POWER February 2012 - 57

POWER IN BRAZIL
5. Bioenergy. Areva Koblitz's 33-MW Ibitiuva biomass power plant is located in Pitangueiras,
São Paulo state. Courtesy: Areva Koblitz
" With today's price of wind energy under 100
reais per MWh, only those projects that are really
profitable and excellently managed will be
sustainable in the long term. This consideration
applies especially for those projects developed
by private companies. As for public ones, sustainability
is guaranteed given that they can
work with lower rates of profitability. "
The continued development of what remains
a relatively young industry, and full
exploitation of its potential, will require further
regulation geared specifically toward the
wind sector.
According to Marcelo Hutschinski, sales
director at Vestas's Brazil operations: " We
need to move towards establishing a more
regulated market in order to encourage continued
investment into factories and the industry
as a whole. "
Biomass. Brazil's focus on renewables extends
to the development of various biomass
projects, which flourish in the country thanks
to its favorable climate and vast areas of arable
land. An established core of local companies
and international players has taken an
increased interest in the country's efforts to
include biomass in the generation mix.
André Luis Salgado, managing director of
Areva-Koblitz, multinational Areva's merger
and acquisition with the local Koblitz, explained
that the company's Brazilian operations
account for 60% of Areva's global
biomass business (Figure 5). " Our most important
contribution is that we have the knowhow
to integrate all the necessary equipment
that allows us to deliver our projects on a
turnkey basis, " he explained. " This expertise
has made Areva a well-established leader of
the Brazilian bioenergy market. " In the past
decade, Areva diversified its operations, becoming
a supplier of energy generation and
cogeneration for many different industries.
As Brazil is the leading producer of ethanol
worldwide, many companies are examining
biomass projects in order to complement the
system as a whole. " The weather conditions in
Brazil are very good for biomass production; we
February 2012 | POWER
have good soil, plenty of sun, and lots of water-all
of which are important to having huge
productivity, " said Felipe Barroso, CEO of Bio
Energias, a biomass-focused project developer.
Land usage, often a target for criticism from
those who claim biomass cultivation pushes up
food prices, is relatively uncontroversial in a
country as large as Brazil. Roughly 8.5 million
acres of farmland are used for ethanol production,
compared to just under 500 million acres
used for cattle ranching. " In Brazil we can grow
the bioenergy business without jeopardizing the
food market; growth can be sustained through
an increase in productivity, " said Areva's Saldago.
" Moreover, land availability in Brazil means
that, unlike in Europe, there is not a tradeoff
between harvesting for food or energy; we can
grow bioenergy without compromising food
production or affecting the environment. "
The use of sugarcane to produce ethanol also
makes more efficient use of land than some
other alternatives. " Sugarcane ethanol is the
best renewable fuel compared to other crops
such as corn or wheat; for each unit of energy
consumed in the production process, you get
9.3 units output in terms of energy, compared
to three units with other methods, " said Marcelo
Mancini Stella, executive director for commercial,
logistics, and supplies at ETH Bioenergia, a
bioenergy company within the Odebrecht group
aiming to produce 3 billion liters (0.79 billion
gallons) of ethanol and 2,700 GWh by 2013
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57
6. Triple duty. ETH Bioenergia's Eldorado
plant in Rio Brilhante, Mato Grosso, was acquired
in 2008. The Odebrecht Group, ETH Bioenergia's
parent company, decided to enter the sugarcane
and ethanol market by acquiring the Alcidia and
Eldorado mills. Both produce ethanol, sugar, and
electricity. Courtesy: Bio Energias

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POWER February 2012

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