The Value of Biofuels in a Post-Covid World

Gonçalo Pereira — posted 02/07/2020

The Covid-19 pandemic will cause us all to think differently about the way we live. When we can enjoy seemingly minor luxuries like eating in a restaurant or walking through a reopened shopping mall a sense of normalcy may return.

The Covid-19 pandemic will cause us all to think differently about the way we live. When we can enjoy seemingly minor luxuries like eating in a restaurant or walking through a reopened shopping mall a sense of normalcy may return.

Until then, we are learning more about the virus and the disease every day. One major finding is that people living in areas with dirty air have a far greater chance of dying of Covid-19.

Work conducted in the United States by Xiau Wu from Harvard University found that an increase of just 1 ?g / m3 of particulate matter of 2.5?m (PM2.5) in the air is associated with an 8 percent increase in COVID-19 mortality.

The reasons, although not yet clearly defined, are probably due to syndromes caused by the action of these particles within our body, especially in the lungs and circulatory system. The greater the exposure to this particulate, the greater the mortality.

A second relationship also emerged. The lower the purchasing power, the greater the exposure to dirty air. Initially, researchers believed blacks and Latinos had a genetic predisposition to the Covid-19 disease, but the reality is they are more prone to live in suboptimal environs. 

The culprit is easy to identify. It is the imperfect combustion of the long molecules of fossil fuels which are difficult to be accessed by oxygen. Instead of burning completely, many of these chains bend and roast and give rise to small coals which end up in our lungs. 

The equation is changed for the better when biofuels are added to the mix, especially sugarcane ethanol. The existence of oxygen in this molecule makes internal combustion much more efficient, with a reduction of more than 90 percent in particulate formation. Covid-19 reminds us that biofuels produced from renewable materials are part of the solution to lower atmospheric ity that promise to do grave damage to our respiratory system. 

We can look to Brazil – the world’s second largest ethanol producer – for innovative ideas in promoting biofuels. The use of pure or higher blends sugarcane ethanol in gasoline in the Brazilian light fleet has dramatically improved air quality in the country, especially in the city of São Paulo. Most recently Brazil launched RenovaBio, a program that remunerates biofuel producers with financial securities to be traded on the stock exchange and whose value will depend on the perception of the importance of the environment. But the Covid-induced economic crisis has set a trap. The need for recovery can make us want to price energy sources again just for their pure energy content and not for their externalities. That would be a big mistake, which we need to avoid under the penalty of cultivating new catastrophes.

We will eventually beat Covid-19, but it would be a travesty to ignore what we have just learned about the dynamic between air quality and this respiratory disease. We can no longer simply price ethanol and gasoline as equals. Although both are combustible, their values ​​are very different, and the time is right to recognize it.

Gonçalo Pereira – Full Professor at UNICAMP

Coordinator of the Genomics and BioEnergy Laboratory

Stepping up on biodiversity – learnings from Brazilian sugarcane

Unica Admin — posted 03/06/2020

Brazilian sugarcane producers play a vital role in preserving biodiversity while providing sustainable food, innovative green packaging and solutions for green transport. Delivering on the Paris Agreement climate goals requires an international effort and consideration of all possible solutions. Biodiversity has a critical role in fighting climate change and the EU’s Biodiversity Strategy is an important step to raise the ambitions on this issue at European level and globally through the envisaged UN Global Biodiversity Framework.

Towards a level playing field

The EU Biodiversity Strategy aims to protect at least 10% of agricultural land to provide space for wild animals, plants, pollinators and natural pest regulators. The commercial sugarcane industry in Brazil has successfully demonstrated that industries can grow and flourish whilst respecting even higher quotas of biodiversity protection. Over 90% of Brazilian sugarcane production takes place in South-Central Brazil, with the remainder grown along the coast of North-eastern Brazil. In these regions, producers are required by the Forest Code to protect between 20% and 35% of native vegetation as well as the areas bordering rivers (riparian areas) and springs and ensure biodiversity corridors.  Only in São Paulo State, the sugarcane sector has protected more than 200 thousand acres of riparian areas and 8230 springs since 2007.

While the surface of protection proposed by the EU Biodiversity Strategy falls short of what is required of Brazilian producers, we welcome the introduction of such measures as a positive step towards a level playing field.

Helping biodiversity thrive

One of the initiatives that is part of the new strategy, is the implementation of biodiversity corridors. They encourage the growth of native flora and fauna, the return of natural pollinators and the preservation of soil health, all critical elements to ensure the long term success of the habitats. The use of biodiversity corridors was implemented in Brazil a near decade ago with sugarcane producers ensuring their existence and maintenance. These corridors help to protect the habitat of many species, including large mammals such as the jaguar, that in turn help keeping rodent populations in check.^[1] 

Sugarcane producers are also increasingly monitoring pollinator populations and are using their permanent preservation areas to enhance habitats for bee populations to thrive. Knowledge sharing with local beekeepers is integral to this initiative, leading to capacity building on both sides.    Moreover, an increasing number of members are successfully applying biological control and thereby minimizing the use of pesticides.

Finally, Brazilian sugarcane producers have developed innovative organic fertilizers as a by-product of sugarcane processing. This is in line with our commitments to promote biodiversity, improve soil health and reduce reliance on chemical fertilizers.

Sustainable decarbonization

Increasing and protecting biodiversity supports carbon capture. However, without decarbonizing the energy system in parallel, its benefits are limited. Brazil’s diverse energy mix allows the country to meet 45% of its energy demand with renewable sources. This makes Brazil energy sector one of the least carbon-intensive in the world.^[2]

The EU has already set sustainability criteria for biofuels and through its own research^[3] concluded that Brazilian sugarcane ethanol meets all the environmental criteria as a carbon-efficient solution for decarbonized transport, and that production increases to meet the predicted demand would not displace or impact other crops in the region.

A tried and tested formula

Brazilian sugarcane ethanol is not only helping to achieve the ambitions set out in the European Green Deal and reinforced in both the Farm to Fork and Biodiversity strategies.  Brazilian sugarcane cultivation sets an example of how these targets can be achieved while providing sustainable bio-based alternatives to fuel and plastics that help decarbonizing the economy. The Brazilian experience provides opportunities and learnings that can help Europe reaching its own sustainability ambitions.

^[1] Ecological Society of America, Assessing the umbrella value of a range‐wide conservation network for jaguars, 2015

^[2] IEA, Country profile Brazil

^[3] Assessing the impacts of the EU bioeconomy on third countries: Potential environmental impacts in Brazil of EU biofuel demand to 2030, JRC science for policy report, 2019

Putting Ethanol to good use in fighting COVID-19

Unica Admin — posted 14/04/2020

The devastating impact of Coronavirus looks set to reach Brazil and other countries in the region with numbers of local cases rising. We have seen how across the world, as individuals and healthcare services seek to limit the risk of the infection spreading, essential products such as face masks and hand sanitizers have become scarce as demand has increased. Industries and companies that never manufactured medical supplies before are responding with goodwill and materials, putting their resources to the service of the global pandemic response.

The Brazilian Sugarcane Industry Association (UNICA) realized that it could make a contribution to fighting the virus by putting sugarcane ethanol to good use. Through its members UNICA is donating one million liters of alcohol 70%, that can be used for disinfection or for alcohol gel production, free of charge. This additional supply will support efforts by public health units to contain the coronavirus pandemic, ensuring that hospitals can be kept clean and that medical professionals and other frontline workers can better protect themselves, as well as patients and their families.

The challenge: coordinating the initiative

Making a raw material available for another use in a very short amount of time is a challenging operation, perhaps surprisingly so. While ethanol is very versatile and can be used in many products such as bioplastics, food, beverages and most notably for pharmaceutical and medicinal products, quickly shifting the focus of UNICA members’ production as well as fulfilling very specific legal, logistical and other requirements required a coordinated approach.

Describing the effort, Evandro Gussi, president of UNICA, said, “We live in a moment that demands unity and we have created a real war room operation to overcome the challenges imposed by COVID-19 and contribute to assist several States across Brazil. To date, over 650,000 liters have been donated and distributed by UNICA members to seven states across Brazil, and our efforts continue as the country comes together in the face of this unprecedented crisis. ” 

A number of different stakeholders from public and private organizations came together in order to build an operation that could guarantee safe delivery of the final product to public health units around Brazil. First, they needed to ensure that their actions were compliant with federal and state regulations. To that end, UNICA cooperated closely with the competent authorities, in particular the National Sanitary Surveillance Agency (ANVISA) to create a temporary legal frameworkwhich would allowthe production, logistics and distribution of industrial ethanol for hygienic use in response to the Coronavirus crisis.

Working together to deliver

Besides producing alcohol 70% for donation, the mills are among the providers of essential products for the population determined by the Government – sugar, ethanol fuel and bioelectricity – and had to keep operations running during the pandemic.  

It was fundamentally important to ensure that the sugarcane mills involved were prepared to manage not only the new production, but also able to protect the safety of their employees. Working with an expert in infectious diseases, all of the mills involved were able to implement new protocols to protect their staff. The infectologist’s recommendations covered both how to avoid contamination at work alongside guidance on how to stay safe at home. New measures have addressed communal dining areas, transportation, personal protective equipment, homeworking and more.

The logistics soon followed. Ethanol alcohol, as a hand sanitizer or in 70% concentration is a sensitive product. Working closely with the competent authorities ensured UNICA members had access to the expertise needed to handle and transport these products safely. Welcome support was provided by members of the Brazilian Association for the Transport and Logistics of Hazardous Products (ABTLP) who offered to play a critical role in providing the appropriate vehicles to transport the cargo, all in partnership with the National Union of Fuel and Lubricant Distribution Companies (Sindicom), who donated the diesel that fueled these heavy-duty trucks to hospitals across Brazil. Coca-Cola FEMSA Brasil also helped with the logistics and IHARA, UNIPAC and Braskem donated various containers to transport the alcohol.

UNICA also needed internal structures to manage such multi-faceted operations. This included liaising closely with both the demand and supply sides, arranging the logistics, monitoring the results and ensuring the safety of everybody involved, strictly following the hygiene and safety measures set out by the Ministry of Health and Anvisa.

Supporting those that need it most

Last but not least, our main concern was that our support reached beyond our pre-established networks. By creating new communications channels with the relevant public authorities, we were able to direct the ethanol to the organizations and locations that were most in need. Thanks to these incredible joint efforts, 650,000 liters of ethanol – the majority produced in Sao Paolo – have been donated and distributed to seven different states across the country so far as well as to local communities and municipalities around the mills themselves.  Sugarcane ethanol is a widely used product, but often best known as an alcohol-based fuel, not as a primary material for hygienic use. Produced by the fermentation of sugarcane juice and molasses it can equally act as both a sweetener in food and beverages (as sugar) or as a substitute for petroleum in the production of bioplastics. Pioneering research is currently being led from Brazil to develop renewable fuels from sugarcane that could entirely replace traditional gasoline, diesel and jet fuel.

Thanks to the versatility of sugarcane ethanol and hard work of everyone involved, UNICA hopes that initiatives like these can help slow down the spread of the virus and protect the lives of frontline workers. As sugarcane manufacturers, UNICA’s members are proud of the contribution they can make and are honored to have been able to play their part in supporting the global response to the Coronavirus pandemic.

A Greener Deal with Ethanol

Emily Rees — posted 18/12/2019

Ursula von der Leyen has left no doubt; the European Green Deal is to become the legacy of the 2019 – 2024 European Commission. The ambition is clear and decisive: to decarbonise Europe. New targets see at least 50% of emissions cut by 2030 and carbon neutrality achieved by 2050.

The climate crisis requires urgent action and achieving decarbonisation will require immediate changes. We cannot afford to leave ethanol, which holds the expeditious potential to reduce greenhouse gas emissions and diversify energy supplies, out of the mix. Ethanol can produce 90% less lifecycle emissions than conventional fossil fuels and stands to play a critical role in reaching Europe’s targets.   

This will be a real test for the new Commission and ambitions might be frustrated should the Green Deal not include the full spectrum of all available technologies, including sugarcane ethanol. The European Green Deal will redefine the landscape in which all policies are developed, not least those focusing on health, energy, transport, environment and agriculture. This is set to be a Just Transition, one that transforms and benefits all aspects of European society. 

Health: The Green Deal explicitly links citizens’ health with environmental health. Improving air quality is an easy example of ethanol’s versatility. How? Blending petrol with higher levels of ethanol such as E20 adds oxygen to the gasoline and reduces particulate matter from the tailpipe exhaust, providing cleaner air and better quality of life for Europeans.

Energy: The implementation of the Clean Energy Package is a short-term priority for the European Commission and Member States. Kadri Simson, the new Energy Commissioner ,will be tasked to evaluate existing legislation and decide whether it is up to the standard required to meet more ambitious climate targets. A possible review of the renewable directive and renewable targets in the transport sector could again see ethanol play a more prominent role; rolling out an E10 baseline across the EU would already reduce road transport emissions by up to 15 million tonnes, in full compatibility with most existing vehicles on the road today.

Transport: One of the priorities of the Green Deal is the decarbonisation of the transport sector. It is mentioned as a specific initiative and priority. As the Emissions Trading System will be extended to the maritime and aviation sectors and the European Commission might again revise the CO2 emissions performance legislation for cars, Europe will need to increase the uptake of sustainable and alternative transport fuels. Flex fuel vehicles, already 74% of the entire light vehicle fleet in Brazil, can run on either gasoline or pure ethanol, further reducing emissions. With the introduction of new Hybrid Fuel Flex options, which also include an electrical powertrain, the potential to cut emissions is only increasing. 

Environment: The Commissioner for Environment, Virginijus Sinkevicius will lead on the zero-pollution ambition which will require a cross-sectoral approach. Where ethanol replaces fossil fuels it leads to a significant reduction of NOx and particle emissions. In addition, ethanol is also widely used as a solvent and is increasingly being used as a renewable alternative to fossil-based chemicals in products stimulating the uptake of bioplastics.

Agriculture: Agriculture Commissioner, Janusz Wojciechowski will contribute to the zero-pollution ambition and ensure that agriculture and food production contribute to our climate, environmental and biodiversity goals. In Brazil, ethanol production occupies only 1.4% of arable land and largely contributes to the reforestation goals set out by the Paris Agreement. As of January 2020, Brazil’s RenovaBio programme will further incentivise low-carbon ethanol production and use through tradeable carbon credits whilst guaranteeing a deforestation-free supply chain. These are examples of how agricultural policy can play its role in meeting decarbonisation targets. 

Europe’s Green Deal is not just about ambitions, it is also aspirational. Europe wants to be a leader in climate action and to do so it will need to use all the solutions available to accelerate this transition. Biofuels are already playing a critical role in many countries, and as Member States roll-out higher blends of renewables in standard petrol, ethanol is demonstrating its potential at the heart of Europe. 

UNICA congratulates the new European Commission and wishes the Colleges best of success in collectively reaching the EU’s ambitious climate goals in the years ahead. 

Brazilian Sugarcane Ethanol Can Help America Achieve Its Climate Goals

Géraldine Kutas — posted 31/08/2019

The Renewable Fuel Standard (RFS) is a vital component of the Environmental Protection Agency’s (EPA) policy to enhance America’s energy security and reduce the impact of transportation emissions on the environment. As global leaders in search for clean, renewable options, the Brazilian Sugarcane Industry Association (UNICA) has been a strong supporter and contributor of the RFS program since its inception. The industry is committed to continuing to help the RFS achieve its carbon saving goals.

Brazilian sugarcane ethanol is one of the most climate-friendly biofuels available in the market today. In fact, in 2010, the EPA determined that Brazilian sugarcane ethanol achieved an average reduction in lifecycle green-house-gas (GHG) emission of 61% compared to a gasoline baseline, making it an advanced biofuel.

The EPA has published proposed renewable fuel standards for 2020 and biomass-based diesel volume for 2021. We continue to support the implementation of the RFS program, but there are certain elements of the proposal that we believe the EPA should review. As our comments to EPA show, Brazilian sugarcane producers’ top tier recommendations are a increase in projection for imports for Brazilian sugarcane ethanol imports that are closer to the volumes expected from Brazil in 2019, and the implementation of an incentive multiplier program to help reduce the shortage of advanced biofuel.

Sugarcane Ethanol Available in 2020 Will Be Much Greater Than Current Projections

We believe EPA has underestimated the amount of Brazilian sugarcane ethanol actually imported in 2018. Reports suggest that in 2018, Brazil’s ethanol production reached more than 8 billion gallons, a 9% increase compared to 2017 production levels. Historically, we know that when the market conditions are right, Brazil can supply the Unites States with large volumes of advanced biofuel, and this is the case today.

The Agency suggests that only 60 million gallons of imported sugarcane ethanol will be reasonably available on the U.S. market in 2020. We believe EPA needs to increase this projection, as it is based on incomplete numbers from the U.S. Energy Information Administration (EIA). EPA’s own data monitoring system (EMTS) shows that, in 2018, over 76 million gallons of Brazilian sugarcane ethanol generated D5 RINs and current data already shows that more than 67 million D5 have been generated from imported sugarcane ethanol so far in 2019. The U.S. Census Bureau also shows the same 76 million gallons of Brazilian sugarcane imported in 2018. The pace of imports in 2019, coupled with market intelligent and projections, suggest that Brazil will export to the U.S. close to 135 million gallons that will generate D5 RINs in 2019. Thus, the RFS’ projections should reflect these considerations and use this number a a basis for sugarcane ethanol imports from Brazil in 2020.

Global Industry Trends Are Reshaping the Market for Sugarcane Ethanol

EPA could strengthen the proposal by taking into account important global trends that are likely to increase quantities of Brazilian sugarcane ethanol available for import in 2020. First, recent changes in Japan’s biofuel policy that allow for the use of corn-based ethanol will result in a greater amount of sugarcane ethanol available for shipment to other markets, including the United States. By 2020, said impact will be obvious, and the U.S. will be seeing availability of higher volumes of sugarcane ethanol than in recent years.

The second global factor to consider is the low price of sugar. As a result of lower market prices, Brazilian producers have expanded ethanol production. When prices are low mills tend to distill more sugarcane into ethanol. UNICA is not expecting any change in the market that would substantially hinder Brazil’s ethanol export capacity in 2020, therefore EPA should count on this trend to increase its projection of sugarcane ethanol imports for that year.

Lastly, we encourage the EPA to recognize that the competitiveness of sugarcane ethanol could increase in the short-term as there is a possibility that the U.S. biodiesel tax credit might not be extended, as it has been the case for the past three years.

Given these trends we believe EPA should considerably increase its imports projections for sugarcane ethanol from Brazil. Brazil has shown that when market conditions are right—as they are now—the industry can deliver significant amounts of clean, climate-friendly ethanol to U.S. consumers.

Incentive for Continuous Improvement

Brazilian sugarcane ethanol producers encourage the constant advancement of sustainable practices throughout the industry. In order to empower continuous improvement in GHG performance, the EPA could adopt a new incentive multiplier program for the most climate-friendly biofuels. Specifically, we recommend an approach that would help reduce the advanced biofuel shortage by allowing producers to generate an additional amount for every 10% reduction in their lifecycle GHG emissions below 50%.

As the global market for ethanol increases, Brazil will continue to be a strong ally in America’s quest to meet its clean energy goals. Brazilian sugarcane producers are willing and proud to contribute to the increased use of advanced biofuels in the EPA’s RFS program. We hope the Agency keeps on the path to fostering the production and use of as much advanced biofuels as the market can deliver.