Advanced BioFuels USA

Panel of Experts discussing “Ethanol and Economic Development” at Datagrow 2016 conference

by Laís Forti Thomaz* (Advanced Biofuels USA) On October 17-18, 2016, Datagro held its 16^th International Conference in Sao Paulo, Brazil. Once again, this event reunited many great specialists of the sector. Innovations and public policies were the key issues discussed.

Nissan new technology promises a revolution

The main highlight of the event was the promotion of Nissan New technology for cars using e-bio cell fuel. The Solid Oxide Fuel-Cell (SOFC) powered-prototype vehicle was first launched during the Olympic games in August. The  Nissan new car model runs on 100 percent ethanol. Through a chemical process with oxygen called reformation, the SOFC system transforms ethanol into hydrogen that produces electricity.

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Nissan’s Haruhito Mori explains the new ethanol-powered EV technology

E-bio Cell Fuel technology could be the best way to avoid the EV issues about battery charge or supply infrastructure. It also enables a cruising range of more than 600km. This is a carbon neutral system because the CO2 emitted during this process is neutralized from the growing process of feedstock making up the biofuel. This eco friendly car can be a new and great incentive for the Brazilian industry market.  More tests are going to be necessary but Nissan expects to produce this new model at commercial scale in 2020.

Haruhito Mori, General Manager, EV System Laboratory, Research Division, emphasized that at this moment Nissan’s focus is on Brazil as the biggest market using E100, but they are also targeting other sugarcane ethanol producers like East Asia, Thailand and Philippines. He also said this car could use water blended  ethanol.

Nissan’s Haruhito Mori

Listen to his comments here:

Fermentec’s President, Henrique Amorim, presents newly patented StarchCane.

A Corn-Sugarcane Integrated Mill

Fermentec presented its newly patented StarchCane®. In this new process “cane-based must/molasses as starch polysaccharides are inoculated in its active phase and do not require the propagation phase.” Henrique Amorim, President of Fermentec, highlighted the benefits of this new process including a faster fermentation period and greater DDG/ton corn with greater concentration of proteins and amino acids.

He said it will be possible to utilize the same distillery used for sugarcane ethanol production with some adjustments, depending on the existing structure.  READ MORE

Paulo Pedrosa, Brazil’s Interim Mining and Energy Minister

Brazilian Government Support

Sao Paulo and Goias Governors represented the support of the state governments. Sao Paulo is the state where ethanol has the biggest incentive due to a discount from the State tax called ICMS. Marconi Perillo, the governor of Goias, stated the he will request at the World Health Organization (WHO) a surcharge on the use of fossil fuels.

Paulo Pedrosa, the interim Mining and Energy Minister, declared that the federal government will not interfere in the prices but he did not rule out the issue involving the CIDE  (Contribution for Intervention on the Economic Domain) applied to gasoline and diesel as an environmental tax.

Regional and Local Benefits

Academic studies reinforce the local benefits of the sugarcane supply chain. Profs. Marcia Moraes (ESALQ/University of Sao Paulo), Carlos Eduardo Caldarelli  (Londrina State University) and Marcos Fava Neves  (FEA/University of Sao Paulo) have shown how the growth of sugarcane and ethanol mills  impacts municipal GDP: “The cumulative direct and indirect effects increased the real municipal GDP per capita by 1028 $ in the host municipalities and by 324 $ in each of their 15 closest neighboring municipalities.”

Their works have shown that the existence of the plants not only contributes to an increase in production but also positive externalities due to better socio-economic conditions, which results in a better Human Development Index (HDI). These impacts can persist for at least 10 years after operations begin.

These are strong arguments for the industry to demand more governmental incentives in order to have economic stability and to be able to increase its investments over the country.  READ MORE and MORE

* Contributing author, Laís Forti Thomaz, is a Ph.D. in International Relations, Unesp/Unicamp/PUC-SP, São Paulo, Brazil and researcher at National Institute of Science and Technology for Studies on the United States (INCT-INEU)

Photos by L.F.Thomaz