Slide sem ttulo

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Brazilian Biodiesel Program Quality of
Product Brazilian German Workshop on
Biodiesel Fortaleza, 1st July 2005
ANP (BRAZILIAN PETROLEUM, NATURAL GAS,
BIOFUELS REGULATORY AGENCY)

Rosângela M. Araujo
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• OUTLINE
• Energy matrix and petroleum industry
• ANPs attributions concerning biofuels
• Current activities and next steps
• Fuels Quality Monitoring Program
• Outlook

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Brazilian Energy Matrix
2004
Source MME / 2004
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Petroleum Products Output 2004
2004
Source ANP
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Vehicle Fuel Matrix
Consumption 2004
Ethanol 14,7
8,4 Anhyd. Ethanol 25,4 Gasoline A
Volumetric Basis
Source ANP Jan 2005 and IBP Jan 2005
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Petroleum Products Output 2004
Production and International Trade 2004
volume
99,9 Mm³
Source ANP and MAPA
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Legal Basis
Laws 9.478/1997 and 11.097/2005

• Art. 8º - Attributions of ANP
• I - to implement the national policy on
  petroleum and natural gas, with emphasis in
• guarantee of petroleum products and biofuels
  supply
• protection of consumers interests regarding
  PRICE, QUALITY and OFFER of products.
• XVI - to regulate and authorize the
  activities related to production, import, export,
  storage, distribution, retail and
  commercialization of Biodiesel enforcement
  action directly or by agreement with other
  entities of Union, States or Cities
• XVIII - to specify the quality of
  petroleum and natural gas products and biofuels.

B2 in 2008 and B5 in 2013 Nation-wide (mandatory)
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BIODIESEL
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Biodiesel Program

• Introduction of biodiesel to the domestic market
  allows to
• reduce imports of petroleum-derived diesel fuel
  
• generate significant hard-currency savings
• protect the environment
• promote the social inclusion of Brazilians.
• Result of joint efforts by the Government in
  collaboration with the automotive and fuel
  industries as well as the agricultural sector and
  research and development, financing and
  regulatory bodies.
• The implementation contemplates the specific
  characteristics of each region insofar as oilseed
  types are concerned and does not exclude any
  alternatives.
• Prioritizes participation by family agriculture.

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Oilseed Production
Brazil has climate conditions and land for
oleaginous production throughout our territory.
NORTH Palm / Soybean
90 Million hectares for agriculture
MIDWEST Soybean / Castorbean/ Cotton / Sunflower
NORTHEAST Soybean / Castorbean/ Palm / Cotton /
Babassu Palm
SOUTH Soybean / Rape / Sunflower/ Cotton
SOUTHEAST Soybean / Castorbean / Cotton /
Sunflower
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Biodiesel Program
The Role of ANP

• To create a specific regulatory framework that
  makes biodiesel competitive with petrodiesel,
  taking into account the wide variety of oilseeds
  available to introduce measures to guarantee
  supply in compliance with fuel quality standards
  and the Brazilian Government social inclusion
  policy.

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Biodiesel Supply Chain
By-products
Toxic and removable by treatment
Peel Compost and Fertilizer production
Market
Alcohol
Pulp Ration
Glycerin
B100
Cake
Agricultural Chain
Consumer
B2
Crude Oil
Grain
B2
B100
Service Station
Supplier
Crushing
Biodiesel Producer
Plantation
B100
B100
TESTS
Consumer
Refinery
B100 ONLY WITH ANP AUTHORIZATION
Engine Manufacturers
Consumer
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Biodiesel Production Capacity in Brazil
FERTIBOM Catanduva-SP sunflower, soy, babassu
palm, cotton, macaúba, ethanol
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Biodiesel Specification
ANP Act n 42/2004

• Focus
• Biodiesel specification based on
• physical and chemical properties and not on
  feedstock source, or on processing methods
• properties needed for satisfactory operation of
  the vehicle and engine.
• Discussed with the parties affected by the
  specification.
• Established the biodiesel specification (B100)
  to be blended to diesel (B2).
• Commercialization of B100 with Quality
  Certification in proper or contracted laboratory.
• Blended B2 must meet diesel specification (ANP
  Act n 310/2001).
• Other blends (more than 2) must comply with ANP
  Act n 240/2003 for tests and experimental use.

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Biodiesel Specification
ANP Act n 42/2004 Technical Act

• Product Certification 15 properties
• Quarterly Analysis 10 properties
• Reference method to analyze glycerol, mono-,
  di-, triglyceride specific for biodiesel from
  castorbean developed by CENPES (Petrobras
  Research Center).

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Biodiesel Specification
Production Analysis Quarterly Analysis
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Biodiesel Specification
Production Analysis Quarterly Analysis
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Diesel and B2 Specification
ANP Act nº 310/2001
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Engine tests - biodiesel/diesel blending

• Task Force Technological Development
• Coordinator Ministry of Science and Technology
• Partners Brazilian Government, ANP, Research
  Institutes
• and Automotive Industry
• Objective development and monitoring of Tests
  in Engines with Biodiesel, focusing on gradual
  increase of biodiesel content in the blending.
• Steps
• definition of procedures and parameters
  concerning the bench and field tests (finalized
  March 2005)
• start with field tests (castor and soy bean B5
  using ethanol - Cia Ipiranga de
  Bebidas/ANFAVEA/LADETEL-USP)(ANP authorization)
• next tests B20 and B100 obtained from soybean
  and castorbean.

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Other Actions in Course

• Coordination of crosschecking program.
• Discussion with INMETRO regarding accreditation
  of biodiesel analysis methodologies.
• Establishment of a Task Force in the ABNT
  responsible for publishing brazilian standards
  and procedures (store and transport) for
  biofuels.
• Insertion of biodiesel in the current Fuels
  Quality Monitoring Program executed by ANP.
• Definition of Biodiesel Marking Program required
  by law in order to identify quantity and source
  of biodiesel after blending with diesel.

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FUELS QUALITY MONITORING PROGRAM
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Fuels Quality Monitoring Program
Universities and Research Centers
Submitted to Bid Process
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Fuels Quality Monitoring Program
150.000 samples
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Fuels Quality Monitoring Program
Fuel non conformities in Brazil
Accumulated 2005
May/2005
Hydrous Ethanol
Diesel
Gasoline
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Final Consideration Quality Concern

• An industry driven quality spec (uniformity and
  consistent quality).
• Combines brazilian spec with a quality assurance
  program (product and procedure)
• Storage and Handling
• Sampling
• Testing
• Blending
• Distribution
• Fuel Management Practices

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Final Consideration Overall Vision
Product Quality meets spec Proper Storage,
Handling and Blending Procedures
Biodiesel Image for Consumer Credibility of
Biodiesel Production and Use Program
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Outlook

• Continue the implementation of biofuels policy in
  order to have a diverse and sustainable energy
  matrix reinforced by renewable sources.
• Perform an active institutional role on issues
  related to the monitoring of the market regarding
  price, quality and supply.
• Support this new cycle of energy sector with the
  introduction of biodiesel.
• Carry out research and regulating improvements to
  promote the development of biofuels industry
  regarding quality and supply.

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ANP - Brazilian Petroleum, Natural Gas,
Biofuels Agency http//www.anp.gov.br CRC
(Customer Relation Service) 0800900267
rmoreira_at_anp.gov.br Phone [phone] Fax
(21) 3804-0532