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

**international perspectives**

**other papers submitted**

**[Future of Ethanol in Brazil: development through
technology]{.smallcaps}**

Arnaldo, Walter (awalter@fem.unicamp.br)

State University of Campinas

Job, Luis Carlos (luisjob@agricultura.gov.br)

Ministry of Agriculture, Livestock and Food Supply

**Introduction**

The Brazilian experience regarding the production and use of ethanol as
a fuel has been getting a lot of attention lately.

The first experiments of mixing ethanol into gasoline in Brazil were
done in the early 1920´s. In the 1970´s, due to the oil crisis, the
Federal Government has launched the National Alcohol Program --
PROALCOOL (in Brazil ethanol is usually referred to as alcohol).

The Program got heavy support from Government, allowing the development
of the agricultural and industrial sugar cane sectors. A substantial
amount of resources was invested and the Federal Government had a strict
control over the sector.

In the beginning of the 1990's, Brazil started a wide process of
economic liberalization leading to a free market situation for the sugar
cane sector. Today, Governmental intervention no longer exists and the
private sector has become one of the most developed in the Brazilian
economy.

Nowadays, there are two ways in which Brazil uses ethanol:

-   Anhydrous: mixed with gasoline in a percentage that varies from 20
    to 25%;

-   Hydrated: used in the neat ethanol cars developed during the
    PROALCOOL and, since 2003, in the Flex Fuel vehicles;

All of the gasoline sold in Brazil has at least 20% of anhydrous
ethanol. The Federal Government defines the level of ethanol in the fuel
blend.

In almost all service stations there is a pump for hydrated ethanol, as
a result of a great effort done during the PROALCOOL to make available
ethanol all over the country.

After studies and some experiments (especially during PROACOOL) sugar
cane was set as the best feed stock for the production of ethanol and
today all of Brazilian production comes from sugar cane.

Although Brazil is currently in a very good position concerning the
production and use of ethanol, there is still room to improve and
research is being widely conducted.

**Research, Technology and Sustainability**

The following topics should be considered in the agenda for improving
sugar cane and ethanol production:

-   Keeping the path in order to reduce the cost of production of
    ethanol;

-   Increasing yields and productivities (i.e., sugar cane production
    per hectare, sucrose content, etc.);

-   Enlarging the sustainability of ethanol production (e.g., reduction
    of water consumption, reduction of agro-chemicals use, phase-out of
    sugar cane burning before harvesting, etc.);

-   Diversifying the production from sugar cane, developing new products
    and processes based on alcohol-chemistry and the use of sugar cane
    biomass;

-   Improving electricity production from sugar cane residues, that
    seems to be in the short-term the best option of diversification;

-   Developing alternative processes of ethanol production from the
    residues (e.g., from the bagasse and/or the trash, through
    hydrolysis);

-   Developing sugar cane crop management and production system
    integration technologies;

-   Expanding the production through the country.

Based on this agenda, research has been focused on the following topics
(but not restricted itself to):

**Agronomic technology**

-   Using biotechnology techniques to introduce new varieties (e.g.,
    pest resistant, draught resistant, able to tolerate soil acidity and
    salinity, increasing nutrient uptake efficiency);

-   Developing studies on the life cycle and on the energy balance of
    sugar cane production systems, for the purpose of reducing the
    energy consumption and replacing fossil carbon with renewable
    sources of energy;

-   Promoting agro-ecological zoning for sugar cane in the new expansion
    areas;

-   Developing technologies in order to increase the productivity and
    sucrose contents of sugar cane;

-   Developing technologies that promote symbiotic nitrogen fixation;

-   Developing technologies that use plant hormones in sugar cane
    production;

-   Developing sugar cane rotation, multi-cropping and renovation
    techniques;

-   Developing plant nutrition techniques for sugar cane;

-   Improving the use of vinasse from the fermentation of the sugar cane
    juice in agriculture;

-   Developing sugar cane management systems;

-   Improving the mechanical harvesting technology;

-   Developing soil management systems in sugar cane plantations;

-   Improving irrigation (where necessary) and water management
    techniques in sugar cane plantations.

**Industrial technology**

-   Developing technologies in order to enhance the use of sugar cane
    trash;

-   Increasing industrial alcohol yields;

-   Reducing water consumption;

-   Improving electricity production (cogeneration process);

-   Reducing steam consumption;

-   Developing the bio-refinery concept (i.e., new processes and
    products based on ethanol and on sugar cane biomass).

-   Developing ethanol production from hydrolysis of sugar cane
    residues;

-   Improving engine's performance with ethanol (lower emissions, lower
    consumption).

Currently there are some Governmental actions under progress that are
worth mentioning:

-   Agro-ecological zoning for sugar cane is already being implemented;
    the aim is to plan a balanced growth of the sugar cane production in
    Brazil;

-   Establishment of a procedure of Certification of ethanol production,
    in order to assure the sustainability of ethanol production in
    Brazil.

**[The Perspectives for Biofuels in Colombia]{.smallcaps}**

Arturo Infante Villarreal

National Coordinator for the Sustainable Development

of Biofuels in Colombia

The following reasons lie behind the worldwide rapid expansion of
biofuel production and consumption:

1- National security concerns related to the urgency of some powerful
countries to substitute the importation of petroleum products for
renewable fuels, produced at home. This situation is faced by developed
countries like USA and several members of the European Union. The most
notorious case is the United States where almost one fourth of the
energy consumed is produced with imported petroleum. Germany faces a
similar dependence on imported natural gas from Russia.

2-Macroeconomic preoccupations derived from the enormous petroleum price
rise, which have taken place since the second half of 2004. The
extensive use of hydrous ethanol in Brazil during the seventies and the
posterior preponderant consumption of anhydrous ethanol observed at
present, originated in the oil insufficiency of the country, which led
to massive importations of expensive petroleum products. This also
happens in most of the European countries, as well as in Japan, Korea
and China.

3- A third motivation comes from the new opportunities that the
expansion brings to the feedstock producers: corn, sugar cane, yucca,
sugar beet for ethanol production, and palm oil, soybean oil, rapeseed,
jatropha, and castor oil for biodiesel, just to mention the principal
contenders.

The main constraint for the large scale development of the biofuels lies
in the limited supply of the required feedstock, at present and in the
future. The countries where the basic inputs can be cultivated or
produced are well aware of this situation, and they know, for example,
that if all the oils and animal fats produced in the world were used for
biodiesel fabrication, less than 10% of the total demand for petrodiesel
could be substituted at the expense of removing this essential
ingredient from the human and animal diets. Malaysia and Indonesia
produce 86 % of the world palm oil, and for several years Malaysia has
considered palm biodiesel production not so much to substitute internal
fossil diesel consumption, but as a mechanism to protect the
international crude palm oil prices. They do it by lowering the oil
supply for the traditional markets, when prices are falling. Instead of
burning large amounts of crude palm oil as fuel for boilers -as was done
in the past- the perspective of transforming the commodity in palm
biodiesel for exportation, is a much better proposition. Anyway, the
idea is to manipulate scarcity to push up the prices.

With respect to the environmental considerations, they have served more
to justify the mandatory use of biofuels at a higher price and less to
foster their usage. For example, the demand for biodiesel in Germany was
induced taking advantage of the popular interest for environmentally
friendly fuels, supported with a price incentive of € 0.83 per gallon
discount with respect to petrodiesel price. Forty eight per cent of the
biodiesel sold in 2006 was B100 and the remainder was consumed by
captive fleets in different blends. In March 2006, the German Government
eliminated the biodiesel tax exemptions and announced the anticipation
of the mandatory B 4.4 use, taxed the same way as petrodiesel. In August
2006, the taxation of B100 became effective with € 0.34 per gallon,
which will increase up to €1.70 in 2012. As a result, the 2.5 millions
of tons of rapeseed biodiesel consumed in 2006, which account for 8.1 %
of Germany total diesel sales, are questioned because the obligatory
blend will demand only 1.36 million tons. Without the incentive, it is
very doubtful that the Germans will continue buying expensive 100 %
biodiesel, despite the "Save the Earth" stickers they put on their car
bumpers. Consequently, the owners of the biodiesel producing plants,
which have reached an added capacity of 3.4 million tons per year, are
very worried.

The Colombian situation is atypical because of the country's self
sufficiency with petroleum. It has only 1.4 per thousand of the world
petroleum reserves but produces more oil than it consumes. However, its
petrodiesel production capacity of 68.000 bpd was exceeded, and
consequently, some 6 thousand bpd of diesel 2 are imported. But, in
general, the country is a net exporter of petroleum, benefitting from
the high international prices. This peculiarity exists because Colombia
is a large producer of hydroelectric energy, which generates 77.6 % of
the national electricity demand. In contrast, in 2005, USA generated 70
% of its electricity from non renewable fossil fuels. Colombia foresees
the substitution of petroleum fuels for biofuels as the mechanism to
save part of its petroleum to fabricate high value added derivatives for
the export markets. In this respect, Colombia faces an opportunity and
not a solution to a threat.

The industrial processes for the production of biofuels use vast amounts
of energy, particularly the ethanol distilleries. In this respect
Colombia is also fortunate with its large coal mines which offer coal
for energy at 9.07 USD per Giga-Calorie when electricity costs USD
152.79 per Giga-Calorie.

The main biofuel attractiveness for Colombia resides in its capability
to produce some of the most important feedstock: palm oil for biodiesel
and sugar cane and yucca for bioethanol. The expansion of lands planted
with these crops constitutes a strategic tool to overcome the serious
problems of rural poverty, violence, criminality, illicit drugs,
paramilitary and guerrilla insurgency, which obstruct the integral and
healthy development of the country. Colombia has an extension of 114
million hectares, of which, after subtracting the jungles, the reserves,
the highlands where the rivers are formed, the urban areas and the
cultivated lands, around 40 million hectares are left in savannahs,
prairies and pastures, part of which are suitable for biofuel feedstock
production. For this reason it is not exaggerated to target the
cultivation of 3 million new hectares with these crops, during the next
13 to 15 years.

The successful experience of Malaysia with the Federal Land Development
Authority (FELDA) and the Federal Land Consolidation and Rehabilitation
Authority (FELCRA) is very valuable for the reconstruction of the rural
areas in Colombia, spearheaded with large scale plantations of biofuel
feedstock. A large amount of work has been devoted to the analysis of
those models to create Colombia's own version, with the basic idea of
establishing large "state of the art" plantations capable to compete in
the international markets. These large agro-industrial projects provide
not only employment for the refugees, poor peasants and "reinserted"
guerrilla and paramilitary fighters but offer to the workers the
possibility to become shareholders. Following the Malaysian models, the
idea is not to give away those shares to the workers but to enable them
to pay with the bonuses earned for a work done beyond the normally
expected targets. The existence of the new biofuel market assures the
financial sustainability of these projects and provides protection
against the price fluctuations, which often lead to financial disasters,
particularly catastrophic when the workers are shareholders.

The purpose of the National Coordination is to develop the strategies to
reach the aforementioned goals, which include comprehensive studies
about the main crops: palm oil, sugar cane and yucca, and the
complementary plantations like jatropha, castor oil and corn, keeping in
mind that the expansion of the biofuel production is subordinated to the
adequate supply of the human food and animal feed internal markets.
"Comprehensive" includes the agronomic and financial considerations of
the different crops and the evaluation of the acceptable regions for
their plantation. Special care is given to the soils and the investment
required for their improvement in order to obtain reasonable yields.
Life cycle analysis conducted for other countries will be adjusted to
the regional local conditions, as well as the energy balance for the
different biofuels. New developments in biodiesel and ethanol production
will be analyzed and recommended where applicable. For example, the
continuous sterilization process in palm oil extraction, the coupling of
carotene recovery with palm biodiesel fabrication and the production of
lignocelulosic ethanol, for which palm oil extraction residues could be
the best feedstock.

![](media/image1.png){width="4.772222222222222in"
height="3.5791666666666666in"}

![](media/image2.png){width="4.155555555555556in"
height="2.1756944444444444in"}

![](media/image3.png){width="4.341666666666667in"
height="2.352777777777778in"}

Source: Worldwatch Institute, UPME

**[Haiti: Responding to the Bioenergy Trend]{.smallcaps}**

**HAITI POTENTIAL FOR BIOENERGY**

> Haiti has the potential for efficient production of the main
> feedstocks used in biofuel production particularly sugar cane for
> bioethanol and jatropha for biodiesel making.

-   It's the 3^rd^ country in size in the Caribbean with 27750 km2 that
    is 2775000 ha

-   It has a long history of growing cane and small mills are scattered
    all over the country in spite of the closure of the 3 main sugar
    company in the 1980's

-   There is also a small rural industry of castor oil manufacturing for
    hair braiding and folk medicine purpose.

**BIOENERGY COULD ALLEVIATE MOST OF HAITI'S PROBLEMS**

-   Superlatives are widely used in the Medias or official documents
    when it comes to poverty and environmental degradation in Haiti. It
    is well known that the forest cover is less than 2% and that income
    per capita is \$250 among other indicators.

-   Preliminary assessment, mainly by USAID, has shown the jobs that can
    be created (1 million jobs for just one project) or the money that
    can be generated just by substituting petrodisel with biodiesel,
    even partially at the utility company.

**THE BIOENERGY RUSH**

A number of projects have been proposed, some of them apparently
inspired by the prospects of securing financing from IDB. The
propositions, coming mostly from NGOs, Associations, vary in scope, in
type of feedstock (used cooking oil, jatropha) and in amount of money in
their budgets. There are other initiatives that have been taken such as
the establishment of jatropha nurseries in the north of Haiti by two
independent companies (JN and SHARE). Some companies arrange to make
contact with the government in order to obtain land concessions in order
to establish their business in the territory

**OPPOSITIONS TO BIOENERGY**

Not everyone is enthusiastic about bioenergy. The FAO has raised
concerns about food security among other voices. These have found echo
in Haiti. The Ministry of Agriculture primary mission is concerned with
food production and would not like to see areas traditionally dedicated
to food production used for energetic crop production. The ministry has
concerns also about loss of habitat and biodiversity.

**NEED FOR A SOUND PUBLIC POLICY**

It is obvious that a sound public is a prerequisite to any action in the
bioenergy field. We do not aim at just copying something that already
exists in another country even though we can learn from our neighbors.
Our approach includes the following steps:

Conducting studies on the capacity of Haiti to produce feedstocks and on
what strategies should be adopted regarding bioenergy programs. Such
studies would assess the soil types, the suitable plant and animal
species, cost benefit analyses as well as social and economic
implications. Strategies would be based on possibilities for improving
actual production practices and on efforts aimed at gearing new
investments.

**[Commercialization of Bio Fuels in Jamaica]{.smallcaps}**

**Petrojam Ltd.**

**Background**

Jamaica commissioned its first ethanol plant in 1985 and was among the
first countries in the region to produce fuel grade ethanol for export
to the United States. Petrojam Ethanol Limited was established for the
purpose of exporting dehydrated fuel grade ethanol into the United
States of America, under the CBI legislation which allows duty free
access.

Following the cessation of wine alcohol feedstock from the EU in, 2004
and termination of a tolling agreement, it was decided to restart
manufacturing of ethanol at the Petrojam facilities, using Brazilian
feedstock.

Jamaica's primary involvement is the procurement of ethanol feedstock,
the dehydration to fuel ethanol and the marketing of fuel ethanol in the
United States or other markets.

Presently, Jamaica, with 2% of global exports, is ranked as the 8^th^
largest exporting nation of ethanol and also accounts for two thirds of
the CARICOM region's ethanol exports.

Jamaica is committed to raising the level of use of renewable energy
sources (RES). The Government of Jamaica (GOJ) in its national energy
policy has established a target of 10% of total energy by 2010. As part
of implementing the energy policy, the Ministry responsible for energy
(MITEC) has mandated the use of ethanol in gasoline in the Jamaican
market by 2008.

To support this strategic direction, the establishment of a one stop
agency has been proposed. Additionally other implementing proposals are
being prepared for the adoption of biofuels (gasoline/ethanol blends and
biodiesel). Initially the ethanol will be at 10% of gasoline to be
increased incrementally within 5 years to 15%.

***Situation and Outlook***

Jamaica has great potential to produce biofuels. The country has
abundant natural resources; however there is need for improvement in the
agricultural production sector, and infrastructure. Biofuels fit well in
Jamaica's economy, because they can reduce dependence on petroleum, add
value to agricultural production and exports, and can promote a cleaner
environment. With modification to the current production structure,
Jamaica has great potential to become an important producer and exporter
of biofuels.

Work is currently underway to provide the framework for investment,
production and commercialization of biofuels.

Some of the responsibilities of the implementing body in general, will
be to develop biofuels assessment, establish quality levels,
introduction of fiscal and tax incentives, encouragement production from
indigenous sources, determine the percentage mix of biodiesel with
diesel and ethanol with gasoline for the domestic market.

**Ethanol**

**Specific Accomplishment/initiatives**

-   Processing Capacity

Significant investments in the renewable fuels sector has resulted in
approximately 160% increase in ethanol processing capacity. Plant
capacity expanded moving from 60 million gallons in 2004 to 160 million
gallons in 2007. The primary activity of ethanol plants is the
dehydration of hydrous ethanol (imported from Brazil and indigenous
sources) to produce anhydrous fuel grade ethanol for export to the
United States.

**[Biofuels activities in Japan: The frontier and
prospects]{.smallcaps}**

Biorefinery is a new concept by which energy and chemicals are produced
from biomass resources, and is regarded as the industrial revolution of
the 21^st^ century. The R&D in the area has progressed dramatically with
the advancement in the biotechnology and the industrial sector has
realized biorefinery as a novel technology which would lead to
establishment of a new industry. In this paper, the current biofuels
activity and the technological development made by our institute,
Research Institute of the Innovative Technology for the Earth (RITE), in
the field of bioethanol production technology will be discussed.

[RITE Bioprocess; novel concept of bioprocess]{.underline}

As the current bioethanol production from corn is not adequate to
satisfy the growing demand for bioethanol, tomorrow's production
technology, in which ethanol is produced from cellulose, has been
investigated. However, the new technology ought to overcome several
points including; high yield, simultaneous utilization of C~6~&C~5~
sugars and resistance to fermentation inhibitors derived from
lignocellulose. The "RITE bioprocess" developed by us is a
highly-efficient bioprocess, in which the existing technological concept
has been completely reformed. As indicated in the figure, the
significant feature in the RITE bioprocess is to produce chemicals,
including bioethanol etc., using the microbial cells that are
artificially growth arrested. In such process, the growth of the
microbial cells (RITE bacterium; *Corynebacterium glutamicum* R), whose
function has been improved at the gene level, is ceased to utilize them
as if they are a catalyst in chemical processes. In RITE process,
reactor is filled with microbial cell-catalyst to high density and
biomass substrates (sugars) are continuously added to the reactor to
carry out the reaction at high-speed.
![](media/image4.jpeg){width="3.6666666666666665in" height="2.75in"}As a
result, productivity (space time yield; STY) higher than general
chemical processes could be achieved. In the existing bioprocess, the
production is dependent of microbial growth resulting in significantly
low STY compared to chemical processes. In the most of
biorefinery-related R&D, the microbial functions are intended to be
radically improved by post-genome technology; however, there is a
limitation in lowering the cost arising from the microbial cell growth.
In the RITE process, such hindrances are not encountered and chemicals
and energy production by bioprocess has been made highly economically
viable.

[Scenario for research and practical application in collaboration with
industry]{.underline}

In September 2006, we have announced the collaboration with Honda R&D
Co. Ltd. aiming for early industrial application of bioethanol
production. The announcement came as we are the first in the world to
establish the technology to "countermeasure the fermentation inhibitors"
which is essential in industrialization of bioprocess from the
cellulosic biomass. We have built a pilot plant in the premise of Honda
R&D Co. Ltd. to carry out fundamental research for industrialization. In
the summer 2007, we are planning for test-driving flexible fuel vehicles
(FFV) and are aiming to establish industrial technology to produce
bioethanol from cellulosic biomass ahead of the world. Currently, we are
drawing the two scenarios for practical application; 1) mass-production
(\>10 million kL) promoted by Japan's energy policy, 2) production from
resources of national origin.

Scenario for mass-production from the cellulosic soft-biomass, which
does not compromise the food supply, is possible in the economic and
yield aspects and we could achieve partnership with other Asian
countries. Since it is vital to change the current world's energy
dependency on one particular region, bioenergy strategy designed with
geopolitics point of view is essential.

[Domestic bioethanol production]{.underline}

As for the domestic production of bioethanol, it seems challenging from
the economic standpoint. However, the production is anticipated for
environmental conservation and to sustain the fallow field and to
achieve that, low-priced soft biomass production and demonstration of
economic feasibility by a small-scale plant should be accomplished. As
soft-biomass resources, though it is important to develop suitable
energy crops in the future, using rice, which we are familiar with,
could also be realistic. With the vast amount of information gathered by
researches, suitable strain could be chosen, cultivation methods
established and the yield could be increased with farmer's effort.

[Future direction]{.underline}

The next generation of biofuel is biobutanol, and though the bioethanol
production has been discussed above, the fundamental research challenge
is currently in biobutanol production in the post-ethanol era.
Biobutanol is biofuel which could be mixed with diesel and great
anticipation is on butanol as it would be a substitute for the
plant-derived biodiesel which is facing environmental and economic
problems. We, RITE, have been carrying out the research to establish a
novel production technique and we hope to develop our own biobutanol
production technology.

**[Prospects for Producing Renewable Energy in Moldova:\
Options and Possible Costs\
]{.smallcaps}**

**Promotion instruments**

In accordance with an Order by Prime Minister on the fourth of January
2006, the ***Coordinating Council for the Use of Renewable Energy
Sources*** was established. This Council including members of Government
such as minister of agriculture and food production, minister of
industry and infrastructure, minister of ecology and natural resources,
minister of economy and trade, other officials and representatives of
scientific community. Council coordinates and promote all governmental
initiatives in renewable energy area. ***Chairmen of Council is
president of Academy of Sciences of Moldova, academician Gheorghe Duca,
one of member of Government.***

In the ***Academy of Sciences of Moldova (ASM) activates Agency for
Innovation and Technology Transfer.*** The Agency is a public
institution with following main objectives: a) development of the
interface between science and production, including renewable energy
sector; b) coordination of innovation and technology transfer activities
by means of financial assistance, legal and information support,
consulting, and promoting international cooperation. Agency is closely
cooperating with the Council (actually the Agency is the working body of
the Council).

Scientific support for activities and initiatives in renewable energy
domain is assured by the ***Institute of Power Engineering of ASM.***
Institute, as well as two already mentioned organization, is very
interested in international cooperation, and inform that plans a
conference "Energy Moldova - 2008" (with a distinct compartment on
renewable energy) in September 2008, Chisinau, Republic of Moldova.

Council, Agency and Institute, in cooperation with ministries and non
--governmental organizations intensively interacts with ***business
community and international bodies*** in the field of alternative energy
resources.

**Legal base and policies**

***1. Law on renewable energy*** (Passed by the Parliament in July 2007)

***2.*** ***Energy Strategy of the Republic of Moldova till 2020***
(approved by Government in July 2007)

***3.*** ***National Program on Renewable Energy Sources Utilitation
till 2010*** (is elaborated and will be approved by Government nearest
in two months)

***4.*** ***Law on science and technology parks and innovation
incubators.*** (passed by the Parliament in June 2007). One of the main
activities inside of these parks and incubators will be scientific
research, innovation, technological transfer and production of renewable
energy.

***5. Law on incentives for residents of science and technology parks
and innovation incubators*** (passed by the Parliament in June 2007).

**Incentives and accordance with international practices**

The law on renewable energy sources was worked out according to European
experience, and the laws on science and technology parks and incubators
contains substantial incentives for the potential residents of these
parks, such as:

-   ***no value added tax on import of goods and services;***

-   ***no customs tax on import of goods and services***

-   ***no value added tax on goods and services bought on the territory
    the Republic of Moldova;***

-   ***no profit tax.***

**Planed projects**

The main renewable energy projects and business plans approved by
Coordinating Council for the Use of Renewable Energy Sources

  ----- ---------------- --------------- -------------- ---------------- -- -------- ---------- --------
  Nr.   Project title    Organization/   Project cost   Project                                 
  d/o                    executing       USD/EURO/Lei   implementation                          
                         enterprise                     period                                  
                         /responsible                                                           
                         for the proiect                                                        

  1     Creation of a    Agency for      15 million USD 1 year                                  
        plant of         Innovation and                                                         
        production of    Technology                                                             
        bioethanol from  Transfer of ASM                                                        
        biomass of sweet                                                                        
        sorghum                                                                                 

  2     Implementing     „ANSTECMET"     € 75 040       1 year                                  
        technologies     Ltd, Vasile                                                            
        that use solar   Şelaru,                                                                
        energy           Chişinău,                                                              
                         Republic of                                                            
                         Moldova                                                                

  3     Obtaining        „Avante" Ltd,   37.3 million   2 years                                 
        ETHANOL by       SA „La plopi",  lei                                                    
        processing       Republic of                                                            
        wheat, corn, raw Moldova                                                                
        alcohol from                                                                            
        sweet sorghum,                                                                          
        ether-aldehyde                                                                          
        wastes and                                                                              
        diffusion oils                                                                          

  4     Production of    „TRITAL --      12 million lei 2 years                                 
        biodiesel from   NORD" Ltd,                                                             
        rapeseed oil.    Victor Ţuţuc,                                                          
        The productivity Chişinău,                                                              
        5000 t/year      Republic of                                                            
                         Moldova                                                                

  5     Creating and     SRL „Paciole",  € 2 million    2 years                      260        1 year
        launching an     Valeriu Manole,                                             thousand   
        enterprise       Drochia,                                                    lei        
        producing        Republic of                                                            
        biodiesel with   Moldova                                                                
        the productivity                                                                        
        5000 tons a                                                                             
        year.                                                                                   

  6     „Livestock       S.C. „AGRODAVA  13 million lei 2 years                                 
        complex for      GRUP" S.A.,                                                            
        reproducing and  Republic of                                                            
        breeding suina   Moldova                                                                
        for meat in                                                                             
        Ungheni region,                                                                         
        with production                                                                         
        of renewable                                                                            
        energy"                                                                                 

  7     Building a 20 MW „Infusion       €32 million    2 years                                 
        windmill (pilot  Company",                                                              
        project)         Portugal                                                               

  8     Pilot project    „Seminţe Nord"  € 40 million   1 year                                  
        for building a   SA, Republic of                                                        
        plant for the    Moldova,                                                               
        production of    „VUCHZ", Czeck                                                         
        bioethanol from  Republic                                                               
        wheat and corn                                                                          
        in the Republic                                                                         
        of Moldova                                                                              

  9     Building a high  „S.T.B.         € 100 million  3 years                                 
        tech industrial  Advanced                                                               
        complex for the  Technology                                                             
        use of solar     Ltd", Great                                                            
        energy using     Britain                                                                
        poli- and                                                                               
        mono-crystals of                                                                        
        silicium in                                                                             
        Cahul region                                                                            

  10    Production of    „Fuel Makers",  43 million USD 2 years                                 
        biofuels in the  SUA                                                                    
        Republic of                                                                             
        Moldova                                                                                 

  11    Obtaining        „POLYCOMP",     € 25.7 million 1 year                                  
        electric and     Cehia                                                                  
        thermal energy                                                                          
        by burning used                                                                         
        tyres                                                                                   

  12    Building plants  „Moore şi       € 2.46 million 2 years                                 
        for production   Asociaţii" SRL,                                                        
        of biodiesel     Romania                                                                
        from vegetable                                                                          
        oils in the                                                                             
        Republic of                                                                             
        Moldova                                                                                 
  ----- ---------------- --------------- -------------- ---------------- -- -------- ---------- --------

Contacts

1\. ***Agency for Innovation and Technology Transfer of ASM:***

***1, bd. Ştefan cel Mare şi Sfânt, mun. Chişinău, Republica Moldova,
MD - 2001***

***Tel: (373 22) 27 13 72, Fax: (373 22) 54 92 10, E-mail:
vafanasiev_aitt@asm.md***

2\. ***Institute of Power Engineering of ASM:***

***5, Academy str., mun. Chişinău, Republica Moldova, MD - 2028***

***Tel: (373 22) 73 53 86, Fax: (373 22) 73 53 82, E-mail:
vpostolati@cc.acad.md***

[Biofuels Production, Marketing and Legal Framework in
Paraguay]{.smallcaps}

Guillermo Parra Romero

gparra@rediex.gov.py

**[1. Introduction]{.underline}**

This report is intended to provide basic information and current and
future trends regarding the production, marketing and legal framework of
biofuels using different feedstocks in the Republic of Paraguay.

**[2. Ethanol Production in Paraguay]{.underline}**

Sugar cane is mostly used in Paraguay as raw material for ethanol
production. Tropical to subtropical weather, large availability of fresh
water and fertile lands, make the eastern region of Paraguay very
appropriate for sugar cane crop. There is a small quantity of sweet
sorghum and corn used as feedstock for ethanol production, as well.

Next table shows cultivated area, cane quantity and average yield of
sugar cane in Paraguay:

+---------------+--------------+-------------------+-----------------+
| Year          | Area         | Production        | Efficiency      |
|               |              |                   |                 |
|               | (Has)        | (Ton)             | (Ton/Ha)        |
+---------------+--------------+-------------------+-----------------+
| 2000/2001     | 59,580       | 2,396,180         | 40              |
+---------------+--------------+-------------------+-----------------+
| 2001/2002     | 52,399       | 2,976,290         | 57              |
+---------------+--------------+-------------------+-----------------+
| 2002/2003     | 62,255       | 3,260,475         | 52              |
+---------------+--------------+-------------------+-----------------+
| 2003/2004     | 69,942       | 3,637,000         | 52              |
+---------------+--------------+-------------------+-----------------+
| 2004/2005     | 74,000       | 3,020,000         | 41              |
+---------------+--------------+-------------------+-----------------+
| 2005/2006     | 80.000       | 4.000.000         | 50              |
+---------------+--------------+-------------------+-----------------+
| 2006/2007     | 92.000       | 5.060.000         | 55              |
+---------------+--------------+-------------------+-----------------+

*Source: DGP with data from DCEA/MAG, 2006*

Average yields reached by agricultural-industrial companies range
between 80 to 100 tons/ha, far above national average including all
25,000 independent sugar cane producers in Paraguay, 10,000 of which
provide raw material to the ethanol industry.

Next graphic shows ethanol plants nominal capacity and effective
production this year:

![](media/image5.wmf){width="4.625in" height="2.7284722222222224in"}

**[3. Biodiesel Production in Paraguay]{.underline}**

There are several feedstocks available for biodiesel production in
Paraguay. Animal fat and soybean are currently the more abundant raw
material. In the near future, other oilseeds such as Jatropha Curkas,
Acrocomia Totais, Rapeseed, Castor Oil and Sunflower are going to be
used as feedstock as well.

Next table shows current potential feedstocks for biodiesel production
in Paraguay:

+----------------------------+-------------------------+---------------+
| **Feedstock**              | **Estimated             | **Oil Yield** |
|                            | Production**            |               |
|                            |                         | **(Lt         |
|                            | **(Ton/year)**          | /Hectare)**   |
+----------------------------+-------------------------+---------------+
| Soybean                    | 6.400.000               | 565           |
+----------------------------+-------------------------+---------------+
| Acrocomia Totais (pulp)    | 1.500                   | 2.000         |
+----------------------------+-------------------------+---------------+
| Acrocomia Totais (kernel)  | 3.000                   | 2.000         |
+----------------------------+-------------------------+---------------+
| Cotton                     | 2.000                   | 170           |
+----------------------------+-------------------------+---------------+
| Sesame                     | 20.000                  | 550           |
+----------------------------+-------------------------+---------------+
| Peanut                     | 34.000                  | 700-2.000     |
+----------------------------+-------------------------+---------------+
| Castor Oil                 | 11.500                  | 1.200         |
+----------------------------+-------------------------+---------------+
| Jatropha Curkas            | 0                       | 2.200         |
+----------------------------+-------------------------+---------------+
| Rapeseed                   | 50.000                  | 900 -- 1.200  |
+----------------------------+-------------------------+---------------+
| Sunflower                  | 68.000                  | 800           |
+----------------------------+-------------------------+---------------+
| Animal fat                 | 30.000                  |               |
+----------------------------+-------------------------+---------------+

There are three plants producing biodiesel from animal fat only.
Altogether they have 20 Million litres per year nominal capacity. The
plants are: Biodiesel Guarani, Bioenergia and Enerco.

**[4. Existing and Potential Markets]{.underline}**

In Paraguay anhydrous ethanol is utilized in blending with gasoline.
Currently ethanol blending percentage is between 18% and 24 %.
Considering a 270,000 m^3^/year total demand for gasoline and 24% of
ethanol blending, there is a 65,000 m^3^/year of anhydrous ethanol local
market in Paraguay.

Currently blending percentage of biodiesel in diesel oil is between 1%
and 20%, which represents a local market for biodiesel between 10 and
200 m^3^/year, considering that total demand for diesel oil is 1 Million
m^3^/year.

**[6. Existing fiscal incentive and legal issues]{.underline}**

Existing laws and ministerial regulatory acts for promoting the
production and consumption of biofuels in the Republic of Paraguay are
as follows:

a.  Law Nº 2.748/05 "Promoting of Bio-Fuels"

b.  Regulation Act Nº 7.412/06

c.  Resolution N° 234 and 235 /07 - Ministry of Industry and Commerce.

REDIEX Biofuels Board is promoting and driving the extension of
incentives and benefits of existing laws and acts. This board is
articulating actions between public sector, private sector and
universities to promote investments in biofuels production and
exportation.

**[Milestones in the Philippine Biofuels Program]{.smallcaps}**

The impetus that fueled the country's biofuels initiatives were not just
offshoots of the global trends in the energy as well as environmental
scenarios but more so on local developments -- coconut-based biodiesel
was being tested as early as five (5) years ago; sugar production on the
other hand reached self-sufficiency levels since crop year 2002-03,
creating a surplus that needs an alternative destination other than the
volatile, low-priced dumped sugars of the World Market.

The formal actions which reached the debate floors of the Legislative
branch of the Government culminated in the passage of **Republic Act
9367**, known as the *Biofuels Act of 2006*, signed into law by the
President Gloria Macapagal-Arroyo in January 12, 2007.

The law mandates the blending of biofuels into liquid fuel, *methyl
esters* into diesel and *bioethanol* into gasoline. For biodiesel, which
production in commercial quantities has been going on for quite
sometime, a minimum blend of 1% into diesel fuel started on May 6, 2007
or ninety (90) days after the effectivity of the Law, to increase to a
minimum of 2% two years thereafter. In the case of bioethanol, a minimum
5% blend into the country's total gasoline sales by volume is to be
mandated starting 2009, then, in 2011, a minimum of 10% blend for
[al]{.underline}l gasoline is to be imposed. The sales of biodiesel
blend started in May 06 this year. Two (2) oil companies have however
started dispensing E10 (10% bioethanol blend) gasoline on voluntary
basis, their ethanol stock imported from Brazil and Australia.

The law created the National Biofuels Board (NBB), a governing body
tasked to oversee the implementation of the National Biofuels Program
(NBP). The Department Secretaries of eight (8) government institutions
compose the Board with the Secretary of Energy as chair. Three (3) seats
are occupied by the heads of the Agriculture Department (DA), Sugar
Regulatory Administration (SRA) and Phil. Coconut Authority (PCA),
clearly an acknowledgment that the success of the program heavily hinges
on biofuel feedstock, in this case sugarcane for bioethanol, and coconut
for biodiesel. These three (3) agencies have together forged a Biofuel
Feedstock Roadmap to insure and assure availability and sustainability
of biofuels feedstock supply.

While cocomethylester (CME) is produced continuously with capacity
expansion of present plants, other prospective CME producers are in the
various phases of putting up their factories. Also, massive investment
are being utilized for develop ***Jatropha curcas***, a likely biodiesel
source to supplement coconut oil. Government and private lands are being
converted to *Jatropha* plantation; however, the authorities have
declared that commercial production of *Jatropha* methyl ester would
come on on-stream in 3-5 years yet.

Similarly, the DA and SRA are into the identification and validation of
expansion areas to be devoted for bioethanol feedstock production.
Already, one stand-alone distillery based on sugarcane is in the
construction stage in San Carlos, Negros Occidental province, targeted
to go on-stream in the last quarter of next year. Prospective investors
have alreadysignified intention to put up bioethanol plants using
cassava, sugarcane and sweet sorghum and are in the various stages of
laying the groundworks for suvh ventures. For sweet sorghum, so much
promise is attached to this new crop but bioethanol authorities have
relegated all activities regarding sweet sorghum as still in the R & D
stage.

### [Sustainable Biofuels Development]{.smallcaps}

### **Shirley Skerritt-Andrew**

### **St. Kitts and Nevis**

**[Background]{.underline}**

St. Kitts and Nevis is a small two island federation, located in the
English speaking Caribbean, just south east of Puerto Rico. The country
is one of a group of island states scattered primarily in the Pacific
Ocean, the Caribbean Sea and off the Atlantic coast of Africa, known as
Small Island Developing States or SIDS. SIDS share certain
socio-economic characteristics due to their islandness, small size, and
geographic isolation. They are ecologically fragile and are particularly
vulnerable to the effects of climate change and biodiversity
destruction.

Most SIDS like St. Kitts and Nevis are also post-colonial societies that
have emerged out of the period of European expansion that can be
described as the first phase of globalisation in the modern era. During
this period economic exploitation resulted in the global movement of
capital, labour, and commodities and in SIDS in general, because of
their small size, there was the imposition of monoculture to satisfy the
demand in Europe for the luxuries of the day such as tobacco, sugar, or
bananas. St. Kitts and Nevis was historically one of the sugar
producing, British territories in the Caribbean and sugar cane was the
only significant agricultural crop that was commercially cultivated,
particularly on St. Kitts, from about 1650 until the industry was closed
in mid 2005.

The issue of bio-energy first came to the fore in the context of the
demise of the sugar industry. However, interest in alternative energy
development was also influenced by increased and increasing oil prices
and the impact of this phenomenon on the national budget of an already
highly indebted country, as well as concern for the environment in both
its aesthetic and ecological sense in a country which now had to depend
on services, particularly tourism, for its economic survival. The
biofuel discussion in St. Kitts and Nevis is thus, the direct result of
the search for an energy alternative that would be sustainable,
relatively cheap and environmentally benign.

**[The search for a fitting alternative]{.underline}**

St. Kitts and Nevis began to seriously explore alternatives like
geothermal energy as early as 2003 when it joined with two other
Caribbean States, Dominica, and St. Lucia under the auspices of the OAS,
to assess and develop any potential that the islands might have in this
area. The GEF funded Geocaraibes Project was the result. It was as part
of the Geocaraibes Project, and through the good offices of the OAS
Department of Sustainable Development, that St. Kitts and Nevis was one
of four Caribbean island states that benefited from the activities of
the Global Sustainable Energy Islands Initiative (GSEII), which then
assisted the country to further explore the possibilities of other
renewable energy sources. The GSEII together with a group of key
partners that included the Energy and Security Group (ESG) and the
Climate Institute were able to leverage in funds from the UN Foundation
(UNF), its implementing agency the UN Industrial Development
Organisation (UNIDO) and the Italian Government to support St. Kitts and
Nevis to develop a Sustainable Energy Plan and to provide policy
support, capacity building, and finance facilitation.

As a sugar producing country, St. Kitts and Nevis had been aware of
developments in the industry such as cogeneration and other biomass to
energy technologies based on sugar cane as they came on stream in
countries like Brazil. By this time, however, the industry, which was
state owned, was virtually bankrupt due to the high cost of production
and had neither the technical expertise nor the capital to import it. In
the waning days of the industry it seemed futile to even consider
whether any of these technologies would be appropriate. Part of the
paralysis had to do with the uncertainties surrounding the industry,
both in terms of its traditional market arrangements i.e. changes to the
European Union (EU) sugar regime, and the intricacies of the state's
decision making process vis-à-vis sugar. When, however, the closure of
the industry became inevitable a confluence of different factors came
together to revive interest in exploring alternative uses of sugar cane.

As the sugar industry was being wound down it was realised that sugar
cane is a grass with certain environmental and aesthetic values in the
context of a small vulnerable island state, like St. Kitts and Nevis.
Sugar cane stabilised and held together the fragile volcanic soils of
St. Kitts. As a plant that was ubiquitous in the landscape it provided
green and pleasant panoramic views throughout the island. It was
therefore agreed that it would be desirable to at least keep some of the
agricultural land under sugar cane and to find an alternative use for
the plant. In this regard, even if St. Kitts and Nevis was losing a
sugar industry it might simply be replacing it with a 'fuel cane'
industry. The biofuels idea seems therefore the ideal alternative and
fit for St. Kitts and Nevis on many different levels - alternative
energy, alternative industry, environmentally sustainable.

**[Progress so far]{.underline}**

St. Kitts and Nevis is currently at the very beginning of realising any
biofuels potential that it may have. With the closure of the sugar
industry, St. Kitts and Nevis' unique situation as the only African,
Caribbean and Pacific (ACP) state so seriously affected by the changes
to the EU's sugar regime that it had to discontinue sugar production
became known. The expectation that former sugar lands would now be
available for other economic activities has resulted in a number of
investment proposals some of which include using the land for the
production of ethanol or other forms of biofuels. The response of the
Government has been to seek technical assistance to enable the country
to make the right decisions regarding one of its most scarce resources,
land.

In this regard the OAS in conjunction with GSEII and supported by the
ESG and UNIDO have recently completed a bio-energy potential assessment
of St. Kitts and Nevis and have produced a Background Discussion Paper
that will be presented to stakeholders in the country during the first
half of August this year. The key objectives of the study were "1)To
analyse the technical, economic and socio-environmental characteristics
of biomass-to-energy systems for converting the locally available
biomass to energy in the context of St. Kitts and Nevis, and 2) To
identify key criteria to select sustainable and commercially viable
biomass to energy systems in the context of St. Kitts and Nevis." The
conclusion of the Paper, which examined various types of biomass to
energy conversion systems and analysed different scenarios for these
systems through economic modelling, was that under certain conditions
both electricity generation and ethanol production for the local market
would be feasible.

Following on and as a result of this significant start, it was announced
by US Secretary of State Condoleezza Rice at the 37^th^ General Assembly
of the OAS in Panama City in June of this year that St. Kitts and Nevis
will be one of the four Caribbean Basin countries that will be the
initial focus of the US/Brazil Biofuels Partnership's outreach
programme. The outreach programme, which is being coordinated by the US,
will be launched officially in the second half of August 2007 in St.
Kitts and Nevis, and will take the form of information sharing and
awareness raising on a range of technical issues related to biofuels
development. St. Kitts and Nevis is extremely honoured to have been
chosen to be a part of this programme and considers that the programme,
in addition to alerting stakeholders in the country to the potential
benefits of biofuels production, will also result in the appropriate
kinds of expertise and investments in this area for the country.

**[Development and Perspective of Energy Crops in Taiwan]{.smallcaps}**

> Chang-Ying Wang, Director, Food Industry Division, Agriculture and
> Food Agency, Council of Agriculture, Executive Yuan, Taiwan, ROC
>
> and
>
> Yung-Chang Lai, Associate Scientist, Department of Agronomy, Chiayi
> Agricultural Experiment Station, Taiwan Agricultural Research
> Institute, Council of Agriculture, Executive Yuan, Taiwan, ROC

Along with the decreasing of fossil fuel resource and increasing oil
prices, many nations have been exploring alternative energy resources
including sun, wind and biomass. In Taiwan 98% of energy depends on
importing, the government commits itself to the improvement of
independence of energy supply. Based on the Kyoto Protocol, and
considering WTO regulations about green measures, the agriculture
administration is vigorously constructing an effective
production-consumption system for energy crops. To improve multiple uses
of agriculture lands and beautify farm village scenery, the system is
designed to cultivate energy crops on set aside fallow field, and to
establish multiple-win dimensions for green energy fuel field,
agriculture development, and ecology sustainability.

1.  Strategy:

a\. In according with the regulations of WTO, encourage cultivate energy
crops on set aside fallow field via utilization of environment payments.

b\. Enhance variety improvement for energy crops and establish cropping
management system.

c\. Develop mechanical and low input farming techniques to decrease
production costs.

d\. Design suitable crop production plan, in conjunction with progress
of technique advancement from energy research and development sectors.

e\. Construct production consumption system and elevate add-values of
energy crop production, by integrating functions of farm village
scenery, leisure agriculture and ecology education.

f\. Provide suitable incentives, maintain and balance the farmer's
income between rice production and payments for set aside encouragement.

2\. Current development

a\. In according with national energy development policy, preliminary
plans have been conducting through encouraging energy crop production on
set-aside rice fields and improvement of breeding and farming systems
for energy crops.

b\. A pilot project of 90 ha was performed in 2005, planting soybean,
sunflower and rapeseed. In 2006, the project extended to more counties.
The focus was to enlarge farming scale, reduce production inputs, and
ensure materials supply for bio-diesel manufacture by contract-cropping
production.

c\. In 2006, acreage of oil crops was 1721 ha including the spring and
autumn crops, and has been extended to 4400 ha in 2007. The harvested
oil seeds are to be converted to bio-diesel and utilized in 'Green Bus
Demonstration Project'.

d\. In general the government provides US\$ 1363/ha for environment
payments if the energy crops are produced on set aside fields. In the
initial years of 2006 and 2007, additional US\$ 454/ha is offered for
material and production costs if the production reach a base yield.

e\. Regarding technology development, on going research projects have
been focused on integrated benefit analysis for lowering total costs,
and on improvement of breeding and culture management for increasing
yields.

f\. In addition to oil crops, economical evaluation has also been
performing on sugar and starch crops, including sugarcane, sweet
sorghum, and sweet potato. The high yield potential of over 30 ton/ha
for sweet potato is of special interests. Preliminary researches are
performed to select high starch yield genotypes, improve culture and
ethanol production techniques.

g\. Research projects of cellulose based ethanol production technology
have been lunched, using local biomass resources.

3.  Perspective

In Taiwan the development of energy crops is not only for the benefits
of agriculture, but also for mitigation of greenhouse gases emission, as
well as whole ecological sustainability. We have been expecting and
exploring an integrated system which is capable of elevating add-values
of set aside field, improving self dependence of energy supply, and
reaching a sustainable agriculture in turn.

**[Gasohol Strategic Plan and Implementation Status]{.smallcaps}**

August, 2007

Department of Alternative Energy Development and Efficiency

Ministry of Energy, Thailand

1.  **Policy on Alternative Energy and Ethanol**

Ministry of Energy has formulated Thailand Energy Strategic Plans for
Competition and the Cabinet has approved the Energy Strategic Plans on
September 2, 2003. An Alternative Energy Strategic Plan (AESP) for
Sustainable Development was one of the Energy Strategic Plans which
aimed to increase the commercial utilization of Renewable Energy for
electricity generation and industrial uses from 0.5% in 2002 to be 8% of
the country final energy demand by the end of 2011.

Development of Biofuel such as Ethanol and Biodiesel has been targeted
in the AESP. Department of Alternative Energy Development and Efficiency
(DEDE), Ministry of Energy (MOEN) has been assigned to formulate Gasohol
Utilization Strategic Plan (GUSP) and submitted GUSP to the ministerial
meeting among the Minister of Energy, Minister of Agriculture and
Cooperative, and Minister of Industry had the Cabinet resolution on
December 9, 2003. Road map of GUSP is presented in Figure 1 and the
ultimated goal is the following:

**[Ultimate Goal:]{.underline}**

-   To increase an energy supply security of the country and sustain
    development in communities;

-   To create the potential of local community to be a source of energy
    supply;

-   To encourage bio-refineries industry in the country.

> ![](media/image6.wmf){width="3.8354166666666667in"
> height="2.3569444444444443in"}
>
> **Figure1: Roadmap of Gasohol Utilization Strategic Plan**

Based on the GUSP targets, MOEN has also aimed to promote the
development in many dimensions and contribute to gain an economic values
and benefits to Thailand in the following aspects:

**1) Energy**: to supplement the security of energy supply in Thailand
by reducing imported oil, which will result in lowering foreign currency
and to provide competitive potential for domestic energy resources

**2) Economy:** to strengthen the economic development in the
agriculture and industrial sectors. Farmers will be able to sell their
agricultural products in energy market which has a high demand and
establish the new and high value-added industries to Thailand such as
animal feeds, bio-plastics, automobile components, etc\... It is
expected that the GUSP is also able to raise the level of cash crop
plantation to be more efficient management model and to introduce
knowledge base on alternative energy plantation development to
communities nationwide.

**3) Society:** To create more jobs opportunity in ethanol industry and
related agricultural activities such as planting, harvesting and
logistics. It is expected that living standards and community economy
will be improved to a higher level.

2.  **Status of Ethanol Development**

\(1\) [Existing ethanol plants:]{.underline} Eight ethanol plants with a
total production capacity of 1.05 million LPD (July.07) using molasses
as a main feedstock.

Pornvilai International Group Trading Co. Ltd. 25,000 LPD,

Thai Alcohol Public Co. Ltd. 200,000 LPD,

Thai Agro Energy Co. Ltd. 150,000 LPD,

Thai Nguan Ethanol Co. Ltd. 130,000 LPD,

Khon Khan Ethanol Co. Ltd. 150,000 LPD

Petrogreen Co. Ltd. 200,000 LPD

Thai Sugar Ethanol Co.Ltd. 100,000 LPD

And K.I Ethanol Co.Ltd. 100,000 LPD

\(2\) [Under construction ethanol plants]{.underline}: Six ethanol
plants which will be started the end of 2007 with a total production
capacity of 0.78 million LPD.

1.  Specification of Gasohol

Department of Energy Business (DOEB) has issued the Specifications of
Gasohol Octane 95 and 91 since July 1, 2004 and November 15, 2004
respectively. In September 2005, DOEB has issued the Specification of
Denatured Ethanol on September 24, 2005 for details visit
[www.doeb.go.th]{.underline}.

2.  Gasohol Market Development

At present there are 10 oil companies that provided Gasohol Octane 95 to
the customers via outlets countrywide of 3,445 gas service stations
which the percentage of gasohol stations is shown in figure2.

![](media/image7.wmf){width="4.9375in" height="1.9423611111111112in"}

**Figure2: The percentage of Gasohol Stations in Thailand (DOEB, July.
2007)**

3.  **Ministry of Energy in Enhancing of Gasohol Utilization**

During the fiscal year 2004 to 2006 MOEN has encouraged and stimulated
the utilization of gasohol continuously. The important activities can be
summarized as the following:

1.  MOEN and Ministry of Industry organized jointly meeting on December
    24, 2004 to discuss the organization body which is responsible for
    policy direction, regulation and implementation of biofuel in
    Thailand, in order to drive the National Agenda on Alternative
    Energy achieving the defined targets. Furthermore, the Sub-committee
    on Ethanol Development and Promotion was set up to manage the
    development and promotion of biofuel effectively on December, 2006

2.  Oil companies have initiated the promotion of gasohol by lowering
    the detailed price of Gasohol 95 about 1.50 Baht/liter compared to
    the UGL 95 since February 15, 2005. At the present the price is
    difference at 3.50 Baht/liter.

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```
4.  **Barriers of Gasohol Promotion**

\(1\) The construction of ethanol plants have been delayed to wait and
see the ethanol pricing from the government. The government has no
penalty measures to enforce the relayed ethanol plants.

\(2\) Ethanol production faced the rapid increase of feedstock price in
particular molasses. This is due to the high demand of world market and
the sugar cane production in Thailand decreased dramatically because of
drought. In associated with the demand from ethanol producers to
increase the selling price of ethanol because the prices of feedstock
and world crude oil have significantly loosen.

5.  **Future Activities for Gasohol Encouragement**

5.1 To enhance more ethanol production for fuel by increasing the crop
outputs in terms of yield improvement

5.2 To lay the control measures to enforce the progress of construction
works of new ethanol plants

5.3 To promote Gasohol91 use earlier than MOEN's target

5.4 To encourage ethanol export to other countries

-   **Introduction of Ethanol in the Local Transportation Sector**

Petrojam Limited conducted a pilot study in 2006 to determine the
ethanol blend in gasoline, which would be most suitable for Jamaica's
transportation fleet. The study took place over a six month period. The
assessment done at the end of the study revealed that none of the cars
in the pilot suffered any adverse reaction using ethanol blended
gasoline.

The next step is for full implementation of E-10 in January 2008.

**Future Development**

-   Petrojam Ethanol is currently planning to expand its production
    capacity from 40 to 60 million gallons.

-   Another Jamaican firm is set to construct a 120-million gallon (454
    million litres) ethanol plant by early 2008.

This will increase the ethanol processing capacity of the country to 300
million gallons.

**The Sugar Industry**

The basic goal is to improve the flexibility and scale of the agro
industry, particularly the sugar industry. To this end the government is
in the process privatizing the sugar industry with an intention to
diversify and revitalize the Jamaican sugar sector. The intention is to
expand the planting of sugar cane and use this as feedstock for
indigenous ethanol production, for fuel supply to the national transport
sector and export.