5th Annual Biodiesel Congress

Argentina:
Perspectives and lessons
from an exporter

Carlos St. James Sao Paulo

President September 1, 2009
Renewable energy as
path to new generation
of leadership:
9 Wind
9 Solar
9 Geothermal
9 Tide
9 Biomass
9 Biofuels
 Biodiesel in Argentina

Production Capacity Trends

3,947
4000 3,697

3500
3000 2,407
thousand tons

2500
2000 1,425
1500
1000 585
500 155
0
2006 2007 2008 2009 2010 2011
Emerging Caste System in Argentina
 Approved Biodiesel Plants
1 Vicentin S.A.
2 Energía Sanluiseña Refinería Argentina S.A.
3 Soyenergy S.A.
4 Advanced Organic Materials S.A.
5 Biomadero S.A.
6 Renova S.A. (Vicentin/Glencore)
7 Ecofuel S.A. (AGD/Bunge)
8 Unitec Bio S.A.
9 L.D.C. Argentina S.A. (Dreyfus)
10 Molinos Rio de la Plata S.A.
11 Explora S.A.
12 Patagonia Bioenergía S.A.
13 Ecopor S.A.
14 Energías Renovables Argentinas S.R.L.
Biodiesel prices, fob Rosario
Monthly Biodiesel Production
in Argentina, 2008-2009

Industry
capacity
Top Ten Biodiesel Producers in 2007

Country Production*
1 Germany 2,890
2 USA 1,521
3 France 872
4 Malaysia 400
5 Italy 363
6 Brazil 356
7 Austria 267
8 ARGENTINA 180
9 Portugal 175
10 Spain 168

* in thousands of tons

Sources: EBB/Europe, NBB/USA, ANP/Brazil, CADER/Argentina

Top Ten Biodiesel Producers in 2008
Rank Country Production* Change 2007
1 Germany 2,819 -3%
2 USA 2,327 +53%
3 France 1,815 +108%
4 Brazil 1,027 +189%
5 ARGENTINA 960 +433%
6 Italy 595 +64%
7 Malaysia 420 +5%
8 Belgium 277 +67%
9 Poland 275 +244%
10 Portugal 268 +53%
11 Denmark/Sweden 231 +56%
12 Austria 213 -20%
13 Spain 207 +23%
14 UK 192 +28%
15 Slovakia 146 +217%
16 Greece 107 +7%
17 Hungary 105 +1500%
18 Czech Republic 104 +70%
… Indonesia 80 -12%
… Colombia 23 NA
* in thousands of tons
Argentine biodiesel industry challenges

Europe: industry adversely affected by Argentine biodiesel.

Established GHG minimum reductions in biofuels beginning
2010. Soy-based biodiesel doesn’t meet new minimum
requirements.

USA: EPA published government’s new push for biofuels,

focusing on second and third generation technologies. Also
closing the door on first generation biofuels, which includes soy-
biodiesel.
EU requirements for reductions in GHG emissions
MINIMUM REQUIRED TO ENTER THE EUROPEAN MARKET: 35%

Feedstock Used % Reduction in GHG

Biodiesel from animal fat (Paraguay, Uruguay, USA) 83%
Ethanol from sugar cane (Brazil) 71%
Biodiesel from palm (Colombia, Malaysia) 56%
Biodiesel from sunflower 51%
Biodiesel from rapeseed (Europe) 38%
MINIMUM REQUIRED TO ENTER THE EUROPEAN MARKET: 35%
Biodiesel from soy (Argentina, USA, Brazil) 31%
Biodiesel Lifecycle GHG Results
International Land Use Change: a Hot Topic
Future biofuels production according to type: USA
Other
Cellulosic Biomass-based Diesel Other Advanced Biofuel Renewable
Biofuel Fuel TOTAL
NCP CP RENEWABLE
Cellulosic FAME Renewable Renewable Imported Corn FUEL
Year Ethanol Biodiesel Diesel Diesel Ethanol Ethanol
2009 0.00 0.50 0.00 0.00 0.50 9.85 10.85
2010 0.10 0.64 0.01 0.01 0.29 11.55 12.60
2011 0.25 0.77 0.03 0.03 0.16 12.29 13.53
2012 0.50 0.96 0.04 0.04 0.18 12.94 14.66
2013 1.00 0.94 0.06 0.06 0.19 13.75 16.00
2014 1.75 0.93 0.07 0.07 0.36 14.40 17.58
2015 3.00 0.91 0.09 0.09 0.83 15.00 19.92
2016 4.25 0.90 0.10 0.10 1.31 15.00 21.66
2017 5.50 0.88 0.12 0.12 1.78 15.00 23.40
2018 7.00 0.87 0.13 0.13 2.25 15.00 25.38
2019 8.50 0.85 0.15 0.15 2.72 15.00 27.37
2020 10.50 0.84 0.16 0.16 2.70 15.00 29.36
2021 13.50 0.83 0.17 0.17 2.67 15.00 32.34
2022 16.00 0.81 0.19 0.19 3.13 15.00 35.32

Besides corn ethanol,

An example of this
category is bagasse
ethanol from Brazilian
sugarcane
includes biogas, BTL,
The study assumes and biodiesel from
this will come from jatropha, algae and
Brazil. palm oil
Source: EPA’s DRIA, page 69
 Energy Matrix of Argentina vs. World

Argentina World

Petroleum 38% 36%

Natural Gas 52% 23%

Coal 1% 28%

Nuclear 3% 6%

Renewables/Hydro 5% 7%

Sources: Secretaria de Energía Argentina; Cámara Argentina de Energías Renovables

Argentine Diesel Imports
Cost of Argentine Diesel Imports
 Gracias!

Cámara Argentina de Energías Renovables

Argentine Renewable Energies Chamber
Viamonte 524, Suite 102
C1053ABL – Buenos Aires
Argentina
Tel/Fax: 011-54-114-515-0517

www.ArgentinaRenovables.org
cstjames@cader.org.ar
Diesel Consumption in Argentina
Percentage of Diesel Consumption
that is Imported

If implemented
sooner, the
domestic B5
requirement
could have
replaced this
much imported
diesel
 Biodiesel unfairly subsidized?
World market Argentina

Biodiesel
US$1,100/ton
Export tax on
soy oil = 32%

Soy oil
US$1,000/ton

Internal price
of soy oil
US$760/ton