The Hemispheric Energy Puzzle

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The Hemispheric Energy Puzzle
2006.11.27

• Where does the Biofuels Piece Fit?

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Fuel Substitution in the Americas
Increase GDP Create Jobs
Reduce GHG Emissions
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Reduce Energy Dependence
The hemispheric oil supply will meet less than
one-half of the regions demand by 2030.
Source Cambridge Energy Research Associates,
Asian Phoenix Scenario
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Fuel Substitution in the Americas
Brazils recent experience with FFV provides an
excellent example of fuel switching.
Source Brazilian National Automotive
Manufacturers Association, TMA-MO forecasts
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Fuel Substitution in the Americas
Brazils FFV experience has seen hydrous ethanol
demand nearly double to 20 of the fuel mix in
three years.
Source Brazilian National Petroleum Agency (ANP)
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Fuel Substitution in the Americas
By 2015, 60 of all Light Commercial Vehicles
will be FFV and gasoline will account for only
40 of fuel consumed.
Source Brazilian National Petroleum Agency (ANP)
TMA-MO forecasts
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Fuel Substitution in the Americas
US Flex-Fuel vehicles will reach 19 million by
2015 and, more importantly. use of E-85 in that
fleet will rise significantly.
Source Harts Energy Publishing, 2006
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Societal Environmental Impacts
Ethanol offers significant well-to-wells CO2
emission reductions.
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Economic Impact Job Growth

• Ethanol production in Brazil clearly
  demonstrates massive job creation benefits in
  comparison to the petroleum sector.
• Oil hydroelectric power are capital intensive
  enterprises that do not produce long-term job
  creation.

JOBS
Source Regina Machado Leao, Alcool Energia
Verde, p 167.
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Economic Impact Job Growth
In the US, the impact of 300 million gallons of
ethanol production in a state is substantial.
Source Minnesota Department of Agriculture,
Economic Impact Assessment, 2003, p. 9.
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OPTIONS TO INCREASE RENEWABLE FUELS PRODUCTION

• Use tax incentives to promote alternative
  powertrain vehicles and renewable fuels.
• Increase RD for cellulosic ethanol production.
• For each individual country, using ethanol as a
  stand-alone fuel (E-100 or E-85) should be
  studied to see if supply can meet demand.
• Choosing between anhydrous E-85 or hydrous E-100
  as the hemispheric ethanol fuel standard would
  help automakers achieve economies of scale in
  engine production.

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END OF PRESENTATION
THANK YOU!