BRAZILIAN MARKET ETHANOL ETHANOL FUEL OF THE FUTURE

BRAZILIAN MARKET ETHANOL

ETHANOL FUEL OF THE FUTURE (Henry Ford - 1906) Ethanol first became popular as a fuel with the model T. (above) Henry Ford mixed ethanol with gasoline to run this machine. In 1850, 90 million gallons were produced in The United States.

The Bazilian Ethanol Programme Pro Alcohol Adopted in 1975 due to the international petrol crisis: 1 – Adding ethanol to gasoline 2 – Incentive for development of vehicles 100% on ethanol Why Ethanol? - Brazil has been one of the main producers of sugar cane since century XVI. - Since 1930 (especially during the 2 nd World War), ethanol mixed with gasoline has been used as automotive fuel in Brazil with good results. 10/3/2020

Domestic sales of automobiles and light vehicles per fuel 10/3/2020 Source: Anfavea

Productive Chain of Sugar in Brazil 5, 4 million hectars 72 thousand growers Harvest 380 million tons ETHANOL SUGAR 3, 6 billion gallons 24 million tons 334 mills & destilleries (operation & projects) BAGASS Bioplastic Ethanol Derivatives Food Pharmacy Lisine Credits of Carbon

BRAZILIAN PROCESS 10/3/2020

Evolution of sugarcane in Brazil +69% 10/3/2020 Fao Stat database

Evolution of sugarcane in Brazil + 420 % 10/3/2020 Fao Stat database

New expansion areas for sugar cane growing AMAZON RAIN FOREST Pantanal Sugar Cane Atlantic Rain Forest 10/3/2020 Sources: IBGE & CTC

06/07 04/05 02/03 00/01 98/99 96/97 94/95 92/93 90/91 88/89 86/87 84/85 82/83 80/81 78/79 14 76/77 16 74/75 72/73 70/71 Billion of liters Ethanol Brazilian Production 18 Anydrous Hydrated Total 12 10 8 6 4 2 0

Thou. Million of liters Ethanol production projection in Brazil between harvests 2005/06 and 2015/16 Harvest 10/3/2020 Source: IEA

Brazilian Ethanol Exportation Projection 4. 5 4. 0 Billion of liters 3. 5 3. 0 2. 5 2. 0 1. 5 1. 0 0. 5 0. 0 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10

Energy Matrix 2005 10/3/2020 Source: MME

Benefits to the ozone layer in the Atmosphere Gasoline 0% 10/3/2020 Gasohol 22 % Ethanol 100% Source: ANFAVEA

10/3/2020

Ethanol Cluster - APLA is an entity that seeks to unite all the ethanol productive chain, which is composed of industries that produce equipment, research and technical development centers, associations of the ethanol sector and producers: - 10 distilleries - 70 industries - 05 Institutions and Research and Development Centers - 19 Public and Private Entities - Harvest - 16, 7 million tons - Ethanol Production - 502 million liters - Sugar - 1. 380 thousand tons - Energy - 172. 900 mw/year 10/3/2020

APLA - Objectives - Planning and Organization of the Sector. - Association with government and private entities for development of the ethanol productive chain. - Advertisement of the products and services rendered by the companies. - Statistical Data Bank and Information Center. - Standardization and certification of ethanol and development of new technologies & equipment. - Development of executive project for logistic and production flow of the Ethanol Cluster area. - Studies and researches for new applications, markets and products derived from ethanol. 10/3/2020

New projects of distilleries anywhere in the world Products, Services and Brazilian. Technology Available - Economical feasibility studies and analysis of area/soils and weather feasibility - Supply of sprouts and productive & resitant genetic diversity 10/3/2020 Photo: Unica - Technology for plague control and combat

Products, Services and Brazilian Technology Available - Machinery and Equipment for cutting, loading and transportation Photo: Motocana Photo: Dedini - “Turn-Key” Plants. Sugar & Ethanol Plants. Ethanol Destilleries. Energy co-generation using bagass. Biodiesel Plants - Consulting and follow-up of all process of the productive chain 10/3/2020 Photo: Unica 10/3/2020 - Professional Qualification

BUSINESS PROPOSALS 1 – Ethanol Production Projects anywhere in the world: . Supply technology, render services and products. Studies of Economical Feasibility. Projects Implementation 2 - Exportation of Brazilian ethanol to the United Kingdon: . Strategic plan. Public policies. Local fuel distributors. Contacts with Brazilian producers. Logistic operators and traders 10/3/2020 3 – Association with Brazilian companies for production of ethanol in Brazil. Contact with Producers Associations. Brazilian society legislation. Economical feasibility projects. Research Centers and Universities

APLA - Members Ministério de Desenvolvimento, Indústria e Comércio Exterior 10/3/2020

Contacts APLA – Ethanol Cluster Municipal Department of Industry and Commerce of Piracicaba São Paulo - Brazil Phone: 55 19 3403 -1160 E-mail: semic@piracicaba. sp. gov. br 10/3/2020

THANK YOU Luciano Santos Tavares de Almeida Secretary of Industry and Commerce Piracicaba - São Paulo - Brazil Tel: 55 19 3403 -1160 E-mail: l. almeida@piracicaba. sp. gov. br 10/3/2020