V Encontro de Pesquisa e Inovao Embrapa Agroenergia

V Encontro de Pesquisa e Inovação – Embrapa Agroenergia Outubro 2018 Brasília - DF

How is the corn ethanol chain?

Products resulting from the industrial process (/ton of corn): - Ethanol – 420 liters; DDGS – 300 Kg; Corn Oil – 15 liters. Co-generation of electric power.

SCENARIO FOR ETHANOL IN BRAZIL ETHANOL DEMAND SCENARIO: • End of the gasoline prices manipulation; • Oil prices in international markets; • Recovery of the economy - growth returns; • Environmental commitments made at COP 21; • Renovabio – Brazilian program for reduction of CO 2 emitions – premium for biofuels

SCENARIO FOR ETHANOL IN BRAZIL Current production vs. future demand: - 2018: 30, 5 MM de m 3; 2030: Demand of 55 a 60 MM m 3; Need to double production Industry Forecast: + 70 to 80 New Ethanol Plants.

SCENARIO FOR DDGS DEMAND SCENARIO FOR DDGS: • Intense movement to improve beef and dairy cattle productivity - Technological advance; • Adaptation of the DDGS for pork and poultry; • Internalized production - near to demand; • Mato Grosso State - 30 MM beef cattle heads.

OTHER CHARACTERISTICS OF BRAZILIAN CORN ETHANOL PRODUCTION • Abundance of raw material - Brazil exporter of corn (30 MM tons in 2017); • Concentration of investments in the Midwest, mainly in MT State - price and supply of Corn / DDGS demand; • Possibility of storage and purchase corn in the future market; • Fast response to increasing demand; • Smaller investment for an ethanol plant - high yield flex and full.

ACTUAL PROJECTS

CHALLENGES AND OPPORTUNITIES CHALLENGES: • Biomass supply; • Logistics - Access to North and Northeast Markets / South and Southeast; • Tax sistem adapted to the new production chain; • DDGS standardization; • Renovabio Regulation;

CHALLENGES AND OPPORTUNITIES: • Improvement of the national fuel matrix; • Value aggregation and development generation in the corn production chain; • Development of other value chains (timber, feed, animal protein, logistics, etc).

THANKS! Ricardo Tomczyk – CEO ricardo@etanoldemilho. com. br