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May 2009
Biofuels Sector
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NAME REGIONCAPACITY
(lt/day)
INCAUCA Miranda, Cauca 300.000
PROVIDENCIA Palmira, Valle 250.000MANUELITA Palmira, Valle 250.000
MAYAGEZ Candelaria, Valle 150.000
RISARALDA La Virginia, Risaralda 100.000
TOTAL 1.050.000
At the moment Colombia has a production
output of over 1 million liters of ethanol.
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Current and future ethanol proyects willdouble Colombia ethanol output in the next
couple of years.
NAME REGIONCAPACITY
(lt/day)TYPE OF
CROP
GPC Puerto Lpez, Meta 20.000 CassavaRIOPAILA Zarzal, Valle 300.000 Sugar cane
BIOENERGYPto. Lpez Pto.
Gaitn, Meta300.000 Sugar cane
MAQUILTEC Tuta, Boyac 300.000 Sugar beetAlcoholes
QuindianosAsociados
Valle R. La Vieja,Quindo
150.000 Sugar cane
EthanolConsortium Board
Marialabaja, Bolvar 300.000 Sugar cane
Total 1.370.000
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Domestic Biodiesel production will reach500,000 tons by the end of the year 2009.
NAME REGIONCAPACITY
(lt/year)YEAR
OLEOFLORES Codazzi, Cesar 50.000 Jul-2007ODIN ENERGY Santa Marta, Magdalena 36.000 Mar-2008
BIOCOMBUSTIBLESSOSTENIBLES DEL
CARIBESanta Marta, Magdalena 100.000 Feb-2009
BIO D Facatativ, C/marca 100.000 Abr-2009
MANUELITA San Carlos de Guaroa, Meta 100.000 Jun-2009
ECODIESEL Barrancabermeja 100.000 Sept-2009
BIOCASTILLA Castilla La Nueva, Meta 10.000 Sept-2009
TOTAL 496.000
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Demand for ethanol and biodiesel willincrease five fold by the year 2020.
0
50
100
150
200
250
300
2008 2010 2015 2020
EthanolBiodiesel
Source: UPME, MME
Milesdeg
alones
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Because there are more than 7 million hectares of
available land to develop large scale projects
Colombia has 7 million hectares of available land in which to plant and grow crops
destined for the biofuels industry. This land does not compromise Colombias rainforests or
otherecological reserves..
Zones with high
potential for
ethanol production
Zones with high potential
for the production of palmoil
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Colombia has three times the amount of availableland to develop biofuel projects than Malaysia
Land uti lization (Colombia vs. Malaysia)
Sources: Food and Agricultural Organization, United Nations
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Colombias available land amounts toaround 90% of land currently devoted to
cultivating biocrops in Brazil
Colombiahasthepotential
to
be
one
of
thecountrieswiththelargestlandextensiondevotedtoplantingandharvestingofbiocropstosupplyethanolandbiodieselprocessingplants
Land used to plant Biocrops (millions of hectares)
Source: International Energy Agency (IEA)
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Colombias sugar industry is the most productiveworldwide and the palm oil industry is the most
productive in the region
Colombiasurpasses
Brazils
andEcuadorssugar
productivitylevelsby50%and55%respectively.ThesugarindustryinColombia
isaworldleaderinproductivitybeingableto
produce9,000litersofethanolperyear/ha.
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In palm oil production, Colombiasproductivity levels are twice those of Ecuador
and surpass Brazils by 50%.
In palm oil production,Colombias productivitylevels are twice those of
Ecuador and surpass
Brazils by 50%. Colombia
can produce 4,200 liters of
biodiesel per hectareannually.
Palm oil process
Palm oil
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Colombia has centered its
biofuel production on sugarcane and palm oil;.Energy efficiency of biocrops used in the production ofethanol and biodiesel
barrels/ ha/ year
ETHANOL Biodiesel
Source: Ministry of Mines and Energy according to Goldman Sachs y LMC
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Because Colombias internal demand isnot fully covered by local production of
biofuels as well as the existence of a lawthat requires the mix of biofuels withfossil fuels
Productionofethanolonly
meets66%ofestablished
demand Productionofbiodieselmeets20%
oftheestablisheddemand
GovernmentmandatedmixofE20B20by2020. Colombianlaw
currentlymandatesa10%blendofethanolin gasolineanda5%blendof
biodieselindiesel.
By2020,localdemandforethanolisexpectedto
increase500%fromcurrentlevelswhilethe
demandforbiodieselshouldincrease700%.
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Because Colombia offers investors aflexible and progressive legal
framework regarding Biofuels
Single Enterprise Free Trade Zone: In Colombia new agribusiness projectsof Biofuels can be granted the status of Free Trade Zones in any place of the
country as a Single Enterprise Free Trade Zone
Investment in Millions or Outsourced Jobs
USD $ 16.94 500
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Income Tax Exemption for 10years:
Cultivo de Palma Africana
Palma Africana
Colombia offers an Income Tax exemption for new late yield crops, like Africanpalm, planted between 2003 and 2013. These plantations will have a 0% income tax rate for
10 years form the moment they are planted
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Legal Stability Agreements for
up to 20 years
ColombiaoffersinvestorstheopportunitytosignaLegalStabilityAgreement foraperiodofupto20years.Thismechanismallowstheinvestortoinsurethatthelawsandtheirinterpretationwillbeapplicablefromthemomenttheysignthecontractforupto20years
Objective
Requirements
Term
Guarantees legislation and currentadministrative interpretation of thatlegislation
Minimum investment requirement of
USD 1,690,000.Payment of a premium equivalent to 1%of the investment made
Up to 20 years
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