SILICON VALLEY BUSINESSMEN TOUR BRAZIL ETHANOL

A group of businessmen from California traveled to Brazil for a seminar that ended on September 22nd, 2006. The seminar centered around renewable energy sources and biofuels and was organized by the International Business Center (Centro Internacional de Negocios - CIN), a partnership between the Federation of The Industries of the State of Rio de Janeiro (FIRJAN) and Rio's SEBRAE, a federal-level organization that assists small and medium enterprises.

The group, which counted fourteen participants, also visited the R&D center of the Brazilian state-owned oil company (Petrobras), in the city of Rio de Janeiro; the National Reference center on Hydrogen Energy, at UNICAMP, in the city of Campinas, interior of Sao Paulo state; ESALQ (Escola Superior de Agricultura Luis de Queiroz), which conducts a weekly survey of the price of ethanol in different parts of Brazil; the COSAN group, Brazil's largest sugar and ethanol company; biodiesel maker Fertibom, in Catanduva, interior of Sao Paulo state; and Dedini, the industrial giant that manufactures most of the industrial equipment used in ethanol and sugar-producing facilities.

The mission was organized by Global California and the Silcon Valley for International Trade Development (SVCITD), organizations connected to West Valley Community College. Sebrae's communication agency reports that the group was researching investment opportunities in the biofuels and renewable energy industries.

According to SVCITD's web site, each participant paid US$ 2,495 and included "energy companies, manufacturers, farmers, VCs, and banks interested in exploring potential opportunities in the renewable energy sector in Brazil".

Henrique Oliveira

Follow what's happening in the Brazilian ethanol market on Ethablog, the only blog in English dedicated to Brazilian ethanol.

FENASUCRO: THE WORLD’S LARGEST EVENT IN SUGAR AND ETHANOL

My comments on the piece below:

While this news item is essentially a translation of the website's Portuguese version, it contains some interesting pieces of information. Most people in the U.S. and elsewhere will not recognize the vast majority of names in the list of participating companies, which follows the last chart.

If you look closely enough, however, you will find names like GE, Shell, Texaco, and Toyota, to name only a few. H.O.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
The 14^th. edition of Fenasucro, the Brazilian National Fair of Sugar and Ethanol, and the IV Sugarcane Technology Business Fair were held simultaneously from 19 to 22 September, 2006, in the city of Sertaozinho, near the city of Ribeirao Preto, in the interior of Sao Paulo state.

Both fairs were attended by over 55 thousand people, a number that came in at 10% above initial forecasts. The large number of visitors, which included people from all parts of the world, including the U.S., India, and Australia, demonstrates the elevated demand for Brazilian ethanol and ethanol-related products and services.

A total of 55o companies set up booths at the fairs.

Number of visitors in past events:















List of participating companies:

A. GUERRA S/A É PAZ NA ESTRADA
ABB
ABIMAQ
ACATEC
ACE SCHMERSAL
ACESITA
ACIONAC
AÇOBRIL
AÇOFERA
AÇOFORJA
ACOFREM DO BRASIL
AÇOMETAL
ACQUAQUIMICA - SETA
AEROELETRÔNICA IND. COMPONENTES AVIÔNICOS S/A
AESA
AFC DO BRASIL - VENTILADORES
AFIAR FERRAMENTAS
AGCO DO BRASIL LTDA
AGECOM
AGF BRASIL
AGRO-FOL
AGROSYSTEM
ALCOLINA
ALFA LAVAL
ALFATERM
ALLPROT
ALLTEC QUÍMICA
ALPHA EQUIPAMENTOS ELÉTRICOS LTDA
ALPHAPNEUS
ALPINA
ALVENIUS EQUIPAMENTOS TUBULARES
ANAEROBICOS DO BRASIL
ANDRITZ SEPARATION
ANHEMBI BORRACHA
ANTARES ACOPLAMENTOS
ANTICORROSIVA
APV SOUTH AMÉRICA
ARCA RETENTORES
ARINOX
ART ARATROP INDUSTRIAL
ASCOVAL INDUSTRIA E COMÉRCIO LTDA
ASTÉCNICA
ATA ANTONIOSI
ATB BALDAN
ATP REPRESENTAÇÃO
AUBERT
AUTEQ COMPUTADORES E SISTEMAS
AUTHOMÁTHIKA - SISTEMAS DE CONTROLE
AYRESTECH
B.BOSCH GALVANIZAÇÃO DO BRASIL LTDA.
BAL ICS
BALANÇAS AÇÔRES
BALANÇAS SATURNO
BANDEIRANTES PRODUTOS
BASEQUÍMICA
BAUER IRRIGATION
BAUKO MAQUINAS
BELENUS
BERACA SABARÁ
BERG-STEEL
BIG TECNOLOGIA
BIOCHAMM CALDEIRAS
BNDES
BOMBAS ANDRADE
BORTOLOT
BOSCH REXROTH
BRACOL
BRAPENTA
BRASBOM BOMBAS DE VÁCUO E DOSADORAS
BRASIF
BRAY CONTROLS
BREMEN IMPORTADORA
BREVINI LATINO AMERICANA
BRUMAZI EQUIPAMENTOS INDUSTRIAIS
BS
BUCKMAN LABORATÓRIOS LTDA.
BUSSOLA FERRAMENTAS
C.S.J. - METALÚRGICA
CALDEMA
CANTRAC
CARAVELA
CARBINOX
CARTHOM'S
CASA DOS ROLAMENTOS
CASALE EQUIPAMENTOS
CASE IH
CASTROL INDUSTRIAL
CEISE/CIESP
CELMAR
CÉLULA AUTOMAÇÃO INDUSTRIAL
CENTURY ALTA TECNOLOGIA EM BOMBAS
CESTARI
CETEC
CFM DO BRASIL
CHOICE VIKA CONTROLS
CIBA ESPECIALIDADES QUÍMICAS
CITROTEC
CIVEMASA
CLARK-KOCH
COAGRIL COMERCIAL INDUSTRIAL AGRICOLA LTDA.
COESTER AUTOMAÇÃO
COMANBOR
COMEGA
CONAUT
CONSTRUTEC
CONTECH
CONTEMP
CONTROL SYSTEM
COOPERCITRUS-VALTRA
COOPERTOOLS
COPERCANA
COREMAL
CORREIAS MERCÚRIO S/A IND. E COM.
CRIART ETIQUETAS METALICAS E ADESIVOS
CROSBY
CSB
DANFOSS
DBD FILTROS
DEB'MAQ
DEDINI S/A INDUSTRIAS DE BASE
DELAMANO
DIAGNERG
DIGIMAT
DIGI-TRON BALANÇAS
DINÂMIC SERVICE
DINATÉCNICA
DISTRINOX
DLG AUTOMAÇÃO INDUSTRIAL LTDA.
DMB
DOSITEC BOMBAS
DRIA IMPLEMENTOS AGRICOLAS
DURCON EQUIPAMENTOS INDUSTRIAIS LTDA
DUTEX TUBOS
EDRA
EDWARDS
ELETRO BUSCARIOLI LTDA.
ELINOX
ELIPSE
ELOS & PPR
EMBRASUL
EMBRAVAL
EMBU / ACATEC
EMPRAL
ENDRESS+HAUSER
ENGEVAL
EPIL
EQUILIBRIO BALANCEAMENTOS
EQUIPALCOOL
ESCANDINÁVIA VEÍCULOS LTDA
ESPIROFLEX
ESTRADEIRO AUTO PEÇAS LTDA
EXPAMETAL
F. MASTER SISTEMAS DE MEDIÇÃO
FAST
FERNAVAN
FERRAMENTAS GERAIS
FERRUSI
FERTILANCE
FERTRON
FESTO AUTOMAÇÃO
FIO DE CHUMBO
FIVES LILLE
FRATO
FREFER  S/A   IND. E COM. DE FERRO E  AÇO.
FUNDIÇÃO ÁGUA VERMELHA
FUNDIÇÃO MORENO
FURLAN FERRAMENTAS DE CORTE
GAIL ARQUITETURA EM CERÂMICA
GARDNER DENVER NASH
GASCOM
GATEC S/A
GATES
GBA CALDEIRA
GE FANUC DO BRASIL
GE INFRASTRUCTURE WATER & PROCESS TECHNOLOGIES
GEA DO BRASIL INTERCAMBIADORES
GEFRAN BRASIL
GENEBRE DO BRASIL
GENERAL CHAINS DO BRASIL S/A
GEOTECNO
GERDAU COMERCIAL DE AÇOS S/A.
GERENCIAL
GPS AGRIMENSORA
GR ASSESSORIA
GRUPO BIO SOJA
GRUPO FEITAL
GUMMI
HCI HIDRÁULICA
HEINZMANN
HELAMIN BRASIL INDÚSTRIA E COMÉRCIO
HELIFAB BOMBAS  HELICOIDAIS
HENFEL
HENKEL TECNOLOGIES
HERBICAT
HEROM
HIGRA INDUSTRIAL LTDA
HIPPERQUÍMICA
HITER
I.P.E.
IBRA AGRISCIENCES
IDEA NEWS
IFB BIOTECNOLOGIA / LOFFREDO & MORETTI ENGENHARIA
IFM ELECTRONIC
IKEDA
IMBIL
IMEFER
IMV VÁLVULAS
INAL
INBRANOX
INCUBADORA DE EMPRESAS DE JARDINÓPOLIS
INCUBADORA DE EMPRESAS DE JUNDIAÍ
INCUBADORA DE EMPRESAS DE SANTA BÁRBARA D'OESTE
INDUSTÉCNICA
INOX TUBOS
INOXPIRA AÇOS INOXIDÁVEIS
INSTITUTO AGRONÔMICO – IAC
INTACTA ROLAMENTOS
INTERATIVA
INTERENG AUTOMAÇÃO
INTERVAL
IOPE INSTRUMENTOS DE PRECISÃO LTDA.
IORGA
IRRIGABRAS
IRRIGABRASIL - SISTEMAS DE IRRIGAÇÃO
ISOPLAST
ISOTREF TUBOS TREFILADOS
ISOVER
ITAL
ITALBRONZE
ITALINDUSTRIA
ITECA SOCADEI
ITW CHEMICAL
JARAGUÁ EQUIPAMENTOS
JIMENEZ IRRIGAÇÃO
JOMAPE AUTOMAÇÃO INDUSTRIAL
JOPLAS
JORNAL CONEXÃO CANA BRASIL
JORNAL PARANÁ AÇUCAR E ALCOOL
JUMIL
JURESA CANAVIEIRA
JW
JY
KCEL
KLINGER
KLÜBER LUBRICATION
KOBLITZ
KROMINOX
KSB
LAAPSA
LABOR SOLUÇÕES INDUSTRIAIS
LABTESTE
LAMIFLEX
LEMASA
LEONEL ENGENHARIA
LEROY SOMER
LINDSAY AMAERICA DO SUL
LIONS CLUBE DE SERTÃOZINHO
LNF LATINO AMERICANA
LOSINOX
MAC MANUTENÇÃO AGRÍCOLA
MACOPEMA
MAG TRANSFORMADORES
MARANGHETTI & MARRA
MAUSA
MAXITRATE
MAYEKAWA
MECAT
MEINCOL DISTRIBUIDORA DE AÇOS LTDA
MENPHIS ENGENHARIA TÉRMICA LTDA
MERCOTUBOS TUBOS DE AÇOS
METALCORTE - FUNDIÇÃO
METALCORTE - MOTORES
METALLIC
METALPLAN
METALTEX
METALTINTAS
METISA
METTLER-TOLEDO
MGA SERVICE
MICRONAL
MICROPRECS
MILLS
MIPEL
MOLYPLAST
MORAES EQUIPAMENTOS AGRÍCOLAS
MOTOCANA
MOVEQUIP
MS TUBULAÇÕES INDUSTRIAIS
MULTIAÇOS
MULTIPLUS EVENTOS
MULTIPLUS EVENTOS
MULTITEK
MUNTERS BRASIL INDÚSTRIA E COMÉRCIO LTDA.
NACHI
NALCO BRASIL LTDA.
NATIONAL INSTRUMENTS
NETAFIM BRASIL
NETZ SERVICE
NETZSCH DO BRASIL
NEXUS E.P.I
NG METALÚRGICA
NIAGARA COM. E IND.
NIAGARA COMERCIAL
NILKO
NOMA
NORTEL
NOVA INOX
NOVUS
NSK DO BRASIL
NÚCLEO INOX
NUTRION - GESSO AGRÍCOLA
NYKON DWYLER
OBO BETTERMANN
OMEGA TUBOS
OROBICA
ORTOVEL CAMINHÕES
OTMA
OXIPIRA
PAINCO
PALÁCIO DAS FERRAMENTAS
PARKER
PARKER HANNIFIN
PARKITS
PAZ PAZINI
PEPPERL + FUCHS
PERENNE
PERMETAL
PERSICO PIZZAMIGLIO
PG ELEVAÇÃO DE CARGAS
PHELPS DODGE
PICCIN
PIPE SISTEMAS TUBULARES LTDA.
PLANUSI
POLIBOR
POLIMATE
POLIRON
PREFEITURA MUNICIPAL DE SERTÃOZINHO
PROCANA
PROCESSO INDUSTRIAL
PROCKNOR ENGENHARIA
PRODUQUIMICA
PROLINK CORRENTES E EQUIPAMENTOS
PROMINAS
PROMINENT
PROMOEN
QUIMATEC
QUIMATIC
RAESA BRASIL
RAM AUTOMAÇÃO E CONTROLE
RENK ZANINI
RENTANK MACROGALPÕES IND. E COM. DE COBERTURAS
REPASA
RETEMA
REVISTA ALCOOLBRÁS
REVISTA BIODIESEL
REVISTA NEI / GUIA NEI
REVISTA P&S - A REVISTA QUE GERA NEGÓCIOS
REXNORD CORRENTES LTDA
RG  SERTAL
RIBERTEC AUTOMAÇÃO
RIZZIVAL
RODO LINEA
RODOFORT
ROMASUL
ROMERA IRRIGAÇÃO
ROMI
RR USINAGEM E CALDEIRARIA
RTS
RUN TIME
RUTER
SANDET - LIMPEZA AUTOMOTIVA E INDUSTRIAL
SANTA IZABEL IMPLEMENTOS AGRÍCOLAS LTDA
SANTAL
SANTANENSE
SASIL
SCHNEIDER ELECTRIC
SCREENS DO BRASIL
SEBRAE - SP
SELFTECH
SENAC SÃO PAULO
SENSE ELETRÔNICA
SERCOM
SERGOMEL
SERMAG
SERMATEC
SERTECIN
SES SURFACE ENGINEERING SERVICES LTDA-ME
SETTIMOTUBO
SEW EURODRIVE BRASIL LTDA.
SHELL
SHOCKMETAIS
SICREDI
SIEMENS
SILVER WEIBULL
SIME DO BRASIL
SIMISA
SINER ENG. E COM. LTDA
SISCAP
SISTEMA PRODUTOS PARA CONTROLE DE PRAGAS
SITRON
SIVA IND. COM. DE ARTEFATOS DE ARAME E AÇO LTDA.
SKF DO BRASIL
SM
SMAR
SMV VÁLVULAS
SNR ROLAMENTOS DO BRASIL LTDA.
SOLDERING
SOMASSEY // LOPES - DIVISÃO MATERIAL RODANTE ITM
SOS SERVICE
SOTEQUI
SPIRAX SARCO
SPRAYING SYSTEMS
STAB
STEMMANN
SUCRAL
SUMITOMO
T&P TECHNOLOGY
TATÚ / MARCHESAN
TEADIT
TEC PEÇAS FILTROS E PEÇAS
TECFLUX-SWAGELOK
TECHNOPULP INDUSTRIAL
TECNIPLAS
TECNO MOAGEIRA
TECNOFINK
TEKBOND
TELECAMP TELECOMUNICAÇÕES, INFORMÁTICA
TEREX LATIN AMERICA
TEXACO
TEXAS TURBINAS A VAPOR
TGM TURBINAS
THERM CABOS ESPECIAIS
THOR-PEÇA PARA TRUCKS E CARRETAS, KOPPE, NEW RODAS
TIMKEN
TINTAS PERFORTEX
TINTAS SUMARÉ
TJA  VÁLVULAS INDUSTRIAIS
TOLEDO DO BRASIL
TORKFLEX
TOYOTA
TRACAN
TRACBEL S.A.
TRANTER DO BRASIL
TRIBOTEC
TUBELLI
TUBERFIL
TUBEXPRESS
TUBOS IPIRANGA
TUBOS OLIVEIRA
TURBIMAQ
UBYFOL
UDOP - FEICANA
UNESP - JABOTICABAL
UNIBRASIL UNIFORMES
UNICA
UNIVAL
USICAMP LTDA
VALEQ VÁLVULAS
VALMONT / VALLEY
VÁLVULAS S. F.
VARIMOT ACIONAMENTOS
VARIXX
VAZ QUÍMICA
VEDACERT
VENTEC
VEST-TELAS - VESTIMENTAS E TELAS TÉCNICAS
VETRO INDÚSTRIA COMÉRCIO E SERVIÇOS LTDA.
VIBROPAC
VIBROSERT
VIDEOJET DO BRASIL
VILLARES
VISÃO ROLAMENTOS
VONDER
VORAX
VTR VETTOR EQUIPAMENTOS INDUSTRIAIS LTDA.
VULKAN
WALTER TECNOLOGIAS EM SUPERFÍCIES
WBA - DIVISÃO AÇÚCAR & ÁLCOOL
WEATHERFORD GEREMIA
WEG
WELDING  DE SOLDAGEM E INSPEÇOES
WERK-SCHOTT MIRASSOL
WESTFALIA
WIREX CABLE
WOMA EQUIPAMENTOS LTDA
WOODWARD
WPP REFORMA DE MÁQUINAS
WS AUTOMAÇÃO INDUSTRIAL
WUXAL-FAFENA
YASKAWA
ZAMPROGNA
ZEPPONI
ZKL ROLAMENTOS
ZOBOR

Follow what's happening in the Brazilian ethanol market on Ethablog, the only blog in English dedicated to Brazilian ethanol.

EXAME MAGAZINE: SMALL AND MEDIUM BUSINESSES THRIVE AROUND BRAZIL ETHANOL

Go to original

This is the second installment in a three-part series about small and medium companies in Brazil that have seized opportunities related to the need to modernize sugar and ethanol plants. By supplying technology and new services to a growing sector, they have achieved extraordinary growth. H.O.

Exame Magazine (the Brazilian equivalent of "BusinessWeek")

August 24th, 2006

by Juliana Borges

For centuries, sugarcane, the first great crop to act as a major driving force behind the Brazilian economy in colonial times, was grown in the same basic fashion: covering extensive areas, with low yields, no mechanization, and, oftentimes, with laborers toiling away under degrading conditions. However, over the past ten years, this landscape has been changing radically. The plants have abandoned their archaic practices and have become modern, profitable enterprises. In order to accomplish this goal, they have been making sizable investments in everything from technology and genetic research to logistics and outsourcing.

That’s where small and medium companies fit in. The plants cannot lose their focus on their core business: producing sugar and ethanol. “We need people who can supply technology and innovation, both in the agricultural and in the industrial areas”, says Rodrigo Sanches, the heir to the Sao Domingos refinery in Catanduva, in the interior of Sao Paulo state. Sao Domingos has a list of eighteen small and medium services contractors. Among these smaller firms, there is a consultancy in quantitative research, hired to optimize the management of the hundreds of variables involved in the technology of production and logistics. “We need to know how to apply the best possible combination to achieve maximum profits”, says physicist Aguinaldo Ricieri, who is responsible for the plant’s modernization project.

One of the fields that offers the best opportunities for small and medium companies is advanced research. Companies that develop new strains of sugarcane, through genetic manipulation, study alternatives to better use bagasse (crushed sugarcane), and enhance the techniques connected to precision agriculture, among other activities, are innovating in the field and finding room for growth.

That is precisely what is happening with CanaVialis and Alellyx, companies that, over the past three years, have received US$ 40 million from Votorantim Novos Negocios (VNN), a subsidiary of Brazilian giant Votorantim, dedicated to investments in start-ups. “The potential for growth of small businesses in areas related to technological development is very big”, says Fernando Reinach, a director at VNN. “In the sectors in which Brazil is a leader, as is the case with ethanol, the potential is even bigger.”

Based in Campinas, in Sao Paulo state, where Unicamp, one of Brazil’s leading universities, is located, CanaVialis conducts R&D to genetically enhance different species of sugarcane, in addition to providing consulting services in planting and production management. This kind of knowledge is extremely valuable for the strategic planning of refineries. The value of a sugarcane plantation is determined by its sugar content – the more sugar per ton, the more the sugarcane is worth, because it has a greater energy value. Genetic manipulation in labs allows for the development of news species that contain more sugar and are, therefore, capable of producing more ethanol or sugar.

(to be continued)

Follow what's happening in the Brazilian ethanol market on Ethablog, the only blog in English dedicated to Brazilian ethanol.

INIFINITY BIOENERGY PUTS UP WEB PAGE

Infinity Bio-Energy has just put up a web site: http://www.infinitybio.com.br. What follows below is their opening statement.


~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Infinity Bio-Energy is a company created principally to acquire, build and operate sugar and ethanol production facilities with a focus on Brazil. Formed in March 2006, our goal is to become a global leader in the production and distribution of ethanol and other biofuels, as well as a relevant sugar manufacturer and exporter.

The Company leverages management's global experience both in sugar and ethanol production, as well as in other industries, to maximize growth and value creation for our shareholders. Management plans to utilize sophisticated and integrated production, management and financial tools and techniques to ensure efficient company operations.

Infinity Bio-Energy intends to grow rapidly both through strategic acquisitions and Greenfield development, while maintaining strict financial discipline and world-class business practices.

Follow what's happening in the Brazilian ethanol market on Ethablog, the only blog in English dedicated to Brazilian ethanol.

INDIA PRIME MINISTER HEADS DELEGATION TO BRAZIL

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The President of Brazil, Luis Inacio “Lula” da Silva, is negotiating a strategic partnership with representatives from India. It is the largest bilateral agreement signed by his government since a Chinese delegation, headed by Hu Jintao, visited Brazil in 2004.

A group of government officials and businessmen from that country arrived in Brazil on Sept. 11th, with the objective of strengthening ties between the two countries and developing business opportunities.

The delegation from India, led by Prime Minister Manmohan Singh, left India for Brazil and Cuba to attend the IBSA (India-Brazil-South Africa) and NAM (Non-Aligned Movement) summits. Before leaving, while addressing reporters in New Delhi, Manmohan described the 116-member NAM as a “great movement.”

The delegation from India also includes approximately fifty business and industry leaders, who have been at the forefront of an accelerated process of international expansion. In the first six months of this year alone, Indian companies have acquired 76 companies in other countries, in deals that total US$ 5.2 billion.

This amount is just shy of what India received in direct foreign investments in 2005, US$ 5.5 billion.

Among the new acquisitions, the largest was the purchase of oil wells in Brazil by India’s state-owned ONGC Videsh, which invested US$ 1.4 billion in the deal, according to an assessment carried out by FICCI (Indian Federation of Trade and Industry Chambers). The oil industry has also attracted the attention of Australian Mine Planning & Construction, which has acquired rights to explore oil in Brazil. Brazil is the company’s most important destination after India.

The company’s general manager, Simran Bedi, said the investment, in its first phase, should reach US$ 1.5 billion, but that, over a period of fifteen years, capital expenditures should exceed US$ 18 billion.

India imports about 70% of the oil it uses, a fact which contributes significantly to its trade imbalances, especially with oil hovering around US$ 70/barrel. Last year, the country presented a US$ 42 billion deficit in its trade relationships, US$ 30 billion of which were caused by steep oil prices. Under these conditions, one of India’s main concerns is to foster cooperation with Brazil in the ethanol fuel business.

India’s largest sugar producer, Bajaj Hindusthan, has US$ 500 million in cash to invest in the sector in Brazil. Two other companies, Rajsheru and Renuka, have expressed interest in doing business with Brazil, according to R. Viswanathan, India’s former consul in Sao Paulo, currently the government official in charge of Latin America at the Indian Foreign Ministry.

Joint initiatives in agricultural R&D

Silvio Crestana, the president of the Brazilian Company for Research in Agriculture, known by its acronym in Portuguese, Embrapa, and India’s ambassador to Brazil, Hardeep Singh Puri, have signed an agreement, effective as of 2007, between Embrapa and the Indian Council on Agicultural Research (ICAR).

This agreement, dubbed an “Action Plan”, involves sixteen of Embrapa’s research units and provides for the education and training of Indian engineers and other professionals in Brazil, and of Brazilians at ICAR, in India. Sugarcane, soy, corn, fruit, and different vegetables are the main crops being contemplated. Plant biotechnology, integrated management of pests, water supply stewardship, and enhancement of animal health are also part of the agreement.

The Plan also provides for initiatives in germoplasm. Brazil will send to India different strains of banana, guava, corn, and wheat, among other plants, and will receive from India strains of soy that are resistant to Asian rust, as well as millet, sorghum, and wheat germoplasm. India will also work with Brazil to help that country improve its processes for extracting oil from papaya.

Follow what's happening in the Brazilian ethanol market on Ethablog, the only blog in English dedicated to Brazilian ethanol.

EXAME MAGAZINE: SMALL AND MEDIUM BUSINESSES THRIVE AROUND BRAZIL ETHANOL

Go to original

This is the first installment in a three-part series about small and medium companies in Brazil that have seized opportunities related to the need to modernize sugar and ethanol plants. By supplying technology and new services to a growing sector, they have achieved extraordinary growth. H.O.

Exame Magazine (the Brazilian equivalent of "BusinessWeek")

August 24th, 2006

by Juliana Borges

Proxima has its headquarters in the small town of Assis, in the westernmost region of the state of Sao Paulo. It is a company with revenues of about 30 million reais, specialized in developing software for the management of sugarcane production. Since 2003, Proxima has grown at a rate of 30% a year – an exceptional performance even when compared to other prosperous small businesses. Today, one of the main problems faced by Gilberto Girardi, 42, one of the company’s partners, is to meet all the orders placed by new clients. “The demand for our services has grown a lot”, he says. “About 40% of sugarcane grown in Brazil is already processed using our software and, by the end of the year, that number should reach 45%.”

After years of stagnation, the sugar and ethanol business is experiencing a rebirth in Brazil, thanks to an increase in the global demand for ethanol as an alternative to oil. Ethanol plants have never produced so much. To succeed in the world market, they need to rapidly increase productivity – a fact that drives up demand for Proxima’s software, designed to plan harvesting and to identify bottlenecks in production.

Just like the company headed by Girardi, many other small and medium companies that supply goods and services to the sugar and ethanol refineries are also going through very good times. With the need to urgently modernize the field, they have a unqiue – and sizable – opportunity to quickly expand their businesses. “

In addition to servicing the 300 plants that are already operational, the small and medium companies will also benefit with the establishment of 100 new units, currently under construction in Brazil and scheduled to become operational by 2010”, says Antonio de Padua Rodrigues, a consultant with UNICA, the powerful association of sugarcane growers of the state of Sao Paulo.

In addition to Proxima, other companies from the same state are examples of how to grow aggressively, while innovating in the ethanol and sugar supply chains. Other good examples are Agrop, which supplies outsourced transportation and labor for the sugarcane fields; Purifilt, which manufactures diesel oil for tractors; Bortolot, a company that manufactures and installs electronic control panels for factory control; and CanaVialis, a part of the huge Votorantim group, which carries out R&D in new varieties of sugarcane.

Ethanol production is concentrated in the interior of Sao Paulo state, where 60% of Brazilian ethanol is made. Most of the small and medium companies are also located there, supplying technology to a number of fields, mainly in the city of Sertaozinho. This city, in the north of the state, is located 25 km from Ribeirao Preto and is a solid example of the strength and modernization that the sugar and ethanol business has undergone in the past ten years in Brazil. According to local businessmen, it is possible to buy, in a single day, components for an entire plant – from machinery to fertilizer, from cauldrons to bolts. The city brings together over 200 manufacturers connected to the industry. Many of them are small and medium businesses.

Many companies based there have been growing at amazing rates. Bortolot is a case in point. It manufactures control panels for sugar and ethanol plants. “In six years, our revenues went from six million to seventeen million reais (~US$ 2.7 to 7.7 million)”, says Devanir Bortolot, 48, one of the company’s owners.

The control boards are used to control how the cauldrons and other pieces of equipment work. Three years ago, Bortolot launched intelligent panels that minimize the amount of energy needed for each piece of machinery. That action alone allowed a 30% reduction in the total power expended. The economies in costs are already translating into greater sales. “In a year and a half, we have planned and executed the electric design for two refineries and eight sugar factories”, says Bortolot. “We have received a growing number of orders from plants in parts of Brazil that didn’t use to plant sugarcane until a short while ago.”

(to be continued)

My comments on the piece above:

Brazil has been developing technology not only in the business of growing sugarcane and producing ethanol and sugar, but also in many adjacent fields. Biofuels companies worldwide would do well to study the Brazilian experience and investigate the possibility not only of executing mergers and acquisitions, but also of developing joint ventures. H.O.

Follow what's happening in the Brazilian ethanol market on Ethablog, the only blog in English dedicated to Brazilian ethanol.

INFINITY BIOENERGY TO BUILD TWO SUGAR PLANTS IN BRAZIL

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Valor Economico

by Monica Scaramuzzo

August 4^th, 2006

Infinity BioEnergy, traded on the London stock exchange, has announced that it will incorporate the Evergreen fund, which controls three sugar and ethanol plants. According to Sergio Thompson-Flores (picture), Infinity’s CEO, the company intends to build two other units that will become operational as of 2008.

Thompson-Flores has said that US$ 526 million have been slotted for investments in Brazil this year. Created in May 2006, Infinity BioEnergy opened its capital on the London bourse. “The company is formed by about fifty investors; among them, American fund Kidd & Company, which, at the beginning of this year, intermediated the acquisition, on Infinity’s behalf, of the Coopernavi plant, in Navirai, Mato Grosso do Sul state.

In Brazil, Infinity now controls the Nanuque and Cridasa plants, in the states of Minas Gerais and Espirito Santo, respectively, in addition to the Coopernavi plant.

The acquisition of Cridasa was finalized in early July '06. The three plants have a joint milling capacity of 3.5 million tons of sugarcane, and are scheduled to receive investments to expand their capacity to a total of 5 million. The two new plants envisaged by the company will be built in the cities of Montanha, also in Espirito Santo state, and Lajedao, in Bahia state. The five investments total R$ 400 million (~US$182 million).

Infinity BioEnergy’s strategy in Brazil is to establish a foothold in regions with little tradition in sugarcane, so as to leverage the growth potential in these areas. With the exception of Minas Gerais, where Alcana is located, the state of Espirito Santo, Mato Grosso do Sul, and Bahia produce low volumes of sugarcane, but are considered regions with a sizable capacity for growth in the sugar and ethanol industry.

“Infinity has long-term plans, with investments projected for the coming eight years”, says Thompson-Flores.

The Evergreen fund landed quietly in Brazil at the end of last year, when it acquired the Alcana plant. This acquisition, however, was only disclosed in 2006, when the fund was already negotiating its second plant. “Evergreen mapped the Brazilian market to discover opportunities with sugar and ethanol”, says Thompson-Flores.

The increase in the international prices of sugar and the steady demand for ethanol both in Brazil and abroad are attracting investments by international groups and funds. Evergreen was the first fund to invest in the field.

Follow what's happening in the Brazilian ethanol market on Ethablog, the only blog in English dedicated to Brazilian ethanol.

'ECONOMIST' JOURNALIST DISCUSSES BRAZILIAN ETHANOL AT UNICA MEETING IN SAO PAULO

The Sugarcane Agribusiness Union of the State of Sao Paulo, better known by its Portuguese acronym, UNICA, invited Indian journalist and author Vijay V. Vaitheeswaran, who regularly writes for Britain’s “The Economist”, based in New York City, to talk about Renewable Energy to an audience composed of businesspeople, journalists, government officials, and leaders from the energy industry. The meeting took place at Sao Paulo’s World Trade Center, on Monday, September 4^th.

At 10 a.m., the president of UNICA, Eduardo Pereira de Carvalho, addressed the gathering. Mr. Vaitheeswaran’s presentation took place at noon. The meeting at the WTC/SP foreshadows the Ethanol Summit 2007, which will take place in Sao Paulo in June 2007.

Follow what's happening in the Brazilian ethanol market on Ethablog, the only blog in English dedicated to Brazilian ethanol.

BRAZIL INVESTS IN CARIBBEAN SUGAR AND ETHANOL TO BYPASS U.S. IMPORT TARIFF

My friends at Biopact picked up the story below, which reports on a joint-venture between Brazil’s Coimex and Jamaica’s Petrojam, which have come together to acquire two large sugar factories in Jamaica, Frome and Monymusk.

Biopact lists as the main reason Brazil’s higher productivity in the sugar and ethanol business.

I would add that another incentive would be the U.S. Department of Commerce’s Caribbean Basin Initiative, which allows the export of ethanol from certain countries into the United States without the need to pay the 54-cent tariff per gallon imposed on ethanol exported directly from Brazil.

Biopact reports:

Brazilians going abroad to buy up ethanol plants and to replant sugarcane

Brazilian investors and companies with 3 decades of experience in sugarcane and biofuel production are going abroad to buy up inefficient sugar mills and ethanol plants to convert them into hyper-efficient, streamlined complexes that deliver alternative energy. While they are at it, they re-plant sugarcane lands with high yielding and disease tolerant varieties that were developed over the years through Brazil's extensive sugar cane biotech and genomics research efforts (Brazilian scientists were the first to sequence the sugarcane genome, and the country hosts the largest collection of (transgenic) sugarcane varieties on the planet).

Brazilian ethanol firm Coimex, for example, has joined Jamaica's Petrojam in a joint bid for the country's two largest and most efficient sugar factories, Frome and Monymusk, which together account for 65 per cent of the island's output. If government signs off on the bid, it will form the basis for the partners, who have already acquired land for the development of a second ethanol plant at a cost of US$16 million, to make ethanol feedstock locally. It is estimated that the transformation cost of the factories and sugar lands will carry a US$100 million (J$6.6 billion) price tag. According to the ambassador of Brazil, the project would involve full replanting of the sugar lands to significantly improve cane yields and productivity. This, along with modernisation of the plant, would cost in the region of US$100 million, according to the Brazilian's estimate.

Although the transformation of the factories and land will still focus on the production of sugar, an important element of the project will involve the production of hydrous or wet ethanol locally which could then be dehydrated at the plant located on Marcus Garvey Drive along the city's harbour. Last September, the Petrojam/Coimex joint venture, Petrojam Ethanol Limited (PEL), started production from its 40 million gallon plant located on Petrojam's existing premises.

That investment cost about US$12 million and has since yielded an estimated J$246 million in profit from J$2.25 billion in revenue from 70 million litres (19 million gallon), up to the end of March 2006. The partnership, over the next few months, plans to move into the next development phase in which it will build a 60 million gallon plant at a cost of US$16 million, having already secured the land on which it will be sited further along the Marcus Garvey Drive strip, a location which ensures access to the Kingston harbour.

Follow what's happening in the Brazilian ethanol market on Ethablog, the only blog in English dedicated to Brazilian ethanol.

BNDES LISTS FIVE MOST COMPETITIVE COUNTRIES IN ETHANOL PRODUCTION

The chart above was prepared by Luiz Carlos Correia Carvalho, former president of UNICA, the powerful association of sugarcane businesses of the state of Sao Paulo and, later, chairman of the Brazilian Industry Chamber of Sugar and Ethanol, part of that country’s Ministry of Agriculture.

The first column lists the countries where ethanol is most competitively produced*. The middle column defines indices for each of them (with the world average equal to 100) and the column on the left shows the number of tons of total sugars produced per hectare.

The chart is part of a broader study published by Mr. Carvalho, who based his data on the 1999-2000 sugarcane harvest. It was subsequently published by the Brazilian government’s national development bank (BNDES) in 2003.

In June 2005, Mr. Carvalho participated in an IEA conference in Paris, during which he delivered a presentation on the Brazilian experience with biofuels in general and ethanol in particular. This session was followed by another that analyzed “the separate elements of a national biofuels strategy: designing a national cost-benefit analysis, creating a proper regulatory and policy framework, and establishing national environmental standards. Presenters also addressed the socio-economic/sustainable development component, including rural community development, environmental impacts, income generation, and the foreign currency potential.”

*These figures already discount income from byproducts. In Brazil, for example, the crushed sugar cane, or bagasse, is burned to generate the heat necessary to process the fuel. While energy generation through bagasse burning used to be considered a marginal product just a few years ago, it currently accounts for 8% of a typical Brazilian refinery’s revenues, as excess energy may be sold to the national power grid.

Follow what's happening in the Brazilian ethanol market on Ethablog, the only blog in English dedicated to Brazilian ethanol.