Biomass energy perspectives in

Mexico and Central America

Emilio de los Ríos Ibarra, Red Mexicana de Bioenergía

edelosrios@prodigy.net.mx

Salvador de Bahia, November 2007

Plan

Bioenergy in Mexico.

Mexico & Central America Resource use and Sustainability

Is there a path for Sustainable Biomass energy?

Biomass energy perspectives,

The case of firewood in Yucatan

Bioenergy in Mexico

High potential, marginally used Promising applications..

Land fill Biogas

Efficient stovesForest by products

Energy crops

power

Energy use in Mexico

Bioenergy supplies 8% of total primary energy in México (455 de 5,690 PJ/yr)Bioenergy supplies 8% of total primary energy in México (455 de 5,690 PJ/yr)

0.0

1000.0

2000.0

3000.0

4000.0

5000.0

6000.0

7000.0

1965 1970 1975 1980 1985 1990 1995 2000

Año

PETA

JOU

LES

firewood

sugar canebagasseWind

Geothermic

Hydraulic

Nuclear

associated gas

non associatedgasCondensates

Crude oil

Coal

Natural Forest38%

Manure 3%

energy crops6%

Plantation27%

Forest waste2%

Agricultural by products

19%

Agro-industrial wastes

4% MSW derived1%

Total availablility : 3,000-4550 PJ/año 50-80% total energy demand

Bioenergy Sources in Mexico

Global Warming

POWER GENERATION MITIGATION POTENTIAL 2030Gt CO2 eq/ yr

Fuel switch and plant efficiency, 1.07

Nuclear, 1.88

Hydro, 0.87Wind, 0.93

Bio-energy, 1.22

Geothermal, 0.43

Solar PV and Concentrated Solar

Power, 0.25

CCS + coal, 0.49

CCS + gas, 0.22

TOTAL 7.4 GtCO2eq/year Fuente: IPCC, 2007

Biodiesel: Experience in México

• Waste vegetable oil plant in Monterrey

• Propalm Plant• Michoacán state project (Jatropha)

• Comisión Bioenergéticos- Chiapas (Jatropha)

Nivel 3

Nivel 2

Nivel 1

Biodiesel pilot plant

Planta Grupo Energéticos

Biogas• Manure management • Land fill gas• MDG and Climate change mittigation

pottential • (CH4 21 times more GWP than el

CO2)• 128 of 148 Mexican CDM approved

projects for Mexico are biogás.

Mexico’s Sugar Industry

Sugar is Mexico’s largest agricultural industrySugar cane fifth largest cultivated crop, (614 000 ha)

58 sugar mills in 15 states, most obsolete.

Fossil fuel consumption 8.5 liters/ton sugar.

More than 440,000 jobs.(cane cutters, seasonal field workers, and factory workers)

158,000 cane growers,Mean surface per grower < 4 ha, produce 300 tons each.Quensland Australia 6,500 growers with 85 ha.

Mexican sugar cane industry has been in permanent crisis, as state intervention, aims job creation not labor productivity.

Sugar cane Ethanol

Domestic production during the 2004/2005 crop 60 million liters

Domestic demand industrial ethanol 164 million liters

Imports from Guatemala, Salvador

FOB mill price $372.00 Mex pesos/ ton =

Sugar Cane

$34.00 US $/ton (2006)

Maize production costs in Mexico

$ 280.48 $ 3,034.78 1.38 $ 4,188.00 TABPV 2005 $ 269.38 $ 2,914.67 3 $ 8,744.00 GROOI 05-06 $ 217.03 $ 2,348.24 2.5 $ 5,870.60 E MEXPV 2005 $ 216.97 $ 2,347.62 2.1 $ 4,930.00 VERPV 2005 $ 186.97 $ 2,023.00 5.5 $11,126.50 SONOI 05-06 $ 168.24 $ 1,820.33 3 $ 5,461.00 YUCPV2005 $ 154.48 $ 1,671.50 3 $ 5,014.50 TAMPSPV 2005 $ 108.84 $ 1,177.60 5 $ 5,888.00 JALISCOPV 2005 $ 95.02 $ 1,028.15 6.5 $ 6,683.00 E MEXPV 2005 $ 88.96 $ 962.57 7 $ 6,738.00 JALISCOPV 2005 $ 75.22 $ 813.86 7 $ 5,697.00 SINALOAPV 2005 $ 56.48 $ 611.15 9.15 $ 5,592.00 SINALOAOI 05-06USCy PESOSton

Cost/toncost/ tonyieldCost/haStateSeason

Source:www.siap.sagarpa.gob.mx.viocs CBOT price $149.6 us cy/ton380 cents/bushell 15 nov 07

Food or fuel ?

How can maize be produced at this cost?

Cost per ton$ us/ton

Cost per tonpesosYield ton/ha

Cost pesos/hastateseason

$ 280.48

$ 269.38

$ 217.03

$ 216.97 $ 2,347.62 2.1 $ 4,930.00 VERPV 2005

$ 2,348.24 2.5 $ 5,870.60 E MEXPV 2005

$ 2,914.67 3 $ 8,744.00 GROOI 05-06

$ 3,034.78 1.38 $ 4,188.00 TABPV 2005

Maize in Mexico and C. America is:• Base of tortillas, the staple product

for most of the population. • Specific varieties are main

ingredient for delicate dishes.• And a commodity.commodity.

CBOT price $149.6 us cy / ton380cents / bushell 15 nov 07

Energy equiv.cost

Total cost$ US / lt

Feed stock cost $ us/ l

$ 1.2140 $ 0.8608 $ 0.6722 TAB

$ 1.1765 $ 0.8342 $ 0.6456 GRO

$ 0.9996 $ 0.7088 $ 0.5201 E MEX

$ 0.9994 $ 0.7086 $ 0.5200 VER

$ 0.8980 $ 0.6367 $ 0.4481 SON

$ 0.8347 $ 0.5919 $ 0.4032 YUC

$ 0.7882 $ 0.5589 $ 0.3702 TAMPS

$ 0.6339 $ 0.4495 $ 0.2608 JALISCO

$ 0.5872 $ 0.4164 $ 0.2277 E MEX

$ 0.5667 $ 0.4019 $ 0.2132 JALISCO

$ 0.5472 Gasoline

$ 0.5203 $ 0.3689 $ 0.1803 SINALOA

$ 0.4570 $ 0.3240 $ 0.1354 SINALOA

Ethanol production cost maize feed stock

Source Compete task 4.4 report

Domestic wood fuel

• 5 millon families, use wood fuel in Mexico.

• Efficient wood stoves are a true alternative

• Benefit cost Ratio 7 : 1 just for health benefits.

Environmental issues

have transboundary Effects and need

transboundary actions

Biodiversity conservation

Bioenergy &

Conservation

Meso America

5 Mexican states % area Chiapas 10% Campeche 7% Tabasco 3% Yucatán 6% Quintana Roo 5%Belice 3%Costa Rica 7%Guatemala 14% Honduras 15%Nicaragua 18%El Salvador 3%Panama 10% Total area 768,543 Km2

People & Landscapes

BiodiversityMeso - America bridge between North and South América.

Second world’s largest reef, many different Landscapes. Mountains that reach 4,211 m. above sea level.

Rainfall from 500 mm to more than 7,000 mm/year.

Mean annual temperatures from 7,5 to 32,5 0 C.

24,000 vascular plant species, 5,000 (21%) endemic. (Jatropha curcas)

521 mamalian species, 210 (40 %) endémic.

1,193 bird species

Crop center of origin: Maize, Zea Mays cocoa Theobroma cacao, Beans Phaseolus. Sp. Squashes Cucurbita sp,

Socio-economic data

51,072Total9,992 *

3,284

5,594

7,518

13,018

6,991

4,399

276

2006

7.413.9Mexico7.619.3Panama

31.929Nicaragua22.636.3Honduras28.218.9Guatemala18.918.4El Salvador3.815Costa Rica5.3N-DBelize

20052005Year

Agricultural labour % labour force

Source: CEPAL Anuario Estadístico 2006*INEGI Recuento 2005 ( only 5 states )

Illiteracy Rate %Population >15 yr

Populationthousands

Population density: 66.43 hab / sq km

Economic Growth

10636,161.3580,791.7Mexico

2314,312.311,629.8Panama

164,579.93,938.3Nicaragua

197,180.46,024.6Honduras

1321,849.119,288.9Guatemala

1114,634.113,134.1El Salvador

2219,470.315,946.5Costa Rica

311,085.7831.8Belice

%change *1 (b)2000 (a)

Cepal Anuario estadístico 2006 * ( b/a) -1

Millions US $

GDP

Exports

2.7  TOBACCO5.24.94.64.62.4PEANUT

CEPAL Anuario Estadístico 2006

50.9 57.4 39.971.553.2TOTAL

4.62.8BANANAS42.9 4.2 SUGAR

5.24.93.33.9 CATTLE712.15.618.813.7SEA FOOD

14.415.212.88.310.8MEAT 15.117.410.927.123.5COFEE 20052004200220001995

Percentage share of total value of exports

NICARAGUA MAIN EXPORTSExample

Remitances

FDI = foreign direct investment

ODA = official development aid GDP = gross domestic product

154.0%24888.0%100.0%2.5%Mexico

58.0%1556.0%253.0%6.8%Belize

35.0%6435.0%49.0%1.8%Panama

24.0%7960.0%55.0%1.7%Costa Rica

286.0%385.0%582.0%15.1%Honduras

432.0%127.0%310.0%17.8%Nicaragua

756.0%6620.0%655.0%16.1%El Salvador

348.0%3052.0%2145.0%10.0%Guatemala

TourismODAFDIGDP

2004 data

Migrant worker cash remitances as percentage of :

Currently main foreign currency source

Source: World Bank 2005

Sustainability

Biodiversity loss

Soil erosion

Source Global soil degradation. (1997). In UNEP/GRID-Arendal Maps and Graphics Library. Retrieved 19:35, November 17, 2007 from http://maps.grida.no/go/graphic/global_soil_degradation.

Energy and Human development

6.57.0501.0245.072.1118Guatemala4.95.0694.0259.063.6117Honduras5.58.7492.0363.069.3112Nicaragua6.97.6663.0336.046.3101El Salvador--708.0370.025.096Belice

7.67.31733.0930.028.558Panama5.65.52108.0955.013.053Mexico9.910.21764.0964.029.648Costa Rica

 20031980 20031980 2003

Human dev.IndexRank

GDP per energy unit2000 PPP US$ / kg oil

Per capitaelectricity consumption

Traditional fuels% total energy

Source UNDP 2006 Human development report

Domestic Fuel Use

7.911.53.1Other

2.50.84.8Electricity

12.63.424.6Charcoal

45.320.378LPG

5.48.41.4Kerosene

73.695.445.2Fuelwood

GlobalRuralUrban

Household Cooking fuels in Guatemala

ESMAP- world bank 2005

% households

Multiple fuel use

Forest Area

Source Cifor 1996 Square km

288,000

52,000

70,000

68,000

71,000

27,000

1950

95,000193,000Total

21,00031,000Panama

10,00060,000Nicaragua

22,00046,000Honduras

29,00042,000Guatemala

13,00014,000Costa Rica

Forest loss

1990YearFrom 1990 to 2005Central America lost 52,280 Km 2 more.17 % of 1990 Forests 10 % of total area for Central America.

Deforestation

Source: FAO State of the World Forests 2007

Cattle population 1950-1992

Source Cifor 1996 Million head

4.20.61.10.91

0.61950

7.61.22.21.21.51.5

1970

10.11.42.81.82.12

1978

9.61.42.22.12.21.7

1992

TotalPanamaNicaraguaHondurasGuatemalaCosta RicaYear

Land Use

Cash crop production within a capital intensive and export oriented sector.

Cocoa, Coffee, Sugar Cane, Bananas, Sisal, Rubber, Cotton, Soybeans, Beef, Cardamom, Oil Palm, Annato, Jatropha ??

Non sustainable forestry to extract:Chewing gum, Mahogany and other tropical timbers, dyes (palo de tinte), Barbasco, Xate palm leaves.

According to commodity

Consequences: Environmental degradation, poverty, political unrest.

Is bioenergy a new boom?

“booms”

Is there a path for Sustainable

Biomass Energy?

Fao (2007) Sustainable Bioenergy a Framework for Decision Makers

FAO’s 9 key Issues, to consider for bioenergy policy design.

• Ability of bioenergy to provide energy services for the poor.

• Implications for agro industrial development and job creation.

• Health and gender implications of modern bioenergy.

• Implications for the structure of agriculture.

• Implications for food security.

• Implications for government budget.

• Implications for trade, foreign exchange balances and energy security

• Impacts on biodiversity and natural resource management

• Implications for climate change

How do these issues apply in a

real context?

Wood fuel in YucatanMexico

Case study:

Yucatan population 2005

• 1, 800, 000 inhabitants • 36% households, use fire wood • More than 650,000 firewood users.

Wood fuel consumption

Domestic per capita comsumption 2.1 kg / dayHeat equivalent almost 10kW / hr (Sánchez G M 1993 Diaz J R. 2000)

Biomass Alternative

Woodfuel estimated domestic consumption 500,000 ton/year

with efficient stoves 50 % could be saved

which means

250,000 tons / year enough to generate

292 GW/hr electric assuming 30 % efficiency

11 % current electrical consumption in Yucatan.

Other Uses:

Cottage industriesWood fuel is the energy source for many cottage industries. Most can’t afford other fuels

Energy efficiency it usually very low.

Other Uses:

Charcoal

Charcoal Production

Peasants produce charcoal to use wood that otherwise would be burnt, when clearing land for shifting agriculture.

Earth kilns have very low yields No cash investment,

Capital is the scarce production factor

Charcoal marketing chain in Yucatan

Field (Peasant)

$1.30

Small Vehicle owner

½ to 3 tons

Field Agent

Wholesale Merida $1.70

retailer$2.00

Consumer $3.50

Merida Restaurant $2.00

Transport (cost $0.30)

Mexico City Warehouse

(cost $1.70)Mexico City consumer

$7.00

Mexico CityRestaurant

$4.00

Prices per kilogram in Mexican pesos, exchage rate 10.5 per US $

CharcoalCharcoal production transforms forest resources in wages at rural labor opportunity cost.

Imperfect market. Wholesaler has best margin. Waste of natural capital.

Great environmental cost.

Charcoal is:

Clear example of non sustainable resource management.

Subsitence jobs

It takes more than just capital flows for a change.

Implications for thestructure of agriculture

food security

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