ARGENTINA MEETING WITH SAUDI ARABIAN DELEGATION OCTOBER 12, 2010 ARGENTINA.
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Transcript of ARGENTINA MEETING WITH SAUDI ARABIAN DELEGATION OCTOBER 12, 2010 ARGENTINA.
ARGENTINA
MEETING WITH SAUDI ARABIAN DELEGATION
OCTOBER 12, 2010
ARGENTINA
ARGENTINA
PRESENTATION
•Energy sector in Argentina.
•Reasons for the development of biofuels in Argentina.
•Law Nº 26.093: main objectives.
•Availability of raw material for biodiesel production.
•Recent developments in the Argentine biofuels sector.
•Conclusions and challenges ahead.
ARGENTINA
ARGENTINE ENERGY CONSUMPTION BY SOURCE
Source: Department of Energy, Argentina
Coal2%
Others4%
Nuclear2%Hydro
6%Natural Gas
41%
Oil45%
ARGENTINA
LIQUID FUELS - CONSUMPTION
Fuente: Secretaría de Energía
DIESELOIL66%
GASOLINE17%CNG
17%
Argentina imports 3 to 4% of total diesel oil
ARGENTINA
WORLD SOYBEAN PRODUCTION 2008:
Source: SOYSTAT- USDA
Country Production Share
million tons %
USA 72.9 33%
BRAZIL 61.0 28%
ARGENTINA 46.2 21%
CHINA 14.0 6%
SUBTOTAL 194.1 88%
REST 26.4 12%
TOTAL 220.5 100%
REASONS FOR THE DEVELOPMENT OF BIOFUELS IN ARGENTINA
ARGENTINA
•One of the main exporters of vegetable oil in the world.
•The oil industry in Argentina is export - oriented, sending 95% of its production to the foreign market.
(2008 crushing capacity : 160,000 tons/day).
Source: CIARA
REASONS FOR THE DEVELOPMENT OF BIOFUELS IN ARGENTINA
OTHERS 0.1 Million Tons
TOTAL 7.9 Million Tons
SOY OIL 6.1 Million Tons
SUNFLOWER OIL 1.7 Million Tons
ARGENTINA
Plants by crushing capacity
Crushing capacity tons/day< 1000
1001 to 1600016001 to 31000
> 31001
Crusging Capacity by Province (Share of total)
Santa Fe, 81%
Córdoba, 11%
Buenos Aires, 8% Otras, 1%
ARGENTINA
ARGENTINA IS THE No 1 EXPORTER AND No 3 WORLD PRODUCER OF SOY OIL
REASONS FOR THE DEVELOPMENT OF BIOFUELS IN ARGENTINA
THE No 1 EXPORTER AND No 2 PRODUCER OF SUNFLOWER OIL IN THE WORLD
ARGENTINA
MAIN TOOL FOR THE DEVELOPMENT OF BIOFUELS IN ARGENTINA
• The creation of a legal framework for the development of this
new industry.
• The Argentine Congress approved on April 19th, 2006 a
law to promote the use and production of biofuels in the
country. The biofuels involved are: biodiesel, ethanol
and biogas.
ARGENTINA
MAIN ASPECTS OF THE LAW
• 5% mandatory use of biodiesel and ethanol in all diesel oil and gasoline consumption, beginning January 1, 2010. Currently is 7% for biodiesel.
• Creation of a National Authority (N.A.) for the evaluation and support of projects for the production of biofuels.
• The functions of the N.A are, among others:
• To establish biofuels quality standards.
• To establish the criteria for the approval of projects in order to obtain the benefits established by the law.
• The law prioritizes projects that follows these criteria:
• Sponsored by small and medium sized companies.
• Belong to farming producers.
• Located in regional and rural economies.
ARGENTINA
AVAILABILITY OF RAW MATERIAL FOR BIODIESEL PRODUCTION IN
ARGENTINA
ARGENTINA
Argentine Grain Production- in million tons -
62,0
95,0
69,469,2 70,8
95,0 97,3
84,5
67,4
76,5
-
20,0
40,0
60,0
80,0
100,0
120,0
2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10(*)
ARGENTINE GRAIN PRODUCTION
Source: Ministry of Agriculture, livestock and fisheries of Argentina(*) Estimated
ARGENTINA
Argentine total grain production for the 2007/2008 reached 95,0 million tons. SOY, CORN and WHEAT account for almost 90% of total grain production.
ARGENTINE GRAIN PRODUCTION
Source: Ministry of Agriculture, Livestock and Fisheries - Argentina
Total Grain Production 2007/2008 season:
Grain Planted area Production Share
million hectares million tons %
SOY 16.6 46.2 47%
CORN 4.2 22.0 23%
WHEAT 6.0 16.3 17%
SUNFLOWER 2.6 4.7 5%
SORGHUM 0.8 2.9 3%
OTHERS 1.8 5.2 5%
TOTAL 32.0 97.3 100%
ARGENTINA
Soybean ProductionCampagne2007 – 2008
46.2 million tons
ARGENTINE GRAIN PRODUCTION
Source: Ministry of Agriculture, livestock and fisheries of Argentina- 2009/2010 projected
85%
Argentine Soybean Production- in million tons -
40.5
10.9
20.1
46.2
3.8
53.0
-
10.0
20.0
30.0
40.0
50.0
60.0
1980 /81 1990 /91 1999 /00 2005 /06 2007 /08 2009/2010
300 kms
ARGENTINA
MAIN IMPACTS EXPECTED FROM THE LAW
With the implementation of the 7% mandatory use of biofuels, the needed production is:
• Biodiesel: 1,200,000 tons
• Vegetable oil: 1,240,000 tons. (17% of total current production).
• Soybean seed contains 18% oil, and 77% protein meal
Oil, 18%Rest, 5%
Meal, 77%
BIODIESEL
ARGENTINA
RECENT DEVELOPMENTS
23 Biodiesel plants
Total production capacity : 2,5 million tons.
Total Investments: US$ 500 million
Source: Department of Energy and CARBIO(*) Projected
Argentine Biodiesel Markets- in thousand tons -
168
1150
725
1200
800
0
500
1,000
1,500
2,000
2,500
2007 2008 2009 2010 (*)
Domestic
Export
ARGENTINA
RAW MATERIAL FOR THE PRODUCTION OF ETHANOL
With the implementation of the 5% mandatory use of ethanol, the needed production is:
• Ethanol : 250.000 tons.
• Quantity of corn/sorghum needed = 550.000 tons (2,5% of total
current production)
Currently total production of Ethanol is from Sugar Cane
ETHANOL
ARGENTINA
Member of the Global Bioenergy Partnership (GBEP) – Participation on the definition of criteria and indicators for sustainable production of bioenergy (environmental, social, economic and energy indicators).
EU Directive on Renewable Energy - JRC-DGEN- INTA Document.
Establishment of a Working Group for measurement of GHGs – MINAGRI - MinCyT- Universities and Research Centers.
Participation in Public Consultations related to the sustainability of bioenergy (eg EU and U.S.A).
Implementation of WISDOM methodology (S&D of biomass resources). Tool for decision making.
SUSTAINABILITY OF BIOENERGY
ARGENTINA
CONCLUSIONS
ARGENTINA
CONCLUSIONS
• Argentina has ideal growing conditions for the sustained development of the raw materials needed for the production of biofuels.
• Argentina has immediate availability of the raw material needed to cover the 5%-10% of mandatory use in all gasoline and diesel consumption.
• Argentina would become one of the major producers of biofuels worldwide.
ARGENTINA
CONCLUSIONS
• From the economic and social point of view, the development of the Argentine biofuels industry is:
• Creating a new industry in our country.
• Adding value to grain and vegetable oil production since
Argentina exports 70 percent of the corn and 90 percent
of the vegetable oil that it produces.
• Having a favorable impact on the environment.
ARGENTINA
MAIN CHALLENGES AHEAD
ARGENTINA
MAIN CHALLENGES AHEAD
• To monitor on a permanent basis, issues related to quality, safety and environment.
• To promote research and development to reduce costs of biofuels and to make more efficient use of the biomass produced.
• To encourage the use of biotechnology for the development of new varieties of feedstocks for the production of biofuels.
• To encourage cooperation between countries in the region, in order to access new foreign markets.
ARGENTINA
MAIN CHALLENGES AHEAD
• To promote projects that are labour intensive and have a high impact on regional economic and agricultural development.
• To support the interaction between private and public companies, scientific and technological organizations and public organizations.
• To become one of the main producers and exporters of biofuels worldwide, adding value to current agricultural exports.
ARGENTINA
HOW TO CONTACT US
Ministry of Agriculture, livestock and Fisheries of Argentina
Paseo Colón 982 – 2nd. Floor - Office 219 – Buenos Aires
Miguel Almada
Phone: (5411) 4349-2226 / 2111
E-mail: [email protected]
Website: www.minagri.gob.ar