. Li is a full professor and deputy director of the Institute of New
Energy Technology, Tsinghua University, and chairs New Energy Lab., the
member of eleventh-five year National Bioethanol Program Office. Before
he got his current post, he was the deputy director of Center for
Biomass Engineering, China Agricultural University (2004-2005). He also
worked in Engineering Science Department, the University of Oxford as a
research fellow (2003-2004), in Civil Engineering Department, the
University of Hong Kong as a Research Associate (2000-2002). He was an
Associate Professor in Chemical Engineering Department, Tianjin
University until 1999.

Dr. Li focuses his research interests on biotechnology and engineering
for biomass utilization, especially on bioenergy technologies for the
production of bio-fuels and bio-based products. He has developed a novel
technology to utilize plant biomass cost-effectively, such as cellulosic
ethanol and L(+)-lactic acid from crop residues, fuel ethanol from sweet
sorghum stalk via solid state fermentation.

**[Current Status of Research and Development on Jatropha (Jatropha
curcus) for Sustainable Biofuel Production in India]{.smallcaps}**

Dr. M.S. Punia, Executive Director

National Oilseeds and Vegetable Oils Development Board

Ministry of Agriculture -- India

India ranks sixth in the world in terms of energy demand. Its economy is
projected to grow 8-9 percent over the next two decades and there will
be a substantial increase in demand for oil to manage transportation and
other energy needs. While India has significant reserves of coal, it is
relatively poor in oil and gas resources. Due to stagnating domestic
crude production, India imports approximately 72 percent of petroleum
products to meet its requirement. The annual requirement of petroleum
products of the country is approx. 124 MMT. Our domestic production of
crude oil and natural gas is about 34 million tones during 2006-07.
Among various petroleum products, being developed from crude oil, diesel
is being consumed maximum (52 MMT) for transport of industrial and
agricultural goods and operation of diesel driven tractors and pump sets
in agricultural sector. The current demand for petrol is about 10 MMT.
The depletion of available vital fossil fuel resources and our over
commitment to use the fossil fuels is likely to lead us to the energy
crisis situation in the years to come. The demand for diesel is likely
to touch 66 million tonnes in 2011-12 and 80 million tons in 2012-15.
Contrary to the demand situation, the domestic supply is in position to
cater to only about 30% of the total demand. Therefore, attempt needs to
be made to reduce dependence on imports and seek better alternatives.

The best alternatives are bio-fuels (Biodiesel and bio-ethanol
substitute for diesel and petrol, respectively). Among bio-fuels,
bio-diesel is gaining worldwide acceptance as a solution to energy
crisis. At present, India is using 80 per cent diesel (52 MMT) and 20 %
petrol (9.6 MMT) driven vehicles. It is possible to blend 20 per cent
bio-diesel with petro-diesel and ethanol with petrol without any
modification in the engine. It is estimated that 5%, 10% and 20%
blending of bio-diesel will require 2.62, 5.23 and 10.47 MMT of
bio-diesel considering 52.33 MMT demand during 2006-07.

**Jatropha** is one of the most potential source of biodiesel production
on sustainable bases in India. Jatropha contain 30-40 % oil (non-edible)
that can be transformed into biodiesel through the process of
trans-esterification. It can grow in arid and semi-arid regions,
tropical and subtropical areas of the country and grow even on barren
and wastelands, degraded soils having low fertility and moisture but can
not with stand heavy frost. The Jatropha plant once planted in the
field, starts fruiting after 2 years and continues up to 30-40 years.
Therefore, the freshly harvested seeds from the identified quality
planting material having desirable characteristics like high seed yield,
high oil content in seed, synchronized maturity, resistant to insect,
pests and diseases etc. should always be used for raising of nursery.
The genus *Jatropha* belonging to Euphorbiaceae family, is a diploid
with chromosome number (2n) 22, contains about 175 species in the world.

**Status of Jatropha Research and Development in India**

The country has 168 million ha. arable land area out of its 328.73
million ha. geographical area. There is about 63 million ha. wastelands
in the country, out of which about 40 million ha. area can be developed
by undertaking plantations of Jatropha in 23 states of the country. The
necessary efforts are being made for promotion of Jatropha. National
Oilseeds and Vegetable Oils development (NOVOD) Board (Ministry Of
Agriculture, Govt Of India) has established a model plantation on 10083
ha on Govt. farms in 21 states of the country which will be utilized as
a parental seed material for expanding area under Jatropha to the tune
of 2.5 m ha in the country sufficient for 5 % blending of bio-diesel by
2011-12. An area of about 0.3 m ha has already been planted under
Jatropha in the country. In order to address various researchable issues
for Integrated development of tree borne oilseeds including Jatropha,
NOVOD Board has constituted a network of 40 institutions for Jatropha
research by involving State Agricultural Universities (SAUs),
Institutions of Indian Council of Agricultural research (ICAR), Council
of Scientific and Industrial Research (CSIR), Indian Council of Forest
Research and Education (ICFRE), The Energy and Resources Institute
(TERI) and Indian Institute of technology ( IIT), etc. The program is in
operation since 2004-05 with the enthusiastic results. The highlights of
the work undertaken by the centres are:

-   **Genetic Improvement in Jatropha:** Germplasm has been collected
    all over the country and introduced from abroad. 1855 candidate plus
    trees (CPTs) of Jatropha have been identified from a collection of
    over five thousand accessions by various institutions. After
    collection of seeds from CPTs/potential seed sources, progeny trials
    were established by different centers. The seed material of the
    genotype having unique traits have been conserved/ preserved in
    National Gene Bank at NBPGR and analyzed for oil content by TERI.
    The oil content varies from 26.0 to 42.70%.

-   **Varietal Development:** Jatropha being cross pollinated plant, 15
    open-pollinated varieties have been developed using mass selection
    and recurrent selection methods by growing them in isolation, are
    under testing in the National Trail II at 14 locations of the
    country. Multi-locational/National/Zonal trials have been conducted
    to evaluate and screening of best genotypes having outstanding
    performance under different agro-climatic conditions is under
    progress. After obtaining the required data on seed yield, oil
    content and oil quality, disease and insect pest resistance
    resistance, the best perfoming genotypes will be released as a new
    varieties of Jatropha by adopting the standard procedure.

-   **Hybridization in *Jatropha curcas:*** Attemps were made to develop
    intra and inter-specic hybrids.Crosses of *Jatropha curcas* x
    *Jatropha integirrima* were made & F1 population was obtained.
    Thirty nine hybrid clones were evaluated, which showed wide
    variation in their morphological traits. Reproductive biological
    studies were undertaken in all hybrid clones and also carried out in
    *Jatropha glandulifera* for further hybridization program. The cross
    compatibility study among different Jatropha species were conducted.
    Five species of Jatropha were crossed in all possible combinations.
    However, due to apomictic nature (fruit development without
    fertilization) of *J. podagrica* and *J. multifida*, they were not
    used as female parent but their pollen from male flowers were used
    for pollinating the other species. The preliminary results of this
    study showed that four species viz. *Jatropha curcas*,
    *J.gossyfolia, J. multifida* and *J. podagrica* were found cross
    in-compatiable to each other. However, the crosses were successful
    when *J. multifida* was used as male (♂) and *J.curcas* as female
    (♀) parent. A strong reciprocal compatibility was also found between
    *J. curcas* and *J.integerrima* and successful hybrid plants were
    developed.

-   **Mutation breeding** using chemical and physical mutagens have been
    initiated to creat genetic variation for various traits. Mutants
    have been developed and are being characterized using DNA markers.

-   **Tissue culture** protocols for mass multiplication and gene
    transformation are under progress.

**Agri-sulvicultural Trials** were established and encouraging results
have been obtained without affecting the growth of Jatropha. The crops
i.e., sunflower, groundnut, wheat, tomato moongbean, urdbean, sunhemp,
mothbean, cowpea, etc. were undertaken as inter-crops in Jatropha.
Experiment are in progress under different agro-climatic conditions both
under rainfed and irrigated conditions for developing cultural/package
of practices like optimum requirement of Jatropha for irrigation,
fertilization, spacing, weed control, management of insect-pest and
diseases, abiotic stresses and cost economics etc. **Post harvest**
equipment has been developed including seed decorticator, oil-expeller,
trans-estrification etc. The post harvest technology is being refined.
**Value addition** protocols related to jatropha seed cake
detoxification is almost at the verge of development. **Cost of
biodiesel** production has been worked out using jatropha seeds as a
feed stock.

**Some Important Research Findings**

Jatropha can be propagated both by seeds and cuttings. February-March is
the best period for planting nursery, and July-August (rainy season) for
transplanting in the field. A spacing of 2 x 2 m was found to be optimum
for waste lands and rainfed conditions while 3 x 2 m was better for
irrigated conditions. Jatropha is high sensitive to frost and could not
tolerate -- 3°C temperature for survival, hence, do not grow Jatropha in
frost affected areas. Jatropha can be cultivated in any type of soils
subject to pH up to 9.5 and minimum 2 ft. soil depth. Jatropha cannot
tolerate waterlogging conditions as it attracts collar rot disease.

The goal is to enable communities in rural India to develop alternative
energy options that will help to promote sustainable livelihoods in the
region. In this respect switching from Fossil Fuels or other Green House
Gas (GHG)-emitting sources to renewable sources of energy makes sense
for the climate, the environment and sustainable society. The cost of
bio-diesel is the most important aspect of promotion of Jatropha for
bio-diesel production in the country, being eco-friendly, easy to
produce raw material, easy oil extraction and trans-esterification. The
organized plantation and systematic collection of Jaropha oil, being
potential bio-diesel substitutes will reduce the import burden of crude
petroleum substantially. The emphasis should be made to invest in
agriculture sector for exploitation of existing potential by
establishing model seed procurement centres, installing preprocessing
and processing facilities, oil extraction unit, trans-esterification
units etc. There is also need to augment the future potential by
investing largely on compact organized plantation of Jatropha on the
available wastelands of the country. This will enable our country to
become independent in the fuel sector by promoting and adopting bio-fuel
as an alternative to petroleum fuels.

[Mohinder Singh Punia]{.smallcaps}

[Biography]{.smallcaps}

Dr. Punia has more than  25 years of research , teaching and
administrative experience, worked in CCS Haryana Agricultural
University, Hisar (India) from 1982 to 2006 as a Professor of Plant
Breeding (now on deputation). He is presently working as an Executive
Director for the National Oilseeds and Vegetable Oils development
(NOVOD)Board, Ministry of Agriculture, Govt. of India, Gurgaon, Haryana
(India) since Novermber 2006. He has developed: 1) eight varieties of
different field crops which have been released for general cultivation
in Haryana and other states of India; 2) protocols for tissue and
protoplasts cultures for plant regeneration of sunflower and other
oilseed crops; and 3) several CMS, maintainer and fertility restorer
lines of sunflower. As Chief Executive of the NOVOD Board, he is
currently implementing a scheme on Integrated development of Tree Borne
Oilseeds (TBOs) in the entire country specially on the plants like
Jatropha and Pongamia pinnata for biodiesel (biofuel ) production apart
from other TBOs. This programme includes Research & Development through
a  National Network of 45 institutes in India, transfer of technology,
commercial plantation at government farms land, production , processing,
marketing aspects, etc.

**BIOFUEL DEVELOPMENT IN INDONESIA**[^1]

Ms. Yanni Kussuryani

Coordinator, Process Technology Research Programme Group

Research and Development Centre for Oil and Gas Technology

Department of Energy and Mineral Resources

Republic of Indonesia

**Introduction**

Regarding to the situation lately that the resources of oil and other
fossil energy is depleting, Indonesia is urged to look for other sources
of energy, especially renewable energy. Through Presidential Decree No.
5 Year 2006 on National Energy Policy, The Government of Indonesia set
out National Energy Mix 2025 in which the role of oil will be reduced
from more than 50% now until only less than 20% in 2025, whereas
renewable energy will begin to play an important role and biofuel will
supply 5% of total energy mix. In order to optimize biofuel development,
The Government of Indonesia established Presidential Instruction no 1
Year 2006 on Biofuel Supply and Utilization as an Alternative Energy and
Presidential Decree no 10 Year 2006 on establishment of National Team on
Biofuel Development.

**Strategy of Biofuel Development**

A Fast Track Program on biofuel development has become the main
strategy, that is to create energy self sufficient village, to support
regional government in developing biofuel and to open special biofuel
zone for the large scale of biofuel development. In the special biofuel
zone, the Government will provide land area and basic infrastructures.
However, investors must develop among others: demonstration plot,
explicit investment/employment ratio and on time schedule to meet the
target. With this strategy, we hope in the short run there will be job
creation and poverty alleviation, while in the long run we can secure
our energy supply and economic growth.

The main feedstock for biodiesel development are palm oil and Jatropha
curcas, meanwhile cassava and sugar cane are utilized as main feedstock
for bioethanol. However, since Indonesia is also endowed by high
diversity, in the meantime we develop other potential feedstock.

From environmental aspects, the development of biofuel will not disturb
the environment since Indonesia is using unused land for biofuel
plantation, so that the biodiversity will not be disturbed.

**Target of Biofuel Development**

In the meantime, the Government of Indonesia has set out midterm targets
on 2010. Job creation for 3,5 million unemployment has become the first
target, followed by increasing income for workers in biofuel sector.
Development of 5,25 million unused land for biofuel plantation, 1000
energy self sufficient villages and 12 special biofuel zone are also the
target. 10% fossil fuel reduction and accomplishment of biofuel domestic
and export demand are the other targets that Indonesia wants to achieve.

According to the Road Map of Biofuel Development, at the end of 2010
biofuel utilization will reach 2% of national energy mix, approximately
5,3 million kL. By the end of 2015, biofuel utilization will reach 3% of
energy mix or 9,8 million kL and at the end of 2025, in accordance with
Presidential Decree no 5 Year 2006 on National Energy Policy, biofuel
utilization will be 5% of energy mix, approximately 22,3 million kL.

**Progress of Biofuel Development**

Until now there are some progresses on biofuel development in Indonesia.
Beside the Blue Print and Road Map that have already established by the
National Team on Biofuel Development, bioethanol and biodiesel have
already been on market. Bioethanol whose brand is Bio-Premium has been
sold in Malang, and bioethanol which is branded Bio-Pertamax with higher
octane number has been sold in 5 gas stations in Jakarta. Biodiesel that
is well known as Bio-Solar has also been sold in 201 gas stations in
Jakarta and 15 gas stations in Surabaya. Bio-Premium, Bio-Pertamax and
Bio-Solar are produced by State Owned Oil Company (PERTAMINA).

Energy Self Sufficient villages have already started to produce biofuel.
Today, on top of ongoing investments, we have received commitments from
58 investors to invest on biofuel development at about US\$ 12 million.

At present, Indonesia has three fuel grade bioethanol producers with
total capacity 82.500 kL/year. Until 2010, there will be additional
production of fuel grade bioethanol at about 2,7 million kL/year.
Indonesia has also eight biodiesel producers whose total production
capacity is 520.000 kL/year. Until 2011, there will be additional
production up to 2 million kL/year using three different technologies
(trans-esterification, green diesel, hydrogenation and cracking). The
State Owned Electricity Company (PLN) has also started to utilized
biofuel in 24 power plants within seven locations at a total capacity of
about 70 MW.

[Yanni Kussuryani, M.Sc.]{.smallcaps}

[Biography]{.smallcaps}

Dra. Yanni Kussuryani, M.Si is a researcher at the Research and
Development Center for Oil and Gas Technology \"LEMIGAS\", The Agency
for Research and Development of Energy and Mineral Resources, Department
of Energy and Mineral Resources Republic of Indonesia. LEMIGAS has
conducted research on biodiesel since 1996 and currently has a mini
biodiesel pilot plant with a capacity of 150 liters per day, and a
larger pilot plant with a capacity of 10 tons per day.

**TECHNOLOGICAL PROGRESS AND COMMERCIALISATION**

**OF BIODIESEL IN MALAYSIA**

MOHD BASRI **WAHID**, CHOO Y.M., AND LIM W.S.

Malaysian Palm Oil Board (MPOB)

Selangor, Malaysia

Two important criteria for any vegetable oil to be used as biofuel are
availability at a competitive price and sustainability of production.
Malaysian palm oil meets these criteria. The development of the oil palm
industry in Malaysia has been remarkable. Malaysia has become the
largest producer and exporter of palm oil products in the world. The
advantage which palm oil holds over other oils and fats is in its
productivity, yield and efficiency of production. Oil palm is the most
productive oil bearing plant species known. This yield factor makes palm
oil most competitive in meeting the expanding demand for greener and
cleaner energy for the global growing population.

Malaysia through MPOB initiated the palm biofuels R&D program in 1982.
MPOB patented a process for the pre-treatment and production of
biodiesel from palm oil which was scaled up to a 3,000 tonnes per annum
continuous pilot plant in 1985. The biodiesel produced from this pilot
plant was used in various field trials and the most comprehensive and
exhaustive one was conducted in collaboration with Mercedes Benz of
Germany. Results showed that the biodiesel produced was suitable for use
in diesel engines, whether in neat form or blended with diesel.

The increasing demand of palm biodiesel from EU in 2004 prompted MPOB to
scale up its production technology to a commercial plant. Since then,
three commercial plants (60,000 tonnes per annum capacity) using MPOB's
technology have been commissioned and are in operation, producing
biodiesel for the global biodiesel market. Another four such plants are
under construction. One of the limitations of palm biodiesel is its high
cold filter plugging point (CFPP +15 ^o^C). MPOB has overcome this
limitation by developing a process for the production of low CFPP
biodiesel (0 to -21^o^C) for export. Three commercial plants each with
an annual capacity of 30,000 tonnes per annum have been built and one is
already producing low CFPP palm biodiesel commercially in Malaysia.

Palm oil is very unique and the resulting palm biodiesel produced by
MPOB's patented process contain two very high-value components, i.e.
carotenoids and vitamin E. MPOB has successfully developed processes to
recover these valuable products. It is estimated that, if the carotenes
and vitamin E are recovered, the income generated from the sales of the
carotenes and vitamin E recovered will able to pay for the investment.

Malaysia's National Biofuel Policy was released in March 2006. Among the
thrusts of the policy are the production of palm biofuel for export, the
use of palm biofuel blended with diesel in the country and the promotion
of home-grown biofuel technologies.

To date, manufacturing licenses for 92 biodiesel plants with feedstock
capacity of over 10 million tonnes per annum have been approved. Of
these, 4 plants are already in operation and another 4 plants have
completed construction but have yet to commence commercial operation.
Virtually all the biodiesel produced are exported, mainly to the EU and
USA.

Local use of biodiesel blends have yet to be implemented. A new law, the
Biofuel Industry Act 2006 was passed in Parliament which inter alia
contains provisions to mandate the blending of biofuel with diesel in
the country. This mandatory blending is targeted for implementation in
2008.

Local mandatory use of biofuel blended with diesel have not taken off
commercially as MPOB is carrying out no-harm tests and field trials to
see if refined, bleached and deodorized palm olein can be used as the
blending component instead of biodiesel methyl ester. The results of
these tests should be out by end 2007.

It has been reported that GHG emission reductions from palm oil
(Malaysia/Indonesia) is 60-80%, corn (US) 5-30%, sugar beet (EU) 22-50%,
wheat (EU) 22-68%, rapeseed (EU) 43-58%, and sugar cane (Brazil) 85-95%.
The variations in GHG emission reductions are due to lack of standards
for the setting up of boundaries for the Life Cycle Assessment studies.
MPOB is in the midst of conducting LCA studies on the whole palm biofuel
production chain.

[Dr. Mohd Basri Wahid]{.smallcaps}

[Biography]{.smallcaps}

Dr. Wahid is the Director General of the Malaysia Palm Oil Board (MPOB)
and the Chairman of Palm Biofuel Committee in MPOB. The committee is
responsible for overseeing the implementation of biofuel activities of
MPOB. He is involved in overseeing the development and construction of
MPOB biodiesel demonstration plants, tests and field trials on
diesel/biofuel blends. He contributed to the formulation of Malaysia's
National Biofuel Policy, the Malaysian Biofuel Industry Act 2006 and
their implementation.

# Bioenergy value chain construction methodology

Miguel Almada and Martín Fraguío.

[Introduction:]{.underline}

The following lines describes the methodology utilized by MAIZAR- The
Argentine Corn Association to develop and enhance the competitiveness of
the Argentine corn value chain, from research, supplies, farmers to
exports or beef, poultry, starch or ethanol, etc. Due to the importance
the corn value chain has in the new world of biofuels and renewable
energy, the same methodology is proposed as a general approach to
encourage communities to develop more sustainable sources of energy
starting from grassroots level and moving up.

[Structure and Strategy of a value chain:]{.underline}

Bioenergy can serve to develop and motivate from the farthest most
isolated regions to the most central and sophisticated actors of a
society.

It is crucial to work with each and every one of the actors of each link
of the value chain and develop new cultural habits and social and
professional capacities in them.

The following links are proposed in the creation of this new value
chain, other stakeholders are seen in the diagram:

![](media/image1.png){width="5.7362204724409445in"
height="0.3952755905511811in"}

**[Capacities essential to the construction of a bioenergy value
chain:]{.underline}**

1\. Sense of belonging.

The only way to plan and create a new reality is by assuring that each
actor assumes his role as part of his community, town, etc. Therefore
the initial step in the creation of this value chain is to have all
actors strongly linked to the reality they live and the need to improve
it. Opposed to the idea that solutions belong to the sphere of a higher
authority and will "come from above".

This is important in countries like Argentina that have suffered
economic and social crises that have divided communities and no group
wants to be associated with failure and defeat, while most feel that the
other group was responsible for the crisis and impoverishment they
suffer.

It is crucial that all sectors be invited on an equality basis.
(scientists, farmers, local and multinational businessmen, traders,
exporters, industrials, local, provincial and national government
officials, etc.).

2\. Dedication and commitment

Feeling part of ones community is not enough to create a new reality.
Therefore each actor must participate in the debate indispensable to the
planning of the future. One typical indicator is the time dedicated to
non for profit organizations that propose and commit to the goals the
community is setting for the creation of a new value chain.

The goals and objectives set must be internalized and made public so
that each person feels responsible for the achievements of his company,
industry, university, research center, etc. Competitiveness of each link
of the value chain can be measured thru international benchmarking.

3\. Conversations and information

Conversations build possibilities and actions. Work develops within
these conversations. Therefore institutions are the result of
conversations that have decided and planned how work is being done.

Therefore the more similar the cultural background of people implies a
higher chance of having everyone understand precisely the same thing. It
is absolutely critical that all actors of every link of the value chain
understand and interpret the same idea. To obtain this active listening
and comprehension are to be promoted and worked of thoroughly. Speaking
the same language is no barrier to misunderstandings and
un-coordination.

4\. Negotiation and consensus:

The ability to listen and express oneself in an environment of good
communication creates the room indispensable for negotiations and
coordination. The most challenging activity today is to develop an
institution in which all actors will feel safe to negotiate ideas and
reach consensus.

5\. Trust

Societies with high levels of trust are capable of achieving levels of
coordination that lead to the creation of large organizations and
networks of businesses that can be globally competitive. This concept is
also applicable to the creation of a new bioenergy value chain.

Trust within a value chain is created by the transmission of coherent,
relevant and true information to all actors and by the fulfillment of
the goals and the obligations each actor assumes.

6\. Continuous improvement

The hardest achievement of all is the motivation for continuous
improvement. In many organizations and countries finding who is guilty
is enough and solutions are never searched or implemented.

A value chain has no meaning if it is not oriented to the permanent
search of competitiveness through continuous learning and the adaptation
of practices and attitudes necessary to face the challenges change
brings along.

7\. Entrepreneurial and innovative initiative

The endless search of opportunities and the capacity to anticipate what
will come is critical to seizing the new scenarios generated in the
modern business world. In many occasions countries like ours have lost
opportunities of growth and development and lack of preparation was
always critical. Support and coordination between all members of the
future value chain must allow the creation of a new culture based on
creativity and the search of new opportunities and horizons, in
opposition to the fear of error and failure.

[Miguel Almada]{.smallcaps}

[Biography]{.smallcaps}

Mr. Miguel Almada is an economist responsible for the National Biofuels
Program of the Secretariat of Agriculture of Argentina. He was
previously in charge of the Investment Promotion Agency of Argentina,
identifying business opportunities and promoting foreign direct
investment into the country. He has also worked for the United Nations
Industrial Development Organization as an Investment Promotion Officer,
and at the World Bank as an advisor to the Executive Director for
Argentina, Bolivia, Chile, Paraguay, Peru and Uruguay, both positions
based in Washington, DC. In addition, he holds a graduate degree in
Capital Markets and Global Finance from Georgetown University.

[^1]: Prepared by: Dr.-Ing. Evita H. Legowo, Assistant to Minister of
    Energy and Mineral Resources for Human Resources and Technology,
    1^st^ Secretary of National Team on Biofuel Development of Indonesia