Company &
Industry
Founders
Established by
a group of American and Brazilian investors and professionals in
2006.
The Biodiesel Market
Global Ag Biodiesel is a pioneer in the region of Western Bahia.
It is developing its activities following an integrated logistical
and industrial processes. The innovative model which will create
direct business relations with the vegetal oil market, as well as
the producers promoting new crops in the region for production of
biodiesel.
The global concern with preservation of the
environment has resulted in the adoption of diverse international
initiatives such as the Directive 2003/30/EC of the European
Parliament, the Energy Policy Act of 2005 of the United States of
America, the Protocol of Kyoto and the Biodiesel Law in Brazil.
The intention of these laws is to stimulate substitution of oil for
clean and renewable fuels; including biodiesel.
The primary consuming and
producing market of biodiesel is the European Union. According to
Oil World, the European Union will have and estimated capacity to
produce approximately 10 million m³ of biodiesel by 2010, versus a
projected demand of 13.3 million m³. In Brazil, biodiesel is
mainly used as a mixture with diesel oil. The Law of the
Biodiesel will mandate the use of biodiesel of a minimum
percentage of 2% in 2008 and 5% in 2012. However, when
production reaches 2.5 billion liters the 5% mixture can be
implemented, which is expect to take place in 2010.
With the objective of promoting
investment in the production of biodiesel, the National Council of
Energy Politics (CNPE) decreed that Petróleo Brasileiro S.A. -
Petrobras and its subsidiary Refinery Alberto Pasqualini - REFAP
S.A. (REFAP). would be required to purchase from producers biodiesel
through public auctions promoted by the ANP.
The Ministry of Mines and Energy
(MME) estimates that the current potential market for biodiesel is
840.000 m³, reaching the volume of 1.0 million of m³ per year in
2008. By 2010, the volume is expected to be 2.5 million m³ per
year because of the government's requirement of 5.0% mixture in all
diesel sold in Brazil.
Availability of natural resources
Brazil presents
favorable natural conditions to become an important world-wide
producer of biodiesel, including the availability of extensive areas
of cultivable land, which are not conducive for food crops, but very
appropriate for different species of oleaginous plants, that can be
used for production of biodiesel. The PNPB adopted a not restrictive
boarding how much to the substances cousins of which if it can
produce biodiesel, such as mamona, sunflower, soy, cotton, amongst
others. This flexibility allows the ample efficient use of
available land for agriculture in Brazil.
Experience in Renewable fuel development
Brazil is world-wide reference in the fuel use renewed. The National
Program of the Alcohol - Proálcool (Proálcool), implemented in the
decade of 70, is the biggest program of fuel substitution derived
from the oil for a renewable fuel of the world, being Brazil
currently world-wide the producing and consuming greater of alcohol
as combustible to propagate. The Company believes that the
experience accumulated with Proálcool will favor the development of
the Brazilian market of biodiesel. Moreover, Brazil was pioneering
in the creation of the technology for production of biodiesel,
having registered in 1980 the first patent of the transesterificação
process, the main process of production of biodiesel. The Federal
Government has developed efforts in the direction to improve the
production technologies, including the formation of the Brazilian
Net of Technology of Biodiesel (RBTB), constituted of 56 Brazilian
universities and institutions of research.
Strategy
Global Ag Biodiesel intends to implement the following
strategies, focusing its strong points and the exploitation of the
potential of the biodiesel market.
the fuel deliverers
The fuel deliverers, to the side of the refineries, are the only
authorized agents to carry through the mixture of biodiesel with
mineral oil diesel. The market of oil distribution diesel in Brazil
presents fort concentration, being that the five main deliverers
answer more than for a participation of market of 75%. In this way,
the Global GAC Biodiesel understands that the establishment of a
strong relationship with the fuel deliverers will go to contribute
in significant way to assure venda of biodiesel produced by the
Company. In this direction, it looks for to develop measured of
together fidelização to the main oil deliverers diesel of Brazil,
searching annual contracts of supply of biodiesel.
Develop logistic
efficiency
The
implementation of an integrated and efficient logistic net is of
basic to assure the competitiveness of its prices, especially for
the incidental costs of the freights in the activities of the Global
GAC Biodiesel. The Company is developing partnerships with road
companies to reduce the outsourcing of freights of its substances
cousins, products and by-products, being operated proper fleet for
load movement, in order to reduce operational costs. The positioning
of units of crushing of agricultural products in strategically way
also will contribute for reduction of costs, therefore we are in the
verge of three states. Moreover, by means of partnerships with
companies of the region, it intends to expand its canals of access
the agricultural inputs for production of biodiesel, as well as of
commercialization of originated by-products of the crushing of
grains.
To establish canals of
exportation of biodiesel
Global Ag Biodiesel believes
that the exportation of biodiesel will represent an important
prescription source adds. The Company understands that, currently,
the national market is more attractive of the one than the external
market in terms of prices. However, a more significant depreciation
of the Real with relation to the dollar will be able to develop the
attractiveness of the external market. Chances of exportation of
biodiesel tend to appear in the measure where the consuming polar
regions of biodiesel, mainly the Europe, if become incapable to take
care of to the increasing local demand, in virtue of increase of
costs or non-availability of substance cousin. The Global GAC
Biodiesel believes that, in a very next future we will be exporting
biodiesel to the whole world due the easiness of draining for the
port of Salvador where the adaptation of exactly is foreseen. The
European Union imposes norms very techniques demanding
characteristic particular physicist-chemistries so that biodiesel
can there be commercialized. The practical effect of these norms is
to inhibit the commercialization of biodiesel produced from
different oleaginous of canola, the main substance cousin for
biodiesel European. The Company is capable to produce biodiesel
through sunflower and cotton that takes care of to the
specifications techniques demanded by the European Union
regulations, which will allow the exportation of its production.
To promote the
development and ambient preservation
Besides producing clean and renewable fuel that allows significant
reduction in the levels of emission of pollutants comparative to
traditional fuels, Global Ag Biodiesel looks to develop its
activities observing criteria of preservation of the environment and
its natural resources. In this direction, it intends to get
environmental certification ISO 14001 for its biodiesel production
unit. In the case of the Mechanism of Clean Development, foreseen in
the Kyoto Protocol, of which Brazil is signatory, Global Ag
Biodiesel will seek to have access the carbon credits market.
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