Page 66 - InvestmentGuideBrasilEng

SOLID WASTE

The rapid acceleration in Brazil’s middle class Brazil has emerged as an enormous market
population and related growth in the population for machinery and equipment used in recycling. As
living in Brazil’s cities means the total amount of a result of the change in legislation in 2010, new
garbage produced by urban residents has also opportunities for significant investments in dif-
grown. For Brazil, the treatment of solid waste is a ferent segments of the waste value chain in Brazil PETROBRAS
priority in order to protect public health, minimize have been created. Brazil will require investments
environmental impact and increase the recovery of more than US$10 billion over the next decade BUSINESS PLAN 2013 - 2017
of waste through recycling. According to the Bra- to meet demand for infrastructure in this sector.
zilian Association of Public Cleaning Services and The sheer size of the Brazilian consumer market Oil & Gas
Waste Management Companies (ABRELPE), Bra- – which grew by 40 million over the past decade The largest corporate player in Brazil’s oil and gas
zil’s urban residents generated an average of over – and future growth prospects in the consumer sector is Petrobras, a state-owned integrated oil,
160,000 tons of solid waste (garbage) each day in population are the solid fundamentals driving in- As the global population continues to grow, so does gas and biofuels company. Petrobras carries out
2012, for a total of almost 63 million tons of urban vestment in Brazil’s waste destination market. the demand for crude oil, which reached 88 mil- a wide range of activities in the sector, including
solid waste in 2012. This was an increase of 1.3% Current market needs include, for example, lion barrels of oil per day in 2012 and is expected to exploration, research, refining, transportation
from 2011. This rate outpaced growth in the urban product design for waste minimization and pre- grow to almost 100 million by 2020, according to and supply.
population over the same period (0.9%). vention of waste generation; anaerobic digestion the Organization of Petroleum Exporting Countries Petrobras is one of the largest integrated oil
Also according to ABRALPE, in 2012 just over systems; plasma arc gasification technologies; (OPEC) World Oil Outlook 2012. Brazil’s oil and gas company among emerging markets. Fully inte-
half of all urban waste was organic matter, fol- automatic mechanical sorting facilities for recy- resources are a vital long-term source of supply to grated across the production and supply chains,
lowed by 13.5% plastic, 13.1% paper and cardboard, clables; and program design for integrated mu- help meet expanding energy demand on both the including exploration, downstream, distribution,
2.9% metals and 2.4% glass. nicipal waste management strategies. domestic and export markets. Brazil is set to be- gas and power, petrochemicals and biofuels.
In 2012, 37.4% of all municipal solid waste was Investment in this sector is a priority to meet come one of the largest suppliers of conventional Petrobras is the largest corporate investor in
incinerated, with 21.7% going to landfills and 13.3% both existing and future demand. For recycling oil in developing country regions among non-OPEC Brazil, with a US$235 billion capital expenditure
to open-air dumps. While Brazil has good waste activities, investment should be focused on lo- countries, according to OPEC. program over the next five years from a company
collection coverage (over 90% of all solid urban gistics and infrastructure for separation and Estimates of reserves in the pre-salt area range with $120-130 billion in market capitalization, pri-
waste generated), a large segment of disposal of treatment of sensitive materials such as batter- from 50 to 80 billion barrels of high-quality oil, ac- marily for exploration and production activities.
this waste (approximately 40%) was deemed in- ies and electronic waste. In the area of waste cording to the National Agency of Petroleum, Nat- This creates opportunities for suppliers of goods
adequate in 2012. Brazil is taking important steps treatment, investment in new treatment facility ural Gas and Biofuels (ANP) and market analysts and services from around the globe. Petrobras also
to increase sustainable waste management, capacity and capabilities will be prioritized, in- around the world. has the largest downstream investment program in
which include closing municipal open-air dumps cluding conversion of open dumps into sanitary To date, 15.8 billion recoverable barrels of oil Latin America, including refineries, fleet expansion
that pose health and environment risks. For ex- landfills with gas capture and combustion and have been found in the Lula and Sapinhoa com- and logistics, as well as investment in oil quality
ample, in June 2012, the largest open-air dump in other upgrades in waste-to-energy facilities, if mercial pre-salt fields alone. According to Petro- to ensure lower sulfur content. In order to fulfill its
Brazil – called Jardim Gramacho – was closed to the opportunity is environmentally, technically bras, the state-owned oil and gas operator, current business plan, Petrobras will demand the following
make way for a modern recycling plant. and economically feasible. production of the pre-salt layer is about 300,000 equipments and goods in the next five years.
In 2010 Brazil adopted the National Policy on boe/day, or about 15% of total Brazilian production.
Solid Waste (PNRS) as part of the Federal Basic Growth in production, recent attractive reserve
discoveries and the possibility of unconventional oil
Sanitation Act, which provides for the collection, production has led to modifications in regulations NON-CONVENTIONAL OIL
treatment and disposal of household and indus-
trial waste. Under the PNRS, reusable and recy- that encourage direct investment in the market, AND GAS
clable municipal solid waste is recognized as a increased research and development and foreign
good that can be traded and treated, generating participation in production and the supply chain.
opportunities for cleantech industries and com- Developed under a state monopoly by Petro- Although very much in the early stages, the gov-
panies specializing in environmental solutions. bras and subsequently liberalized in 1997, Brazil’s ernment intends to develop Brazil’s onshore,
A hallmark of the PNRS is the principle of extend- oil and gas sector – which encompasses both non-conventional energy resources, such as shale
ed producer responsibility. Brazil now implements onshore and offshore oil and gas fields – has un- gas. Brazil has the world’s 10th-largest shale gas
a policy of returning a product to manufacturers, dergone tremendous change in recent years. Bra- reserves, with an estimated 245 trillion cubic feet
importers, distributors and retailers for recycling or zil is currently the 9th-largest oil producer in the according to the US Energy Information Associa-
appropriate disposal once the product reaches the world, the 5th-largest consumer of oil and the tion (EIA). Shale gas is not yet produced in Brazil,
end of its useful life cycle. For now this principle ap- 15th-largest holder of proven oil reserves. but six blocks will be licensed 2013.
plies to electronic waste, medicines, tires, batteries, The government aims for Brazil to be the More information on oil and gas bidding
pesticide containers, lube oil and their containers, 5th-largest producer by 2020, with output of 6.4 rounds in Brazil can be found at:
mercury lamps and packaging in general. million barrels of oil equivalent per day. http://www.brasil-rounds.gov.br/index_e.asp
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