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BIODIESEL INITIATIVE AT MEXICO’S ELECTRICAL RESEARCH INSTITUTE

Jorge M. HuacuzNon-Conventional Energy Unit

IIE

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Mexico in the World Context

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USABriefing on Mexico

Central America

Gulf of MexicoPacific Ocean

Total land area: ~2 M km2

Population: 103 M (<20% rural)

Official language: Spanish

Main energy source: oil (~90%)

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Energy in Rural Mexico

• Large population dispersion• Subsistence farming among peasants• Low energy use in agriculture (3% of total national)

Diesel fuel: 68.8Electricity: 24.7LP Gas: 6.5

• High firewood consumption in domestic sectorFirewood: 68.80%Gasoline: 10.43LP Gas: 9.98Diesel fuel: 6.33Electricity: 2.53Kerosene: 1.58

• Rampant deforestation

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IIE’s Biodiesel Initiative Objectives

To promote energy security of rural Mexico by means of the local production of

accessible and affordable fuels, while at the same time opening new business

opportunities for Mexican farmers, fostering a cleaner environment and promoting

sustainable development.

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Rationale for IIE’s Biodiesel Initiative

• Increasing availability of fuels in rural areas• Extending service hours of diesel-powered rural

electrification mini-grids• Opening new business opportunities for peasants• Protecting the environment• Reclaiming degraded land• Shifting energy subsidies• Facilitating local processing of agricultural

products

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Feedstock Options

• Jatropha Curcas • Palm Oil

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Oil Palm Distribution in Mexico

Current Status:•Commercially harvested•Over 3,000 Ha in production•Over 10,000 Tons of oil per year•Basically small rural producers•Volatile current oil market

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J. Curcas Distribution in Mexico

Source: Jorge Martínez, CEPROBI-IPN

Current Status:

•Not commercially produced

•Grows wild in several regions

•Non-toxic variety used for medical purposes/cattle feed

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J. Curcas World DistributionJ. Curcas World Distribution

Centro de Origen

Toxic J. CurcasToxic J. CurcasSource: Jorge Martínez, CEPROBI-IPN

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Target Biodiesel Markets

Current:

• Local rural applications (mini-grids, tractors, trucks, water pumps, cooking, space heating)

• Metropolitan Mexico city transport system

Future:

• Intercity bus lines

• Export to Europe/US

• Hybrid diesel cars

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Prospects for biodiesel:•Introduced to lower transit emissions (mainly Sulfur and CO2)•System coverage to be expanded (currently 100 units)•Heavy diesel fuel consumer (4,600 Tons/year)

•Already blending-in imported biodiesel in small quantities•50% of current palm oil production

enough to cover 100% of Metrobus fuel needs•Biodiesel nearly competitive with petrodiesel

The Metrobus System

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The Jatropha Route

• Daily Metrobus requirements: 14,000 lts.

• Required cultivated land area: 100 Ha

• Projected levelized production costs: 49 US¢/lt

• Competitive with petrodiesel

• Uncertainties in harvesting costs

• Uncertainties in processing O&M costs

• By-products and environmental benefits can increase competitiveness

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Seeds

Oil extraction

Raw oil

Refining and chemical treatment

Raw glycerol

Refining

Pure glycerol

Chemical industry

Biodiesel

Motor fuel

Residue cake

Cattle feed, fertilizer

Fuente: http://usuarios.lycos.es/biodieseltr/hobbies4.html

By-products from J Curcas

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Current Cost Trends

Cited in: BIOFUELS FOR TRANSPORTATION. World Watch Institute, GTZ, BMELV, 2006.

Our study

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Future Cost Trends

Our target

Cited in: BIOFUELS FOR TRANSPORTATION. World Watch Institute, GTZ, BMELV, 2006.

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Where the Initiative Stands

• Status: launched

• Stakeholders:Electrical Research Institute (IIE)Agriculture research unit (CEPROBI-IPN)Oil palm producersFarmers for Jatropha productionPotential investors

• Technology market under assessment

• Pilot Jatropha plantation at planning stage

• Business plan under development

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CEPROBI-IPN Experimental Plantation

March 2005 September 2005

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Electrical Research Institute

Thank you.....Thank you.....