A perspective on competitiveness of Brazil in the global supply of biomass
2012
Javier Cárcel Carrasco | Cassiano Augusto Agapito | Carlos Alberto Mariotoni
In this paper we intend to present an integrated view of biomass production in Brazil. By analyzing biomass potential and biomass production costs we seek to present a broad view of Brazilian competitiveness in the domestic and global energy markets. By mapping out this potential, we want to present the main opportunities for Brazil in its quest for cleaner, more competitive and more sustainable fuel sources. Our estimate of the potential represents almost double the volume that the country produced in 2010. This should enable Brazil to meet 30% of global demand for biomass by 2035. As regards production costs and profits, dedicated biomass has trading conditions to yield the same or more than the most profitable products in the sector such as sugarcane, soybeans or wood. Compared with fossil fuels, the cost of biomass is equivalent to an oil barrel below R$ 40.00, although adequate logistics is crucial for the economic feasibility of biomass utilization. Global demand for biomass will increase in the coming years, both for conventional and modern uses, such as second generation biofuels or biomass gasification. Due to its agricultural potential, Brazil could become a major biomass producer, with great economic and environmental advantages in a world increasingly concerned with sustainability and climate change.
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