Ethanol: Invest in Perú
http://www.proinversion.gob.pe/
PERU OFFERS: STABLE AND OPEN ECONOMY WORKING FOR THE GLOBALIZATION PROCESS ACCESS TO REGIONAL COMMERCIAL BLOCKS STABLE AND FAVORABLE INVESTMENT CLIMATE INVESTMENT POLICIES BASED ON INTERNATIONAL PRINCIPLES LOCAL BUSINESSMEN WILLING TO SHARE THEIR KNOWLEDGE ABOUT THE PERUVIAN MARKET
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ETHANOL: INVEST IN PERU THE HIGHEST YIELD OF SUGAR CANE PER HECTARE IN THE WORLD IN 2003 A GLOBAL ENERGY COMPANY ALREADY DECIDED TO INVEST IN PERU: MAPLE INVESTMENT OPPORTUNITIES THROUGH LAND PURCHASE AGREEMENTS, BUYING STATE-OWNED STOCKS, AND JOINT VENTURE WITH SUGAR CANE AGRIBUSINESS COMPLEX AN OPEN AND STABLE LEGAL FRAMEWORK FOR FOREIGN INVESTMENTS
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THE HIGHEST YIELD OF SUGAR CANE PER HECTARE IN THE WORLD IN 2003 MANAGEMENT AND TECHNOLOGY TOGETHER WITH EXCELLENT ENVIRONMENT AND SOIL CONDITIONS Peru Senegal Burkina Faso Colombia Brazil Mexico China Argentina India 0
20
40
60
80
100
120
thousands of ton/ha.
Source: FAO
A GLOBAL ENERGY COMPANY ALREADY DECIDED TO INVEST IN PERU: MAPLE …In Peru, Maple will continue the development of its ethanol project along the northern coast of the country. http://www.maplecos.com/about_hist.html
THE PROJECT INCLUDES 10,660 HAS. OF SUGAR CANE AND A PLANT OF ANHYDROUS ETHANOL IN THE NORTHERN COAST OF PERU (DEPARTMENT OF PIURA). IT IS EXPECTED TO PRODUCE 113 MILLIONS OF LITERS PER YEAR FOR THE US MARKET THE LAND PURCHASE AGREEMENT TO BE SIGNED WITH THE REGIONAL GOVERNMENT OF PIURA BY SEPTEMBER 2006
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INVESTMENT OPPORTUNITIES LAND PURCHASE AGREEMENTS IN PERUVIAN NORTHERN COAST AND AMAZON REGION. FOR INSTANCE 4,000 HAS. IN JEQUETEPEQUE – ZAÑA VALLEY.
ACQUISITION OF STATE-OWNED STOCKS IN SUGAR CANE AGRIBUSINESS COMPLEXES. FOR INSTANCE: POMALCA. JOINT VENTURE WITH PRIVATE AGRIBUSINESS COMPLEX
INVESTMENT OPPORTUNITIES Peru – Potential Ethanol Feedstocks Feedstock Sugar Cane Rice, Paddy Maize Barley Wheat Quinoa Oats Other Cereals Sorghum Rye Source:
Northern Coast
Tonnes (2004) 7,950,000 1,816,621 1,180,769 176,901 168,744 27,040 11,521 7,000 135 69
Peru Hydrocarbon Assistance Project Ministry of Energy and Mines
Amazon Region
MAPLE
• PUCALÁ • POMALCA • TUMÁN • CARTAVIO • CASAGRANDE • LAREDO • SAN JACINTO • PARAMONGA • ANDAHUASI
Lima city
El Callao port
• CHUCARAPI • Sugar cane agribusiness complex
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AN OPEN AND STABLE LEGAL FRAMEWORK FOR FOREIGN INVESTMENTS FREE PRIVATE INITIATIVE IN A MARKET-BASED SOCIAL ECONOMY RIGHT TO NATIONAL TREATMENT LEGAL STABILITY AGREEMENTS: GUARANTEE OF NON DISCRIMINATION, FREE REMITANCES, INCOME TAX STABILITY, FOR INVESTMENTS CONSISTING IN CAPITAL CONTRIBUTIONS FOR AN AMOUNT NOT UNDER US$ 5 MILLION TO BE EXECUTED IN A TWO YEAR TERM
INCOME TAX IN AMAZONIA: ACTIVITIES IN THE AREA WILL APPLY A 10% RATE FOR INCOME TAX OF THIRD CATEGORY
CUSTOM DUTIES DRAWBACK AGREEMENTS TO AVOID DOUBLE TAXATION
FOR FURTHER INFORMATION PLEASE VISIT WEBSITE:
http://www.proinversion.gob.pe/web_local/english/pqinvertir/marcolegal/cont_1.htm
Perú Strong figures
Strategic location Excellent opportunities Please, Visit our website
http://www.proinversion.gob.pe/
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Appendix
PERU: SUGAR CANE INDUSTRY TODAY (YIELDS 2003) PERU: ETHANOL INDUSTRY TODAY (PRODUCTION 2003) PERU: ANHYDROUS ETHANOL REQUIRED IN BLENDS (2005 – 2012) SOUTH AMERICA: ANHYDROUS ETHANOL REQUIRED IN BLENDS (ESTIMATION 2004) PERU: ANHYDROUS ETHANOL DISTRIBUTION CHANNELS ACCORDING TO THE BIOFUELS LAW
PERU: SUGAR CANE INDUSTRY TODAY Yields in Agribusiness Complex (2003) Cultivated Land (ha) Laredo Tumán Andahuasi San Jacinto Cartavio Casa Grande Paramonga Pucalá Pomalca Chucarapi Total/Average Peru
6,899 9,118 3,639 5,434 10,303 16,966 8,106 8,102 7,638 971 77,176
Age of cutting Yield of sugar (in months cane (ton/ha) average) 16.59 14.80 15.00 15.47 15.56 16.92 16.65 13.79 14.00 20.35 15.91
134.64 118.56 146.00 121.60 135.00 90.00 120.00 82.00 78.00 120.00 114.58
Yield of sugar (Kg. sugar / ton. sugar cane) 120.88 110.91 110.00 108.74 108.00 107.59 106.49 100.06 99.41 84.22 105.63
Source: Technoserve. Ministry of Agriculture. APPAB
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PERU: ETHANOL INDUSTRY TODAY In 2003 national production of hydrous
National Production fo Ethanol (2003) Installed capacity (liters/day)
ethanol was 30 millions of liters 100% of production is hydrous alcohol Cartavio is planning to invest in a anhydrous ethanol plant of 60,000 liters/day
Exports of hydrous ethanol to the Netherlands, Chile, and Sweden for about 11 millions liters in 2004 Imports of hydrous ethanol for about 2
Production (liters/day)
Production (liters/year)
Department of Lambayeque Andesa Pucalá Vari - Ron Pomalca Alvarado Naylan
20,000 12,000 14,000 5,500
18,000 10,000 7,000 3,500
4,500,000 1,750,000 542,500
Department of La Libertad Casa Grande Andesa Casa Grande Cartavio Destilerías Unidas Laredo
60,000 35,000 60,000 40,000 25,000
40,000 60,000 40,000 -
12,000,000 4,000,000 -
Department of Ancash San Jacinto
18,000
14,000
2,800,000
Department of Lima Paramonga (Sugar) Paramonga (Quimpac) Andahuasi TOTAL
20,000 15,000 12,000 336,500
10,000 12,000 214,500
2,000,000 2,400,000 29,992,500
Source: Technoserve. Ministry of Agriculture
million liters in 2004
PERU: ETHANOL REQUIRED IN BLENDS (2005 – 2012) Demand of gasoline Year 2,005 2,006 2,007 2,008 2,009 2,010 2,011 2,012
Barrels 9,275,000 9,485,000 9,730,000 9,940,000 10,185,000 10,430,000 10,710,000 10,990,000
Liters 1,473,797,500 1,507,166,500 1,546,097,000 1,579,466,000 1,618,396,500 1,657,327,000 1,701,819,000 1,746,311,000
Demand of anhidrous ethanol 5% 10% Daily Daily Liters/ Year Liters/ Year production production 73,689,875 245,633 147,379,750 491,266 75,358,325 251,194 150,716,650 502,389 77,304,850 257,683 154,609,700 515,366 78,973,300 263,244 157,946,600 526,489 80,919,825 269,733 161,839,650 539,466 82,866,350 276,221 165,732,700 552,442 85,090,950 283,637 170,181,900 567,273 87,315,550 291,052 174,631,100 582,104
Source: Ministry of Energy and Mines
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SOUTH AMERICA: ANHYDROUS ETHANOL REQUIRED IN BLENDS (ESTIMATION 2004) Gasoline Rank 14.00 35.00 111.00 122.00
17.00 30.00 57.00 66.00 87.00
Thousands of Metric Tons
Country
Millions of Barrels
Billions of Liters
Anhydrous Ethanol (*) (7,5% Blend) Millions of Liters / Year
MERCOSUR Brazil Argentina Uruguay Paraguay SUB TOTAL
11,983.00 2,870.00 218.00 156.00 15,227.00
100.06 23.97 1.82 1.30 127.15
15.90 3.81 0.29 0.21 20.20
1,192.44 285.60 21.69 15.53 1,515.26
ANDEAN COMMUNITY Venezuela Columbia Equador Peru Bolivia SUB TOTAL
9,567.00 3,988.00 1,478.00 982.00 402.00 16,417.00
79.88 33.30 12.34 8.20 3.36 137.08
12.69 5.29 1.96 1.30 0.53 21.78
952.02 396.85 147.07 97.72 40.01 1,633.67
39.00 Chile TOTAL
2,165.00
18.08
2.87
215.44
33,809.00
282.31
44.86
3,364.38
(*) Estimation by ProInversi贸n Source: International Energy Agency, September 2005. Data for 2004.
Agricultural Fields
ETHANOL DISTRIBUTION CHANNEL
Storage
Industrial plant of biofuel
Agribusiness complex Transportation of 100% biofuel
Pipeline
gasoline
Whosale Distributor Blending Plant
- Uses other than fuel
- Export Market
Transportation of 100% biofuel
Fuels distribution channel
Transportantion of blends Fuel station Vehicle of 100% biofuel Vehicle of blend
Fuel station
Notes: - Biofuel producers are able to become whosale distributors. - Ammendement to Biofuels Law will be introduced to allow commercialization of pure anhydrous ethanol. - International ethanol specifications are applicable.
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