1. Petrobras
Bio-fuels Technology
Development
Goldman Sachs
Alternative Energy Conference
New York - May 2, 2006
Ricardo Castello Branco
E-mail: ricardocb@petrobras.com.br

2. Petrobras Research and Development Center
CENPES
Since 1963
Total area: 122 thousand m2
137 Laboratories
30 Pilot plants
Ongoing expansion: plus 140 thousand m2
1,560 employees
12 Technological Programs
501 R&D projects

3. Petrobras: a technology-based organization

4. Petrobras: a technology-based organization
OTC OTC
1992 2001

5. Petrobras: a technology-based organization
Ratio (%)
1600 US$ Million (2005)
1400 5
583
1200
4
1000
376
800 3
300
272
600 246
205 2
400
1
200
0 0
2001 2002 2003 2004 2005 2006
R&D budget
Ratio R&D Expenditures / Net Revenue

6. Petrobras R&D budget distribution
2006 – R&D Expenditure
Capital Investments 2006-2010 (US$ million)
E&P E&P 280.37 48%
16%
Downstream 94.04 16%
12% Downstream
49% Gas, Power & Renewables 86.50 15%
Gas, Power & Environment 23.44 4%
Renewables
Others 98.65 17%
23% Others
583.00
17%
E&P
4%
48% Dow nstream
Gas, Pow er & Renew ables
15% Environment
Others
16%
R&D Expenditure - 2006

7. PROGER
Petrobras Renewable Energy Technological Program
Budget: US$ 32 million
66 R&D projects
6 Lines of Research
Bio-fuels
Biomass
Wind
Solar PV
Solar Thermal
Alternative Renewables

8. PROGER
Petrobras Renewable Energy Technological Program
R&D Projects on Bio-fuels
Biodiesel
Vegetable/animal oil hydrogenation
Non-conventional bioethanol
Lignocellulosic bioethanol
Castor oil seed cake bioethanol
Synthetic bio-fuel (BTL)

9. Biodiesel
Brazilian seeds
Castor oil seed Sunflower Soy Palm Cotton
Crop yield (kg/ha)
1,500 1,500 3,000 20,000 3,000
Oil contents
47% 42% 18% 20% 15%
Oil yield (kg/ha)
705 630 540 4,000 450
2005 Production in Brazil (m3/yr)
90,000 23,000 5,600,000 151,000 315,000

10. Biodiesel
Petrobras proprietary processes
Glycerin
+
Cake (fertilizer; ethanol production)
Single-step
process Seeds
Seeds E ster
+
Alcohol
+
Catalyst
Biodiesel
Se
ed
s
e r
Alcohol Est
Plantation Extraction +
Catalyst
Two-step
Raw Oil
process
Fertilizer
Glycerin
Cattle feed

11. Biodiesel
Two-step process
Raw materials
Castor oil
Ethanol / methanol
Successful lab experiments (2004)
Successful pilot-plant tests (2004)
Demonstration commercial-scale batch
plant on stream: since 1stQ 2005
Capacity: 200 t/yr
Upgrade to continuous process due
4thQ 2006 (4,000 t/yr)
1st high capacity design due 1stQ 2008

12. Biodiesel
Single-step process
Innovative single-step approach
Raw materials
Castor oil seed
Ethanol
Successful lab experiments (2004)
Successful pilot-plant tests (2005)
Demonstration commercial-scale plant
on stream: 2nd Q 2006
Capacity: 14,000 t/yr
Bioethanol production pilot-plant under
design (start-up 4thQ 2006)
1st high capacity design due 1st Q 2008

13. Vegetable/animal oil hydrogenation
100 liters
soy bean oil
+ + +
2,1 Nm3
fuel gas
96 liters 2,2 Nm3 8,8 liters
propane water
diesel oil

14. Vegetable/animal oil hydrogenation
Two patents issued
Successful pilot-plant tests
Flexibility: low sensitivity to oil type
(any vegetable oil / animal oil)
Diesel quality improvement (increase
cetane number)
Successful full-scale industrial test
Good product yield
Proven economic attractiveness
Much simpler logistics than biodiesel’s
First commercial application currently
under assessment

15. Lignocellulosic bioethanol
Raw material: sugar cane bagasse
Proprietary process
Successful ongoing bench-scale
experiments
Patent issued
End of tests: 4thQ 2006
Pilot plant start-up: 1sQ 2008
Demonstration plant start-up: 3rdQ 2010

16. Synthetic bio-fuel (BTL)
GTL small pilot-plant on stream
since 1st Q 2004
High yield FT Catalysts patented
(2004-2005)
Combinatorial Catalysis Unit on
stream since 4th Q 2005
Start-up cold prototype unit for fluid
dynamic tests: 4th Q 2006
Start-up GTL 1 bpd pilot plant:
4th Q 2007
Start-up integrated biomass
gasification pilot plant: 2nd Q 2008
Start-up 300 bpd demonstration
plant: 4th Q 2011

17. Bioenergy Complex
Source: Cortez (2005)
CO2
CO2
Sugarcane
C Bagasse
Co-generation
Co-
O
2
Bioethanol Sugar Power

18. Climate Change
Building a Better Future
Greenhouse gas emissions are changing the climate on Earth.
Given its deep commitment to environment responsibility,
Petrobras has worked hard to reduce such emissions.

19. Biodiesel: a reality