1. BIOVALE ENERGIA:
YOUR PARTNER IN BRAZIL
AND RET PROSPECTS
www.biovale.teiaslive.net

2. The strategy of BioVale is to
cluster the various stakeholders of
the biodiesel sector, organizing
and aligning them in
entrepreneurial design.
The great opportunity is to cluster
the best capabilities and
resources to the benefit of the
partners and shareholders of spin-
off companies.
Therefore, the innovation and
intellectual capital is BioVale´s
main asset, holding skills in Brazil
and abroad to make out turn-key
biodiesel projects.
cluster of skills
INNOVATION
PERFORMANCE
BUSINESS
CLIMATE
COLABORATION
SPECIALIZATION
ECONOMIC
COMPOSITION
PRODUCTIVITY
STRATEGY
BIODIESEL
CLUSTER

3. The main objective of the Hub is to bring capabilities of the various
stakeholders involved in the bio-diesel production chain, both in Brazil and
abroad providing resources and diffusing knowledge to the linked firms.
The benefits provided through such linkages are of great significance because
of the complimentary capabilities among the stakeholders.
Linkages with foreign organizations can be a great driver of dynamism and
competitiveness to develop effectively and rapidly the Brazilian bio-diesel
program. The foreign firms benefit from linkages are reduced costs, local
market and product intelligence and enhanced assets (UNCTAD 2001).
MINASINVEST´s interventions, as a leading IPA (Investment promotion agency)
are important to the extent that investors believe that an enterprising IPA can
assist them in identifying and introducing reliable local firms and
organizations with whom the investors can partner.
The linkage envisages upgrading domestic enterprises; facilitating the
transfer of technology, knowledge and skills; improving business and
management practices; and facilitating access to finance and markets.
linking the stakeholders

4. Biodiesel - a Mutual Profitable Partnership
As oil prices and environmental concerns have risen in the past few
years, investment in new biofuel facilities has mushroomed in Brazil.
The Brazilian National Program for use and production was
incorporated in the Brazilian energy matrix by Law nr 11.097/2005 .
Large trans-national corporations, as ADM, have already started
investing in biodiesel projects in Brazil
The crop area required to produce the blend of initial mandatory
2% of biodiesel will be 1.5 million hectares, equivalent to only 1% of
the total acreage under crops or available for agriculture throughout
Brazil (150 million hectares).
BIOVALE ENERGY: YOUR PARTNER IN BRAZIL – FROM INCEPTION TO CONCEPTION

5. Bearing high agricultural
production costs
Bearing internal/external
obligations of emission reduction
(Kyoto Protocol and other
compromises)
Bearing scarcity of cultivation
lands
Willing strategic alternatives
for vegetable oil and diesel supply
Possible partners
Countries :
Having to meet social and
environment responsibilities
Bearing environment liabilities
Willing to attract SRI
and valuing their stock prices
Bearing intensive need of fuel
sources
Investors in prospective high
return SRI
Companies :
BIOFUELS: FUTURE´S MOST PROSPECTIVE INVESTMENT

6. cooperation/partnership
Possible areas of interest:
Utilization of Partners technology for biodiesel plants in
building, logistics, utilization of glycerin and other by-
products, specification, engine tests, etc.
Sale of carbon credits (MDL) obtained through the
utilization of biodiesel in Brazil.
Export of vegetal oil and biodiesel to Partner´s country.
Exploitation of the potential domestic market

7. General coordination among the various stakeholders
Resources (financial and management)
Industrialization: oil extraction and transesterification
Logistics (sales, distribution, export process, shipping)
GENERAL CORPORATE ACTIVITIES
BioVale contributions
turn-key/Global solution in Biodiesel projects
Research & Development
Institutional and Government support
Project development, Project Financing an Funding
International product commercialization
Logistics (sales, distribution, export process, shipping)
GENERAL CONSULTING ACTIVITIES

8. Implementation goals
Internal
capabilities
External
capabilities
Professional
POOL
Roles of
stakeholders
strategies
Action planResources
management
monitoring
professional management
BioVale Energy: your partner in Brazil.

9. the price of
crude oil tripled
between early
2002 and mid-
2005 while
natural gas
reaches a level
six times greater
than ten years
earlier.
Market scenario and prospects
Source: GTZ/WorldWatch Institute

10. energy companies have not invested in building
enough refinery capacity to meet the growing level of
world demand. World oil production has gone up by 40%
in the past 20 years while refinery capacity has only
gone up 15%.
the oil reserves discovered between 1950 and 1980 are being run down.
companies have
not been able to
find enough new
oil and gas fields
to replace the
exhausting ones.
Oil is being
pumped out of
the ground three
times faster than
it is being
replaced by new
oil finds.
The growing gap
Source: GTZ/WorldWatch Institute

11. "There are not enough large-scale projects in the development
pipeline right now to offset declining production in mature oil fields
and to meet global demand growth beyond 2007". (Chris Skrebowski,
the editor of the Petroleum Review )
The total amount of
energy that the world
gets from oil and gas
will begin to decline
after 2010.
Will oil prices rise further?
Source: GTZ/WorldWatch Institute

12. The global demand for oil is increasing by just over 2%
every year at present.
This increase in demand added to the gap being created
by the declining supply, implies new energy sources each
year equivalent to 4-5 per cent of the world's current oil
production:
around 1,800 million barrels of oil a year.
In 2015, when world gas output ceases to increase to
meet the its growing demand , the new energy sources
would have to increase the annual rate at which they grew
by another 900 million barrels.
What alternative sources to fill the gap?
Source: GTZ/WorldWatch Institute

13. The only truly sustainable energy sources are those based
on the flow of energy from the sun: solar, hydro, wind,
wave, biomass.
These flows are very large in comparison with humankind's
use of energy.
Renewable sources can therefore meet all the world's
energy needs, both now and in the future.
The amount of energy supplied by renewable sources
could be 120 times its present level .
What alternative sources to fill the gap?
The problem is to develop these sources
quickly enough to fill the gap as it opens up.
Source: GTZ/WorldWatch Institute

14. The world is on the verge of
unprecedented growth in the
production and use of biofuels , by
virtue of:
Rising oil prices, national security
concerns, the desire to increase farm
incomes, and a host of new and
improved technologies .
The two most prevalent biofuels are
ethanol and biodiesel.
World production of ethanol more
than doubled between 2000 and 2005,
while production of biodiesel
quadrupled.
Biofuels: a Booming Industry

15. Renewable energy will have to supply a greater share of the world's
energy requirements.
It is estimated that the market for clean energy technologies could
be worth $1.9 trillion by 2020. The financial sector has a key role to
play in developing and promoting this market.
In the next 25 years, the world will consume all that has been
produced in fossil oils so far.
The world´s dramatic increment for fuels should be supplied by bio-
fuels.
In the future, In the short run, ETHANOL and BIO-DIESEL are the
main bio-fuels.
Renewable energy is both a solution and a business
opportunity; BUSINESS AS AN AGENT OF WORLD BENEFIT
RET OPPORTUNITIES

16. Brazilian ethanol´s use and production
PRODUCTION CAPACITY: 18 billion liters/year
PRODUCTION: 15 billion liters/year (seed/2004/2005)
EXPORTATION: 2.4 billion liters in 2004
SUGAR CANE PLANTED AREA: 5.6 million hectares
POTENTIAL FOR AGRICULTURAL EXPANSION IN BRAZIL:
90 million hectares of arable lands – Without any forest removal
INTEGRATED PRODUCTION OF SUGAR AND ETHANOL:
Provide production flexibility
UTILIZATION OF ETHANOL IN VEHICLES IN BRAZIL:
Automobiles, light commercials, motor-cycles and aircrafts
Flexible Fuel light vehicles: reached 37% of internal market sales in 2005

17. Source: MME
Law 11 097/2005: it sets forth a mandatory use of biodiesel
mixture to diesel, which reflects in the following prospects
20%
20202020
12,4
billions
liters/year
12,4
billions
liters/year
Brazilian domestic market projection

18. Brazil’s export potential
With the launch of commercial production, Brazil
becomes a potential exporter of biodiesel.
The EU aims to ensure that 2% of all the fuel consumed
in the region is renewable by 2005, but it has limited
acreage available for growing rapeseed, the main
feedstock produced in Europe, and industrial capacity is
insufficient to meet the stipulated demand.
Despite these constraints, the proportion of renewable
fuels is set to reach 5.75% by 2010 according to EU
Directive 30, ratified by the European Parliament in May
2003.
Given the limitations for production growth in Europe,
Brazilian biodiesel enjoys an unprecedented opportunity
to build market share in the continent Europe.

19. Market
sight
Structure &
skills
Strategic
alliances
FUNDING
EFFICIENT MANAGEMENT
Applied
methodologies
Technological
innovation
planning
Competitiveness and sustainability
Making the project workable