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11th Annual World Congress on Industrial BiotechnologyPhiladelphia, PA ‐May 12‐15, 2014 

Evolution and Trends in Public Policies for Industrial Biotechnology in Brazil Carlos E. Cavalcanti ‐ Head of Biofuels, BNDES

LIVRO VERDE DO ETANOLLIVRO VERDE DO ETANOLBNDES in brief

The Brazilian Development Bank (BNDES) is the main long‐term financing provider in the 

Brazilian economy

BNDES disbursement (2013): USD 88.1B

BNDES and Biofuels industry targets:

‐ to finance industry capacity expansion and modernization 

‐ to finance cane renewal and expansion (Prorenova) and ethanol seasonal storage (PASS)

‐ to foster R&D and innovation projects

‐ to finance logistic systems targeted to optimize ethanol transportation costs

LIVRO VERDE DO ETANOLLIVRO VERDE DO ETANOLBNDES and the Biofuels industry

Brazil today: 400 sugarcane mills  =>  700m ton capacity

From 2004 to 2013, BNDES financed  100+ new projects (expansion and greenfields) 

which represent:

• Contracts: > USD 20bn

• 150 m ton of new crushing capacity (close to 50% whole expansion of sugar & 

ethanol industry since 2004)

Portfolio: 130+ economic groups

Financial agents: 90 acreddited institutions

Instruments: corporate finance or project finance schemes, equity participation 

(direct/indirect) and grants 

LIVRO VERDE DO ETANOLLIVRO VERDE DO ETANOLBNDES Disbursement to Biofuels Industry

Bank disbursement to biofuels industry over the last decade 

achieved  > USD 23B

Source: BNDES  

USD billion

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

0.20.5

0.9

1.9

3.53.2

4.23.5

2.1

3.2

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Industrial 1st Gen15%

Agricultural36%

Byproducts utilization

16%

Industrial 2nd Gen14%

New Products19%

BNDES/Finep portfolio for the sugarcane industry (2010)

In 2010, the BNDES/Finep

aggregate budget reached 

USD200M and only USD50M

focused on 2nd generation projects.

Source: BNDES

The Advanced Biofuels Race (Brazil)

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PAISS: Joint plan (BNDES + FINEP) to finance innovation in the sugarcane‐based

biofuels and chemical sectors

Target: To foster, select and finance initiatives (business plans) that should be focused

on developing, producing and commercializing new industrial technologies to process

the sugarcane biomass

Governance & Budget: Permanent coordination of the efforts between the BNDES and

FINEP, focusing on specific research lines: BRL 1B (~ USD 500M)

Focus Points: i) Cellulosic ethanol; ii) Biochemicals and bio‐based materials; and

iii) Gasification

The PAISS Experience

LIVRO VERDE DO ETANOLLIVRO VERDE DO ETANOLPAISS Milestones

1st stage:• 57 registered companies• Investment: USD 5 B 

2nd stage:• 39 pre‐selected companies• Investment: USD 3 B

Final round:• 25 selected companies• Investment: USD 1.7 B

10

7

8

Selected companies 

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Theme Lines Projects Amount(USD B)

Line I: Cellulosic Ethanol 18 0.8

Line II: Biochemicals 24 0.8

Line III: Gasification 1 0.1 

Total 43 1.7

(USD)

49%

16%

8%

27%

Contratado Aprovado Análise Perspectiva

PAISS Main Results

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Company Country Funding Product Amount (USD M)

CTC Brazil Finep Enzymes,sugarcane straw collection and C5 yeasts. 133

CTC Brazil BNDES¹ Cellulosic ethanol demo plant and sugarcane varieties 173

Odebrecht Agro* Brazil Finep Cellulosic ethanol 4

VTT* Finland Finep Enzymes development 5

Metso* Finland BNDES Pre‐treatment system 10

DowDow/DSM*

USAUSA, Netherlands

FinepBNDES

Propanol and propionic acidCellulosic ethanol

210

Braskem Brazil FinepButadiene, isoprene, PEF and green propene

10

Braskem Brazil Finep 93

Methanum Brazil Finep Biogas 2

GranBioBrazil BNDES

Cellulosic ethanol150

" Finep 63

GranBio* Brazil BNDES ¹ Cellulosic ethanol and bio‐based chemicals 300

DSM*Netherlands BNDES

Succinic acid3

Finep 136

PHB Brazil BNDES Biodegradable plastics 5

Solazyme/Bunge* USA BNDES Renewable oils 123

Petrobras Brazil Finep Gasification: syngas + cellulosic ethanol 128

Eli Lilly USA Finep Enzymes development 5

Barauna Brazil Finep Fertilizers 1

¹ includes equity participation* Partnerships Total 1,356

PAISS Approvals (March’14)

LIVRO VERDE DO ETANOLLIVRO VERDE DO ETANOLPAISS Main Results (2nd Gen Ethanol)

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Approximately USD3.5B invested in a 1,333 km pipeline (green line) 

dedicated only for ethanol transportation.

New Infrastructure Facilities

LIVRO VERDE DO ETANOLLIVRO VERDE DO ETANOLThe next move: PAISS Agricola

1. New varieties ofsugarcane (focuson transgenicimprovements)

3. Integrated systems for managing, planning andcontrollingproduction

5. Adapting industrial systems to

complementary crops(Ex: corn/sorghum)

4. New Techniquesfor distributing

saplings

2. Machinery & equipment for 

planting

Initial Budget: USD 700M

LIVRO VERDE DO ETANOLLIVRO VERDE DO ETANOLConclusions

For more information, visit www.bndes.gov.br

In view of the increasing domestic demand and consolidation of ethanol as a sustainable

and alternative energy, intensive investment in new processes/products through

technology is paramount to guaranteeing Brazil leadership in the biofuel industry.

The positive experience of PAISS can be testified by the number of commercial plants

scaling up novel products with proven technologies.

Priority is to accelerate R&D investments in agricultural technologies, including genetic

improvement of sugarcane varieties and new machinery/equipments dedicated to

sugarcane planting & harvesting.