# Presentation: 294951

## DEVELOPMENTS IN ARGENTINA’S BIOFUELS VALUE CHAIN

**USDA Global Conference on Agricultural Biofuels**
**August 2007**

**NATIONAL BIOFUELS PROGRAMME **
**MINISTRY OF ECONOMY AND PRODUCTION OF ARGENTINA**

## LIQUID FUELS - CONSUMPTION 

- Fuente: Secretaría de Energía

## ARGENTINE COMPARATIVE ADVANTAGESFOR THE PRODUCTION OF BIOFUELS

** ****Comparative advantages of Argentina in the production of oil ****	****crops: large and fertile extensions of land available for oilseed ****	****production.**
** ****Flexibility for the implementation of oilseed crops from natural and ****	****artificial irrigation.**
** ****Great number of ecosystems that allow for the growth of a diversity ****	****of crops.**

## ARGENTINE COMPARATIVE ADVANTAGESFOR THE PRODUCTION OF BIOFUELS

**ARGENTINA IS THE No 1 EXPORTER AND No 3 WORLD PRODUCER OF SOY OIL**

## ARGENTINE COMPARATIVE ADVANTAGESFOR THE PRODUCTION OF BIOFUELS

**THE No 1 EXPORTER AND No 2 PRODUCER OF SUNFLOWER OIL IN THE WORLD**

## ARGENTINE COMPARATIVE ADVANTAGESFOR THE PRODUCTION OF BIOFUELS

**THE 2ND LARGEST WORLD EXPORTER OF CORN**

## ARGENTINE COMPARATIVE ADVANTAGESFOR THE PRODUCTION OF BIOFUELS

**One of the main exporters of vegetable oil in the world.**
**The vegetable oil industry in Argentina is export- oriented, sending 90% of its production to the foreign market. **
** ****2006 crushing capacity : 160,000 tons/day.**** **
** ****Favorable environmental impact: The use of biofuels reduces**
**	****	****the emission of carbon dioxide (CO2) into the atmosphere**
** ****Creation of the ****National Biofuels Programme **

**Source: Secretariat of Agriculture, Livestock, Fisheries and Food - Argentina**

## LEGAL FRAMEWORK FOR THE DEVELOPMENT OF BIOFUELS IN ARGENTINA

**The Argentine Congress approved on April 19****th****, 2006 a law aimed to promote the use and production of biofuels in the country (biodiesel, bioethanol and biogas). **
_**Main aspects of the Law: **_
**5% mandatory use of biodiesel and ethanol in all diesel oil and gasoline consumption, beginning January 1, 2010.**
**The law prioritizes projects that accomplish the following criteria:**
**Sponsored by small and medium companies.**
**Belong to farmers.**
**Located in regional and rural economies. **

## ARGENTINE GRAIN PRODUCTION

**SOY, CORN and WHEAT account for almost 88% of total grain production.**

**ARGENTINE GRAIN PRODUCTION**

**Source: Secretariat of Agriculture, Livestock, Fisheries and Food - Argentina**

**Total Grain Production 2006/2007 season:**

## MAIN IMPACTS EXPECTED FROM THE LAW 

**Projected diesel oil consumption for 2010: ****12.5 million tons.**
**With the implementation of the 5% mandatory use of biofuels, the needed production of biodiesel is: ****625,000 tons.**
**Quantity of vegetable oil = ****650,000 tons****. (8% of total current production). **
**Argentina's domestic consumption is only 6% of total vegetable oil production.**

**BIODIESEL**

## MAIN IMPACTS EXPECTED FROM THE LAW

**Projected gasoline consumption for 2010: ****3.5 million tons.**
** ****With the implementation of the 5% mandatory use of biofuels, the needed production of Ethanol is: ****175,000 tons.**
**Area needed for corn***** *****=**** 77.000 hectares. (2% ****of total current planted area) **
**Quantity of corn needed** = **540.000 tons (2% ****of total current production)**

**BIOETHANOL**

## RECENT  DEVELOPMENTS

_**BIODIESEL**_
***Plants under construction***** :**
**One – 100.000 tons.**
**Three – 200.000 tons. **
**One – 300.000 tons.**
**Total potential production capacity: 1.5 million tons.**

**Source: National Association of Biofuels and Hydrogen of Argentina**

***Announcements*****:**
**Two – 200.000 tons.**
**One – 100.000 tons.**

**	**_**BIOETHANOL**_
***Announcements*****:**
**Two – 100.000 tons.**
** ****One – 50.000 tons.**
**Total potential production capacity: 250.000 tons.**

## CONCLUSIONS

**Argentina has ideal growing conditions for the sustainable development of the raw materials needed for the production of biofuels.**
**R&D is crucial in order to promote and develop non traditional energy crops for the production of biofuels.**
**Argentina has immediate availability of the raw material needed ****to cover the ****5% of mandatory use in all gasoline and diesel consumption. **
**Argentina would become on of the major producers and exporter of biofuels worldwide**

## CONCLUSIONS

**From the economic and social point of view, the development of the Argentine biofuels industry will:**
**Create a new industry in our country.**
**Add value to grain and vegetable oil production since Argentina exports 70 percent of the corn and 90 percent of the vegetable oils that it produces.**
**Allow the development of energy crops in marginal areas, contributing to improve the quality of life of the population.**
**Have a favorable impact on the environment**