BIODIESEL INITIATIVE AT MEXICO

1
BIODIESEL INITIATIVE AT MEXICOS ELECTRICAL
RESEARCH INSTITUTE

• Jorge M. Huacuz
• Non-Conventional Energy Unit
• IIE

2
Mexico in the World Context
3
Briefing on Mexico
USA
Gulf of Mexico
Pacific Ocean
Total land area 2 M km2 Population 103 M (lt20
rural) Official language Spanish Main energy
source oil (90)
Central America
4
Energy in Rural Mexico

• Large population dispersion
• Subsistence farming among peasants
• Low energy use in agriculture (3 of total
  national)
• Diesel fuel 68.8
• Electricity 24.7
• LP Gas 6.5
• High firewood consumption in domestic sector
• Firewood 68.80
• Gasoline 10.43
• LP Gas 9.98
• Diesel fuel 6.33
• Electricity 2.53
• Kerosene 1.58
• Rampant deforestation

5
IIEs Biodiesel Initiative Objectives

• To promote energy security of rural Mexico by
  means of the local production of accessible and
  affordable fuels, while at the same time opening
  new business opportunities for Mexican farmers,
  fostering a cleaner environment and promoting
  sustainable development.

6
Rationale for IIEs Biodiesel Initiative

• Increasing availability of fuels in rural areas
• Extending service hours of diesel-powered rural
  electrification mini-grids
• Opening new business opportunities for peasants
• Protecting the environment
• Reclaiming degraded land
• Shifting energy subsidies
• Facilitating local processing of agricultural
  products

7
Feedstock Options

• Jatropha Curcas

• Palm Oil

8
Oil Palm Distribution in Mexico

• Current Status
• Commercially harvested
• Over 3,000 Ha in production
• Over 10,000 Tons of oil per year
• Basically small rural producers
• Volatile current oil market

9
J. Curcas Distribution in Mexico

• Current Status
• Not commercially produced
• Grows wild in several regions
• Non-toxic variety used for medical
  purposes/cattle feed

Source Jorge Martínez, CEPROBI-IPN
10
J. Curcas World Distribution
Centro de Origen
Toxic J. Curcas
Source Jorge Martínez, CEPROBI-IPN
11
Target Biodiesel Markets

• Current
• Local rural applications (mini-grids, tractors,
  trucks, water pumps, cooking, space heating)
• Metropolitan Mexico city transport system
• Future
• Intercity bus lines
• Export to Europe/US
• Hybrid diesel cars

12
The Metrobus System

• Prospects for biodiesel
• Introduced to lower transit emissions (mainly
  Sulfur and CO2)
• System coverage to be expanded (currently 100
  units)
• Heavy diesel fuel consumer (4,600 Tons/year)

• Already blending-in imported biodiesel in small
  quantities
• 50 of current palm oil production enough to
  cover 100 of Metrobus fuel needs
• Biodiesel nearly competitive with petrodiesel

13
The Jatropha Route

• Daily Metrobus requirements 14,000 lts.
• Required cultivated land area 100 Ha
• Projected levelized production costs 49 US/lt
• Competitive with petrodiesel
• Uncertainties in harvesting costs
• Uncertainties in processing OM costs
• By-products and environmental benefits can
  increase competitiveness

14
By-products from J Curcas
Seeds
Oil extraction
Raw oil
Refining and chemical treatment
Raw glycerol
Refining
Biodiesel
Residue cake
Pure glycerol
Motor fuel
Cattle feed, fertilizer
Chemical industry
Fuente http//usuarios.lycos.es/biodieseltr/hobbi
es4.html
15
Current Cost Trends
Our study
Cited in BIOFUELS FOR TRANSPORTATION. World
Watch Institute, GTZ, BMELV, 2006.
16
Future Cost Trends
Our target
Cited in BIOFUELS FOR TRANSPORTATION. World
Watch Institute, GTZ, BMELV, 2006.
17
Where the Initiative Stands

• Status launched
• Stakeholders
• Electrical Research Institute (IIE)
• Agriculture research unit (CEPROBI-IPN)
• Oil palm producers
• Farmers for Jatropha production
• Potential investors
• Technology market under assessment
• Pilot Jatropha plantation at planning stage
• Business plan under development

18
CEPROBI-IPN Experimental Plantation
March 2005
September 2005
19
Electrical Research Institute
Thank you.....