VZCZCXRO3747
PP RUEHRG
DE RUEHBR #2171/01 3271045
ZNR UUUUU ZZH
P 231045Z NOV 07
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC PRIORITY 0500
INFO RUEHRG/AMCONSUL RECIFE 7402
RUEHRI/AMCONSUL RIO DE JANEIRO 5468
RUEHSO/AMCONSUL SAO PAULO 1205
RUCPDOC/USDOC WASHDC

UNCLAS SECTION 01 OF 04 BRASILIA 002171 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR P GREG MANUEL, BRENDA HAENDLER, WHA/EEB(FCORNEILLE) 
STATE ALSO FOR EEB/ESC/IEC, OES 
STATE PLS PASS USITC, ATTN: L.M. SCHLITT 
USDOC FOR ITC 
 
E.O. 12958: N/A 
TAGS: ENRG SENV PREL EINV ECON PGOV OTRA BR
SUBJECT: BIOFUELS IN BRAZIL 
 
REF:  STATE 133131 
 
¶1.  (SBU)  Summary:  In response to reftel request, and pursuant to 
request for extension to Oct. 19 response date, Post submits the 
following information regarding the development and adoption of 
bio-based chemical products and liquid biofuels in Brazil, including 
research and reports available, funding, investment incentives and 
tax policies, etc.  End summary. 
 
¶2. (U) 
 
---------------- 
RESEARCH/REPORTS 
---------------- 
 
With regard to reftel paragraph 6, which requested titles, authors, 
and dates of publication of significant existing academic research, 
industry reports, government publications and/or other information 
on foreign government policies relating to the development and 
adoption of bio-based chemical products and liquid biofuels 
published since 2004: 
 
     a.  The USDA's Foreign Agricultural Service (FAS) publishes 
annual reports regarding production of ethanol and biodiesel in 
Brazil each year.  2007 reports, available from FAS's Office of 
Agricultural Affairs and its Agricultural Trade Office (ATO), 
located in U.S. Embassy Brasilia and U.S. Consulate Sao Paulo, 
respectively, are: 
 
- BR7011 Brazil Biofuels Annual-Ethanol 
- BR7012 Brazil Biofuels Annual-Biodiesel 
- BR7015 Brazil Sugar Semi-Annual, which was released on Oct. 18 and 
contains ethanol statistics, as well. 
 
Contact the ATO as per information in paragraph 10 for copies via 
e-mail of these and previous reports. 
 
     b. www.biodiesel.gov.br is a GoB site with in-depth information 
on their biodiesel program, including legislation, research and 
production.  This site is available only in Portuguese. 
 
     c. http://www.portalunica.com.br/ portalunica/?Secao=referencia 
provides information on legislation and government programs 
supporting ethanol production and use.  While UNICA has an English 
language site, this section is only available in Portuguese. [Note: 
any spaces in any link referenced in this document must be deleted 
before attempting to utilize the link.  Cable format prohibits 
sending strings in excess of 55 characters without a space or return 
embedded.  End note.] 
 
 
----------- 
R&D Funding 
----------- 
 
¶3.  (U) Levels and trends of foreign government funding for R&D: 
 
-  Information on this topic obtained from the Instituto Agronomo, 
IAC, and EMBRAPA, the Empresa Brasileira de Pesquisa Agropecuaria, 
can be obtained in collaboration with the ATO. 
 
-  In addition, the Conselho Nacional de Desenvolvimento Scientifico 
e Tecnico (CNPq)/National Council for Scientific and Technical 
Development, an agency of the Brazilian Ministry of Science and 
Technology charged with scientific and technical research and the 
development of human resources, has recently announced $22 million 
Brazilian reais (approximately US$12.25 million) investment over the 
next few years for research in biodiesel and ethanol, through three 
sectoral funds:  Petroleum and Natural Gas (CT-Petro), Agrobusiness 
(CT-Agro) and Biotechnology (CT-Biotecnologia).  This R&D investment 
will be primarily designated for the center-west, north and 
northeast regions of Brazil, which have historically been 
underinvested for biofuels R&D. 
Sources (in Portuguese):  http://www.biodieselbr.com/noticias/ 
energia/r1-r22-milhoes-pesquisa- biodiesel-etanol-23-10-07.htm and 
CNPq links, http://www.cnpq.br/editais/ct/ 2007/031.htm and 
www.cnpq.br/editais/ct/2007/039.htm. 
 
-------------------------------------- 
Investment Incentives and Tax Policies 
-------------------------------------- 
 
¶4.  (SBU) Investment incentives and tax policies to encourage 
development or adoption of biofuels: 
 
BRASILIA 00002171  002 OF 004 
 
 
 
The FAS has a report designated for internal USG use only:  BR5016, 
Fuel Taxes in Brazil.  This report can also be obtained from the 
ATO. 
 
------------------------- 
Mandatory use regulations 
------------------------- 
 
¶5.  (U)  Mandatory use regulations: 
 
BR7011 and BR7012 reports, mentioned in paragraph 2, contain this 
information. 
 
------------------------------- 
Agricultural Feedstock Programs 
------------------------------- 
 
¶6.  (U)  Information had been requested from FAPESP, IAC (Instituto 
Agronomico de Campinas, State of Sao Paulo), and EMBRAPA but has not 
been received as of Nov. 19, 2007. 
 
-------------- 
Trade Policies 
-------------- 
 
¶7.  (SBU) Trade policies, including tariffs and preferential trade 
agreements: 
 
The Brazilian Ministry of External Relations (MRE) has been very 
active, particularly in the past two years, in signing Memoranda of 
Understanding (MOUs) or other agreements on biofuels with a number 
of countries, including the United States.  In addition, there has 
been significant private sector interest both from within and 
outside of Brazil in partnering with the GOB and Brazilian private 
industry.  Following are the countries with which the MRE has 
published its signed agreements with regard to biofuels or renewable 
energy on its website (http://www.mre.gov.br): 
 
Austria (Sep. 19, 2005) 
Belize (Sept. 13, 2005) 
Benin (Aug. 15, 2007) 
Chile (Apr. 26, 2007) 
Costa Rica (Dec. 13, 2005) 
Ecuador (April 4, 2007 - several) 
El Salvador (Sept. 13, 2005 and June 9, 2006 - Ethanol and  Castor) 
France (May 25, 2006) 
Germany (June 15, 2005) 
Guatemala (Sept. 12, 2005) 
Guyana (Sept. 12, 2005) 
Haiti (May 23, 2006) 
Honduras (Aug. 7, 2007) 
India (Apr. 8, 2002) 
Jamaica (May 16, 2005/Feb. 15, 2007) 
Mexico (Aug. 6, 2007) 
Nicaragua (Aug. 8, 2007) 
Panama (Sept. 13, 2005/Aug. 10, 2007) 
Paraguay (May 21, 2007) 
Senegal (May 16, 2007) 
Slovenia (July 29, 1998) 
South Korea (Nov. 16, 2004 (between Ministries of Mines and Energy) 
United States of America (Mar. 9, 2007) 
Uruguay (Feb. 26, 2007) 
 
¶8.  (SBU) Other agreements and "Plans of Action" that have more 
broadly encompassed "science and technology" cooperation-a few 
specifically mentioning renewable energy and biotechnology, some 
less specific or establishing bilateral consultative 
mechanisms--have also been signed with the following nations: 
 
China (Mar. 25, 1982, with several adjustments since) 
Cuba (March 18, 1987 and June 27, 1995, the latter  specifically 
mentioning cellulosic bagasse) 
European Union (Jan. 19, 2004; July 5, 2007) 
Ghana (July 10, 2006) - Established EMBRAPA regional office 
Hungary (July 20, 1986/Nov. 17 and 26, 1987) 
Iraq (Aug. 26, 1981) 
Israel (Feb. 5, 1973/May 29, 2005) 
Italy (Feb. 12, 1997) 
Ivory Coast (Oct. 27, 1972 and May 12, 1987) 
Japan (May 25, 1984) 
Kuwait (May 8, 2002) 
Lebanon (Feb. 17, 2004) 
Liberia (Nov. 21, 1977) 
 
BRASILIA 00002171  003 OF 004 
 
 
Libya (June 30, 1978) 
Malaysia (Apr. 26, 1996) 
Mali (Oct. 7, 1981) 
Morocco (April 10, 1984) 
New Zealand (Nov. 4, 1986) 
Pakistan (Oct. 1, 1988) 
Peru (Nov. 9, 2006)  Note:  two agreements, one  specifically on 
mining and energy and one on  biotechnology 
Tunisia (Mar. 13, 2002) 
United Arab Emirates (Oct. 11, 1988) 
United Kingdom and Northern Ireland (Mar. 7, 2006) 
 
¶9.  (SBU)  As per paragraph 7 of reftel, following is a list of 
leading firms and organizations with significant industrial 
biotechnology production or R&D activities in liquid biofuels and/or 
bio-based chemicals, along with contact information (e-mail and 
website).  For specific persons to contact at each organization, 
please consult the USDA's ATO as per para. 10.  (Note that some 
interlocutors at these organizations may only speak Portuguese or 
very basic English, and many of the websites are only in Portuguese, 
as well.) 
 
ABIOVE - Assoc. Bras. Ind. de Oleos Vegetais 
Av. Vereador Jose Diniz 3707 - conj. 73 
Sao Paulo SP 
Tel.  55 11 5536-0733 
Fax:  55 11 5536-9816 
abiove@abiove.com.br 
www.abiove.com.br 
 
BRASIL Ecodiesel 
End.Praia de Botafogo, 501 S/701 b 
Rio de Janeiro RJ 
55 21 2546-5018 
55 21 2546-5040 
ourique@brasilecodiesel.com.br 
www.brasilecodiesel.com.br 
 
COPERSUCAR 
Av. Paulista, 287 - 1o, 2o e 3o Andares 
Sao Paulo SP 
55 11 6618-8824 
55 11 6618-8570 
amsetten@copersucar.com.br 
www.copersucar.com.br 
 
COSAN S/A Industria e Comercio 
Av. Juscelino Kubitschek, 1726 - 6o Andar 
Sao Paulo SP 
55 11 3897 9797 
55 11 3897 9787 
cosansp@.uol.com.br 
www.cosan.com.br 
 
CRYSTALSEV Comercio e Representacoes Ltda. 
Av. Antonio  Diederichsen, 400 - 18o Andar 
Ribeirao Preto SP 
55 16 2101-4400 
55 16 3623-0300 
damaris@crystalsev.com.br 
www.crystalsev.com.br 
 
CTC Centro de Tecnolgia Canavieira 
Fazenda Santo Antonio s/no CP 162 
Piracicaba SP 
55 19 3429-8199 
55 19 3429-8135 
william@ctc.com.br 
www.ctc.com.br 
 
DEDINI S/A - Industria de Base 
Rod.Rio Claro-Piracicaba Km 26,3 
Piracicaba SP 
55 19 3403-3006 
55 19 3421-3642 
jose.oliverio@dedini.com.br 
www.dedini.com.br 
 
GRANOL Ind. Com. E Exportacao  S/A 
Rua Carmo do Rio Verde, 241 - 6o Andar 
Sao Paulo SP 
55 11 2162-4400 
55 11 2162-4400 
granol@granol.com.br 
 
BRASILIA 00002171  004 OF 004 
 
 
www.granol.com.br 
 
GRUPO Agropalma 
Rodovia PA 150, Km 74 
Tailandia  PA 
55 91 4009-8199 
55 91 4009-8066 
porfirio@agropalma.com.br 
www.agropalma.com.br 
 
LOUIS Dreyfus Commodities Brasil S/A 
Av. Brigadeiro Faria Lima, 1355 13o  andar 
Sao Paulo SP 
55 11 3039-6893 
55 11 3814-3235 
fabio.morel@ldcommodities.com 
www.ldcommodities.com 
 
UNICA - Uniao da Agr. Canavieira de SP 
Av. Brig. Faria Lima, 2179 - 9 and. 
Sao Paulo SP 
55 11 3812-2100 
55 11 3812-1416 
padua@unica.com.br 
www.unica.com.br 
 
¶10.  (SBU) As referenced above, ITC may contact the ATO (Director: 
Morgan Perkins) in U.S. Consulate Sao Paulo for additional 
information on many of the reference points above; e-mail: 
morgan.perkins@usda.gov and tel. 55 11 5186-7188.  Richard Driscoll, 
Economic, Science, Technology and Health (ESTH) Counselor in U.S. 
Embassy Brasilia, may be of assistance on the science, technology 
and environmental-related aspects of biofuels.  E-mail: 
driscollrj@state.gov; tel. 55 61 3312-7401.  Economic officer and 
Mission Brazil's biofuels coordinator Gabrielle Sarrano in U.S. 
Embassy Brasilia can help coordinate with ATO, ESTH, or others for 
any additional information needed; sarranogh@state.gov or tel. 55 61 
3312-7154. 
 
SOBEL