Altenergy: How is the industry being prepared to face the American farmers, NGOs and the oil lobby? May we say the sugar cane industry is articulated?
M.B. I No. As I said, the industry is not yet fully articulated, but we are moving quickly on this issue, with UNICA beginning to fulfill its true role. It has opened offices in the USA and Europe and estimates to open a new office in Asia. And hopefully one in Brasília.
Just one entity engaged with competent professionals is not enough to reach this point. We need a pool of producers allowing and stimulating the articulation as our challenge is to elucidate the Brazilian and international public opinion, everything in due time.
I believe that the lobbies, from any source, are natural and should not be cause of concern. With time and responsible articulation, we will introduce our ethanol in gas stations around the world, everything will happen in due time.
Altenergy: Higher prices of oil and gas are making coal more competitive as fuel for the power generation. How is the sector dealing with this?
M.B. I In a natural way, our industry respects other fuel sources. Technological advances have been already developed to the point of making the coal less polluting. The world is in high need of several energy sources, we could waste none, and if an energy source causes negative effects, then technology must minimize its impact, whatever it is. Just like the coal industry is doing.
Altenergy: Once you said that the best place in the world to invest in ethanol was the United States, due to the subsidies, the easy credit and the commitment to production. Do you still think so? What do we need to change in Brazil in order to attract more investments?
M.B. I I still think so because, despite the American current production, ethanol producers have guaranteed profits. Brazil needs to use the American model. There, before installing the plant, the producer has already anticipated the sale of his product. Well ahead in time he knows the price of his product, when the plant begins to operate. Here, 5 years is the average term, without mentioning the Brazilian producer starts his plant with no guarantee of his production destination.
Altenergy: The American government is investing high on the hydrolysis to use the corncob, straw and grasses cellulose to produce ethanol. What about the high standard researches in Brazil, do they have competitive conditions?
M.B. I The United States has planned to produce 15 billion gallons of ethanol from corn, above that the production it will be made through the hydrolysis of biomass, and therefore it is essential they have this technology completely dominated. In our case, this technology will represent an extraordinary prospect of profit as we will use part of the bagasse in ethanol, and the other part will be strategically used for power generation.
In terms of research, although modest, we invest about 1/20 of the amounts the United States are investing, and we are developing processes which will take us closer to master this technology. As an example I mention the CTC, which has just signed a contract for technology transfer and Dedini, which also has invested and already has a pilot plant operating for more than 10 years now, coincidentally with the daily production of 10 thousand liters.
Suppose you are Petrobras CEO, which steps would you take to consolidate the company’s position in the biofuels industry?
M.B. I As Petrobras CEO, I would participate by investing heavily in logistics and leave the production to producers. As a producer, I think they should come into the production (laughs). Indeed, there must be a partnership, in which Petrobras contributes with the construction of pipelines and producers supply the ethanol. Petrobras has no profile for the production of ethanol as this is not its core-business. It is one of the largest oil companies in the world and, with the discovery of Tupy oil field, they should consolidate that position accordingly.
Now, as you have “promoted” me to Petrobras’ President, what I would certainly do if I had that position, I would launch a “green” gasoline. It is the only oil company in the world capable of providing a mix of gasoline with ethanol in the mixture desired by the customer, in the proportion desired. It would be a unique product and very well accepted internationally, in addition to strengthening the position of Brazil as a leader in this segment.
Altenergy: How do you see the Brazilian energy matrix in the next 10 years? Do you think the recent discovery of oil in the Santos Basin affects the strategic vision of the government with regard to biofuels?
M.B I This discovery is very important, but should not affect the biofuels program. In 10 years, we will depend only on our progress in this area, and if we cannot develop it convincingly, we will have only one oil-byproduct to replace or added which is gasoline, although the ethanol can also be mixed to the diesel.
I see Brazil, in 10 years, as a large producer of ethanol and biodiesel, but for now, the Biodiesel program is still linked with government actions, more specifically to Petrobras. To provide a well-structured and balanced energy matrix, biodiesel has to acquire strategic status. In theory, it is correct and Petrobras should be the most concerned party, it is already the biggest player in the game of biodiesel and we need to know which one will prevail - the country’s best interest, and then I can fell relieved, or the oil company’s best interest....
The question stands...
Altenergy: How is the sugar cane industry dealing with the socio-environmental issues? Is there any truth in the image, often circulated abroad, that Brazil is unbeatable in this sector due to unfair way it deals with such issues?
M.B. I This feeling is absolutely false and is part of a plan of demoralizing the Brazilian biofuels. The industry is addressing the socio-environmental issues with great responsibility and the numbers show that we have advanced greatly and we will improve more. In about 4 or 5 years we will have eliminated the sugar cane burning in the state of São Paulo and reduced significantly in the other states, and such fact is an excellent example of our concerns towards the environment. The social issue comes together with environmental and by eliminating burning we will reduce greatly the manual harvest, thus minimizing the problem.
It is important that the renewable energy industry stands up before Brazil and the world, clarifying these issues once and for all. We must stop accepting these false versions with resignation and participate actively in the discussion, opening the doors of our plants, with figures and facts, demonstrating the reality of our industry. Today, in Brazil, we know that is not enough to be leader, we have to consolidate this leadership with truth, ethics and respect for human beings and the planet where we live in.
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