Small-scale biodiesel production as an alternative for agro-industrial diversification

172 Pages·2016·3.75 MB·English

Small-Scale
biodieSel production
aS an alternative for
agro-induStrial
diverSification
The Brazilian experience
Small-scale biodiesel production
as an alternative for
agro-industrial diversification
The Brazilian experience
Edited by
Ronaldo Perez
Aziz Galvão da Silva Jr
Marina Barbosa Passos
Carlos A. da Silva
Food and Agriculture Organization of the United Nations
Rome, 2016
This document is unedited and made available as presented by its authors.
Cover photo:
Soybean field
(United Soybean Board – under a Creative Commons Attribution 2.0 licence)
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iii
Contents
PREFACE viii
EditORiAl syNthEsis: BiOENERgy AgRO-iNdUstRiEs tO sUPPORt RURAl dEvElOPmENt ix
Roberto Cuevas-García and Carlos A. da Silva
CONtRiBUtORs xviii
ACRONyms xix
Chapter 1
Concepts 1
Mariana Barros Teixeira; Marina Barbosa Passos; Ronaldo Perez; Aziz Galvão da Silva Jr
Chapter 2
Bioenergy overview 5
Marina Barbosa Passos, Thomás Valente de Oliveira, Ronaldo Perez and Aziz Galvão da Silva Jr
Chapter 3
Historical overview of Brazilian biofuel policies 9
Marina Barbosa Passos; Jonas Roberto Barrél; Ronaldo Perez; Aziz Galvão da Silva Jr
Chapter 4
Brazilian market of major oilseeds, oils and meals for the production of biodiesel 27
Karina Rogério de Oliveira Viana; Ramon Barrozo de Jesus; Ana Carolina Alves Gomes;
Ronaldo Perez; Aziz Galvão da Silva Jr
Chapter 5
Biodiesel: The creation of public policies for social and economic development 41
Edna de Cássia Carmélio
Chapter 6
The Social Fuel Seal Program: Assuring the participation of small-scale producers
(family farming) 55
Edna de Cássia Carmélio; Luis Felipe Sad Grossi
Chapter 7
Agricultural technology: The importance of integrated fuel and food chains 69
Luiz Antônio dos Santos Dias; Marcelo Dias Müller; Elizabeth Nogueira Fernandes;
Denise Cunha Fernandes dos Santos Dias
Chapter 8
Oilseed intercropping: making biodiesel production feasible 79
Ramon Barrozo de Jesus; Aziz Galvão da Silva Jr; Ronaldo Perez
Chapter 9
Vegetable oil extraction for the production of biodiesel 85
Marco Túlio Coelho Silva; Marina Barbosa Passos
iv
Chapter 10
Use of oil extraction by-products as feed 103
André Soares de Oliveira
Chapter 11
Promoting investment in biodiesel agro-industrial chains:
Methods of analysis and BiodieselFAO 111
Moacir Chagas Borges; Ronaldo Perez; Aziz Galvão da Silva Jr; Marcos Marinho Teixeira
Chapter 12
Family farming product trading and production cooperative, Bahia State 121
Luiz Bacelar Barata; Joélcio Cosme Carvalho Ervilha; Ronaldo Perez; Aziz Galvão da Silva Jr
Chapter 13
Biodiesel in the mesoregion of Norte de Minas 129
Joélcio Cosme Carvalho Ervilha; Ronaldo Perez; Aziz Galvão da Silva Jr
Chapter 14
Guariba Biodiesel Project 135
Evandro Luiz Dall’Oglio; Paulo Teixeira de Souza Jr
Bibliography 143
FigUREs, tABlEs, gRAPhs ANd BOXEs
Editorial synthesis: Bioenergy Agro-industries to support Rural development
table 1. Biodiesel projections xii
table 2. Evolution of biofuels in Brazil xvi
1. Concepts
Figure 1. technological paths for the production of bioenergy from biomass 1
Figure 2. technological routes for the production of biodiesel 3
Figure 3. technological routes for the production of ethanol 3
table 1. most important biofuels, definitions and sources 2
2. Bioenergy overview
graph 1. World energy supply by source, 1971 to 2010 5
graph 2. World energy supply by source, percentages, 2002 to 2011 6
graph 3. Worldwide production of biodiesel, 1991 to 2012 7
graph 4. Worldwide production of ethanol, 1991 to 2012 7
table 1. Production of biodiesel by country, 2004 to 2012 8
table 2. Production of ethanol by country, 2004 to 2011 8
3. historical overview of Brazilian biofuel policies
Box 1. the development of the National Alcohol Program 11
Figure 1. Outline of the actions of the main actors involved in the PNPB 14
Figure 2. location of biodiesel plants with marketing Authorization and special Registration 19
graph 1. Brazilian production of sugar cane, sugar, and ethanol, 1975 to 2012 11
graph 2. Brazilian production of ethanol, 1980 to 2012 13
graph 3. Brazilian production of biodiesel, 2005 to 2012 15
graph 4. monthly biodiesel production in Brazil, 2005 to 2012 15
graph 5. Biodiesel production in Brazilian regions 16
v
graph 6. Authorized capacity of biodiesel production plants per region, 2008 to 2012 17
graph 7. installed capacity of biodiesel production plants 19
graph 8. Use of raw materials for biodiesel production, percentage, 2012 20
table 1. Contribution of the states and regions to the supply to biodiesel auctions, 2012 17
table 2. Business groups with greater contributions to the production of biodiesel 18
table 3. Biodiesel plants and production capacity by geographic region, 2010 18
table 4. Overview of auctions to sell biodiesel, 2005 to 2013 21
4. Brazilian market of oilseeds, oils and meals for the production of biodiesel
Figure 1. soybean production and average productivity by municipality, 2008 28
Figure 2. installed capacity of the vegetable oil industry by region 34
graph 1. Prices of soybeans in Chicago and in Rondonópolis, 2009 to 2012 29
graph 2. Prices of castor seed in irecê, 2005 to 2011 30
graph 3. Planted area and production of cottonseed in Brazil, 1998 to 2012 31
graph 4. domestic prices of cottonseed and cotton lint, 2002 to 2012 31
graph 5. Prices of sunflower seed, 2008 to 2012 32
graph 6. Prospects for the consumption of vegetable oils 32
graph 7. vegetable oil prices, 2001 to 2013 34
graph 8. Processing capacity 35
graph 9. soybean oil prices, 2008 to 2012 36
graph 10. Cottonseed oil prices, 2008-2012 36
graph 11. Palm oil prices, 2008 to 2012 37
graph 12. sunflower oil prices, 2009 to 2012 37
graph 13. Average price of major meals in the UsA, 2001 to 2013 38
graph 14. National price of meals and cakes, 2012 39
graph 15. Average wholesale price of soybean meal 40
table 1. major oilseed producers worldwide 27
table 2. Production of major oilseeds in Brazil 28
table 3. Production, productivity and cultivated area of soybeans in Brazil 29
table 4. Production and cultivated area of castor seed in Brazil 30
table 5. Production and cultivated area of sunflower in Brazil 32
table 6. World production of major vegetable oils, 2011 to 2012 33
table 7. Oils produced in Brazil 33
table 8. Brazilian market of soybean oil, 2005 to 2013 35
table 9. Balance of demand and supply of soybean meal 38
table 10. Brazilian production of cotton and byproducts 38
table 11. Brazilian production of oilseed meal and cake 39
5. Biodiesel: the creation of public policies for social and economic development
Chart 1. visions on the model to be adopted in Brazil 42
Chart 2. development of the National Alcohol Program 43
Chart 3. Work plan of the management group 45
Figure 1. technological paths for the production of bioenergy from biomass 46
Figure 2. map of biodiesel production poles, 2009 47
graph 1. marketing of biodiesel by companies with or without the social Fuel seal Program 49
graph 2. Family farming in the biodiesel production chain, 2008 to 2012 50
graph 3. Revenue generated by family farming of biodiesel, 2008 to 2012 51
graph 4. Average revenue per farming family, 2008 to 2012 51
graph 5. Raw materials purchased to family farms by biodiesel companies, 2006 to 2009 52
vi
6. the social Fuel seal Program: assuring the participation of small-scale producers
(family farming) 55
table 1. Production from farms up to 100 ha or more than 100 ha 56
table 2. income distribution for family farming and commercial farming 56
table 3. the biodiesel tax model 58
table 4. Brazilian trade balance, 2010 60
Box 1. Example of calculation of purchase percentage 60
Chart 1. Productive arrangement in biodiesel: the integrated system for oil-palm
plantations in Pará 65
7. Agricultural technology: the importance of integrated fuel and food chains 69
Figure 1. Agroforestry systems according to their structural and functional characteristics 72
Figure 2. Crop, livestock and jatropha integrated system 73
Figure 3. interaction of jatropha with cattle in santa vitoria, triangulo mineiro region 74
Figure 4. interaction of jatropha, corn and Brachiaria spp. in Conceição da Barra de minas gerais 74
Figure 5. interaction of jatropha with dairy cattle in santa helena de goiás 75
Figure 6. interaction of jatropha with sheep in Redenção da serra, são Paulo 76
Figure 7. interaction of African oil-palm with pineapple 76
table 1. macronutrients from green fertilizer,organic and mineral sources 73
8. Oilseed intercropping: making biodiesel production feasible 79
Figure 1. Examples of colors, sizes and types of castor seeds 81
Figure 2. Castor seed in interaction with black beans 82
Figure 3. Castor seed in interaction with black beans planted at different times 83
table 1. Amount of oil and efficiency in land use 83
table 2. Average values of individual volume for eucalyptus intercropped
with castor seed in minas gerais 84
9. vegetable oil extraction for the production of biodiesel 85
Box 1. definitions 85
Box 2. Raw material for biodiesel production 98
Figure 1. Oilseed reception and storage for the extraction of vegetable oils 86
Figure 2. Pre-extraction operations for oilseeds 87
Figure 3. vegetable oil extraction by batch pressing 89
Figure 4. Continuous press, cooking vessels, auger and cylinder 90
Figure 5. solvent extraction of vegetable oils 91
Figure 6. Oil degumming with water 93
Figure 7. Free fatty acid neutralizing 94
Figure 8. Oil bleaching 95
Figure 9. Castor seed dehuller and firewood cooker 96
Figure 10. small-scale continuous press for oil extraction 97
Figure 11. Filter press assembly and cleaning 98
Figure 12. location of decentralized pressing units 99
Figure 13. model routes to collect vegetable oil 100
table 1. Composition of soybean oil before and after refining 93
table 2. Average phosphatide content of some oils and fats 93
table 3. Recommendations on the type of process for oil extraction 96
table 4. Average fatty acid composition, saponification and iodine indexes of oils and fats 101
vii
10. Use of oil extraction by-products as feed 103
graph 1. Participation in the world demand for protein, 2011 103
table 1. Participation in the total demand of protein sources for commercial feeds, 2012 104
table 2. Ether extract and crude protein in castor seed by-products from different
oil extraction technologies 105
table 3. Chemical composition and dry matter digestibility of cottonseed meal with
different degrees of decortication 105
table 4. Nutritional characteristics and recommendations for using oilseed cake and
meal in animal feeding 105
11. Promoting investment in biodiesel agro-industrial chains:
methods of analysis and BiodieselFAO 111
Figure 1. BiodieselFAO presentation screen 113
Figure 2. decision-tree of agro-industrial projects in BiodieselFAO 114
Figure 3. BiodieselFAO system screen for price, internal rate of return and farmer's profit 114
Figure 4. North-central region of Bahia and the city of morro do Chapéu 115
Figure 5. BiodieselFAO system screen for costs breakdown 117
Figure 6. BiodieselFAO system screen for sensitivity analysis 118
Figure 7. BiodieselFAO system screen for scenarios 119
table 1. general configuration of the castor seed project 116
table 2. Results for agricultural production 116
table 3. Results for agro-industrial production 117
12. Family farming product trading and production cooperative, Bahia state 121
Figure 1. Area where COOPAF was working, 2006 122
Figure 2. Area where COOPAF was working, 2009 125
Figure 3. Area for castor seeds production in Bom Jesus da lapa 125
Figure 4. Warehouse where the processing plant would be installed 126
Figure 5 Plan for the castor seed processing plant 126
graph 1. Price of a 60-kg bag of castor seed, irecê, 2005 to 2007 123
graph 2. Price of a 60-kg bag of castor seed, irecê, 2006 to 2007 123
graph 3. Price of a 60-kg bag of castor seed, irecê, 2006 to 2009 124
13. Biodiesel in the mesoregion of Norte de minas 129
Figure 1. Norte de minas mesoregion 130
Figure 2. PEtROvAsF, municipalities that produce castor seed 131
14. guariba Biodiesel Project 135
Figure 1. location map of Colniza, mato grosso 135
Figure 2. location of the deforestation zone in legal Amazon 136
Figure 3. guariba Biodiesel Project facilities 137
Figure 4. guariba Biodiesel Project sustainability network 138
Figure 5. Raw materials to obtain oil 139
Figure 6. Oil extraction equipment 140
Figure 7. Biodiesel production equipment 141
viii
Preface
The perspectives of fossil fuel shortages in the world market and the growing concern with protecting the
environment have motivated a continued search for renewable energy resources. At the same time, strate-
gies to promote socioeconomic development are being sought that can increase incomes in rural areas and
reduce the rising trends in rural-urban migration.
The utilization of biomass as an energy source poses growing interest to the energy industry, public
policy formulators and the development community at large. Production of biofuels from a range of
alternative agricultural raw materials has already proven to be a workable option not only to substitute
fossil fuels, but also to generate farm and off-farm employment and enhance rural incomes.
The Agricultural Development Economics Division (ESA) of the Food and Agriculture Organization
of the United Nations fosters food and agricultural industries to add value and increase the demand for
farm outputs. This strategy is focused on contributing to poverty reduction and food security in rural
areas. Within its broad and rich spread of technical areas, ESA works on the agro-industrial activities that
transform non-food agricultural materials and create diversification options for small-scale producers.
These activities multiply the opportunities for employment and income generation in developing countries.
These works cover, among others, the area of production of bio-energy from oil crops and other forms of
biomass, including the production of biodiesel.
Therefore, this publication contributes to provide specialized technical information about bio-diesel
production as a strategy to promote agro-industrial development in close connection with family farming.
It focuses on the experiences in Brazil that foster sustainable feedstock production by smallholder farmers
and promote their linkages to bio-diesel value chains. The book was developed with contributions from a
team of specialists, and seeks to address the potential benefits of agro-industrial diversification that can be
generated through small-scale production of biodiesel. Factors considered were concepts, fundamentals,
technical aspects of agricultural and industrial production, and other elements involved in the development
of biodiesel value chains. In view of the recent controversy around the food versus fuel uses of agricultural
land, the book considers the technical and economic advantages and disadvantages of alternative bioenergy
feedstock, and addresses biofuel and food chain integration and development.
FAO is proud to present this publication, which enriches the information available on the important
and also controversial subject matter of bioenergy, renewable energy, biodiesel, agro-industrialization and
small farmers development.
ix
Editorial synthesis:
Bioenergy Agro-Industries
to Support Rural Development
Roberto Cuevas García; Carlos A. da Silva
THE STRATEGIC POSITION OF BIOENERGy IN FAO’S GOAlS
Rural agro-industries, particularly small-scale enterprises, play an essential role for rural development
globally, as generators of employment and sources of economic and social benefits (FAO, 2004; da Silva
et al., 2009). Generated employment may be in-farm but also off-farm in activities such as handling,
transportation, processing, packaging, storing and marketing, and also in those businesses which provide a
variety of support services. Agro-industries can contribute to environmental protection and food security,
and are a feasible alternative to reduce migration to the cities, to support local culture and foster the role
of women. Agro-industries also contribute to enhancing the quality of farm products and increase their
demand, as well as the demand of agricultural inputs (FAO, 2011).
The rural development issue is composed of many interrelated factors, and it has been demonstrated
that there is a symbiosis between small-scale farmers, small-scale processors and innovative policies and
institutions, which causes the definite need to set enabling environments for competitive agro-industries
and for generalized progress (FAO, 2004a; FAO, 2004b; da Silva et al., 2009).
However, agro-industries have not yet realized their full potential as promoters of rural progress in
many developing countries. More specifically, a range of rural agro-industries still strive for solutions to
the full participation and benefits of small-scale farmers (Vorley et al., 2009), and to secure the supply of
energy they need to operate and survive (FAO, 2004b). In fact, many rural agro-industries in the Latin
America and the Caribbean (LAC) region still use fuelwood as an energy source. FAO concluded that
there is a close relationship between quality and competitiveness of the rural agro-industry in the LAC
region and the efficient and sustainable use of energy (FAO, 2004b).
The perspective of price fluctuations of fossil fuels, historically on the rise, and the eventual scarcity
in the global market lead to the urgent search of feasible renewable fuels, which help reduce green-house
gas emissions, respect the environment and promote social and economic growth. This is true for rural
transport, a specific and omnipresent activity in agrifood chains where a limiting factor and usually the
most pressing one is transport costs, directly related to, and dependent on, fuel costs and availability, which
in turn deeply affect value chain efficiency and competitiveness (FAO, 2008a).
The Food and Agriculture Organization of the United Nations (FAO) has been deeply concerned
with the issue of world energy supply and has been involved in the scientific and technical production,
dissemination and discussion of reliable and relevant information on bioenergy topics in many countries.
FAO has also addressed the role of agro-industries in the whole development process of the rural sector in
Latin America and the Caribbean, Africa and Asia, as well and in other regions of the world. This is part
of FAO’s mandate, that is, to lead international efforts in achieving food security through the development
and promotion of sustainable and energy-efficient agro-industries. In this sense, FAO has been providing
specialized support in the areas of policy advice, capacity building and investment promotion (FAO, 2011).
Intensive work in other areas such as rural education, plant protection, forestry, environmental protection
and nutrition complement those actions focused on sustainable and renewable energy. The support in
market information and agro-industrial market studies has been notable (Shepherd, 2000 and 2003), as
well as in training of small agroprocessors (Santacoloma and Cuevas, 2011).
FAO has been fully involved over several decades in promoting the efficient use of biomass, especially
from agriculture, to obtain renewable energy sources. Following are examples of such specialized work.
FAO (1978) studied the utilization of rice husk as an energy source in the developing countries. The
alternatives are many, from just burning in a controlled atmosphere to dry distillation, pyrolysis, gasifica-
tion and other thermochemical and biochemical processes.