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FEASIBILITY STUDY OF BIOFUELS AND

FOOD PRODUCTION IN THE REPUBLIC

OF MOZAMBIQUE

May, 2013

Summary

Project structure

Crops analyzed

Zoning results

Field Survey Proposed Projects

Next Steps

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PROJECT STRUCTURE

FGV methodology combines the

Brazilian experience in developing

sustainable bioenergy and food

projects

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Tropic of Cancer

Tropic of Capricorn

Equator

(tons oil equivalent)

Elaboration: GV Agro Source: BPStatistical Review of World Energy

Tropical Belt: Favorable for biofuels and food production. Tropical Belt: The majority of countries that face fuel and food shortages are located in this specific region.

Motivation for bioenergy and food projects

in the Tropical Belt

Technical Cooperation Agreement Between:

Technical cooperation agreement between the European Union and Brazil, for a feasibility study to produce biofuel and food in Mozambique.

The projects were financed by the following entities:

Context

Environmental

Agricultural

Cooperation Agreement

Results: 12 countries have received the feasibility studies of bioenergy project development: ethanol, biodiesel, electricity, steam and food projects.

Brazil-USA technical cooperation agreement to develop bioenergy in countries in the tropical belt.

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FGV methodology combines the Brazilian experience in developing sustainable bioenergy and food projects.

Feasibility study

Executive Project & Road Show

Implementation Operation

Phase I Phase II

Methodology

Phase III Phase IV

Crop Plants Aptitude (food &

bioenergy) Recommendation

Production Capacity

Zones:

• Agroclimatic • Edaphic • Environmental & • Social

Results

• Investments • Regulatory framework • Infrastructure • Financial & Environmental questions

Phase II

Business Model:

• Raw material, crop inputs • Clusters • Supply and Demand • Constraints and opportunities

Methodology

Phase I – Feasibility Analysis

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Phase IV Phase III

SUB-PROJECTS • R&D&I (technology transfer,

research, development and innovation)

• Agriculture • Industrial • Social • Finance • Environment • Regulatory framework & Legal • Market Analysis • Risk Analysis

IMPLEMENTATION • Management; • Business Plan - technology

Package & sustainability • F.I.P:

o Strategic partnership o Pension Funds o Stakeholders o Financial Market o CSR Banks; o Local Governments

OPERATION • S.P.C.; • Leadership, Knowledge

and Accountability • Capacity building

development; • Designing of contracts :

o Sales of product o purchase of raw materials

and supplies. o corporate and cooperative

structuring

Executive Project

Phase II – Executive Project

Methodology

Guatemala

El Salvador Honduras

Haiti Dominican Republic

St. Kitts & Nevis

Senegal

Guinea

Guinea-Bissau

Liberia

Mozambique Zambia

Tanzania

Argentina

Angola

Papua New Guinea

Ongoing

Under technical and commercial negotiation

Current Status

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Over 240 million hectare studied

Over 25,000 km traveled on field survey

Information Generated

Over 10,000 georeferenced photos taken

Over 2,000 points of interest gathered

Up to 14 kinds of crops

36 expeditions since 2007

Information Generated

Over 100 local meetings attended

About 2,400 soils samples gathered

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CROPS ANALYZED

CROPS ANALYZED

Bioenergy Food

Sugarcane

Castor Beans

Napier grass

Eucalyptus

Jatropha curcas

Sunflower

African palm

Cotton

Corn Rice

Soybean Manioc

Peanut Beans

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ZONING RESULTS

Weather Stations

Mathematical Models

Climatic Parameters for

Each Crop

Agroclimatic Zoning

Map Algebra

Soil Data

Declivity Data

Soil Capacity

Wet lands

Protected areas

Environmental Zoning

Field Work

Aptitude Maps

Zoning Zoning Methodology

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Agroclimatic Zoning Edaphic Zoning

Environmental Zoning

Precipitation

Avarage temperature

Water deficit

Evapotranspiration

Wet Lands

Soils Relief

Protected areas

Edaphoclimatic Zoning

Example - Zoning

Edaphoclimatic Zoning

Example - Zoning

Forest area Family farming area Agribusiness area

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Example - Zoning

Edaphoclimatic Zoning

Potential areas validation

Degraded areas

Suitable soils

Rural diagnoses

Infrastructure analysis

Use and coverage

Relief

Existing projects

Existing crops

Cultivation forms

Field evidence

Zoning Results For each crop

Agroclimatic Zoning

Edaphic Zoning

Agricultural Zoning

Mozambique

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Results of agroclimatic zoning

Castor Beans

Sugarcane Elephant Grass African Pam

Cotton Sunflower Soybean Eucalyptus

Jatropha Beans Manioc Rice Corn Peanut

Zoning Results

Sugarcane

Zoning Results

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African Pam Africana

Zoning Results

Elephant Grass

Zoning Results

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Cotton

Zoning Results

Sunflower

Zoning Results

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Soybean

Zoning Results

Eucalyptus

Zoning Results

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Castor Beans

Zoning Results

Beans

Zoning Results

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Jatropha

Zoning Results

Manioc

Zoning Results

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Rice

Zoning Results

Corn

Zoning Results

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Peanut

Zoning Results

Results of edaphic zoning

Sugarcane Elephant Grass African Pam

Cotton Sunflower Soybean Eucalyptus

Castor Beans Jatropha Beans Manioc Rice Corn Peanut

Zoning Results

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Sugarcane

Zoning Results

African Pama Africana

Zoning Results

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Elephant Grass

Zoning Results

Cotton

Zoning Results

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Sunflower

Zoning Results

Soybean

Zoning Results

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Eucalyptus

Zoning Results

Castor Beans

Zoning Results

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Beans

Zoning Results

Jatropha

Zoning Results

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Manioc

Zoning Results

Rice

Zoning Results

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Corn

Zoning Results

Peanut

Zoning Results

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Results of agricultural zoning

Sugarcane Elephant Grass African Pam Cotton Sunflower Soybean Eucalyptus

Castor Beans Jatropha Beans Manioc Rice Corn Peanut

Zoning Results

Sugarcane

Zoning Results

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African Pam

Zoning Results

Elephant Grass

Zoning Results

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Cotton

Zoning Results

Sunflower

Zoning Results

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Soybean

Zoning Results

Eucalyptus

Zoning Results

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Castor Beans

Zoning Results

Beans

Zoning Results

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Jatropha

Zoning Results

Manioc

Zoning Results

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Rice

Zoning Results

Corn

Zoning Results

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Peanut

Zoning Results

FIELD SURVEY

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Field Survey

Real time navigation;

Georeferenced photos;

Analyzes performed:

• Land use;

• Agrarian structure;

• Socioeconomic data gathering;

• Conditions of logistics;

• Soils samples gathering;

• Interviews with local stakeholders;

• Observations of environmental aspects.

Gathering of points of interest

Field Survey

Distance traveled: : 2.578 km;

165 points georeferenced.

Mozambique

Mozambique

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Field Survey

Visit the to productive areas Land use Logistics Technical meetings

Interviews Socioeconomics aspects Environmental aspects Characterization of small-scale agriculture

Collection of soil samples Energy and agriculture gaps

PROPOSED PROJECTS

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PROPOSED PROJECTS

Mozambique

Sugarcane

PROPOSED PROJECTS

Elephant Grass

Project: Sugarcane (Sugar & Ethanol) Region: Zambézia. Area: 22.949 ha; Process : 1,5 million tons per year; Ethanol production: 130 million liters per year; Sugar production: 74 thousand tons per year. CAPEX (agricultural & industrial): USD 471,4 million; IIR: 21%

Project: Soybean Region: Cabo Delgado. Area: 66.000 ha; Crush: 37.620 tons per year of soybean oil; ; 156.420 tons per year of soybean meal.. CAPEX (agricultural & industrial): USD 120,0 million; IIR: 28%

Soy bean

Project: Biomass (Elephant grass) Region: Nampula e Zambézia. Area: 2.000 ha; Production: 72.000 MWh/year; CAPEX (agricultural & industrial): USD 25 million; IIR: 18%

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NEXT STEPS

Next Steps

• R&D (knowledge transfer & technology);

• Agriculture;

• Industrial;

• Logistics;

• Social;

• Financial;

• Environmental;

• Legal & Regulatory;

• Marketing;

• Risk analysis.

EXECUTIVE PROJECT

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www.fgv.br/fgvprojetos

+55 21 3799 6051

THANK YOU

Coordinator: Cleber Lima Guarany – cleber.guarany@fgv.br

General Supervisor : Dr. Roberto Rodrigues – gvagro@fgv.br

Technical Coordinator: Giuliano Senatore – giuliano.senatore@fgv.br