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Second generation ethanol production
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Renewable Resources and Alternative Energy
Business Model Description
Scale-up generation of second generation ethanol (through facilities that reuse residue from production of first generation ethanol) for consumer markets
Reduce deforestation and CO2 emissions while contributing to energy security
Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
15% - 20% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Short Term (0–5 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
Brazil produced over 26% of the world's total ethanol used as fuel, which is 7 billion gallons (6)
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
- 1) Bertelsmann Stiftung, 2019, https://dashboards.sdgindex.org/#/BRA 2) BNDES, 2018, https://web.bndes.gov.br/bib/jspui/bitstream/1408/16040/3/PRLiv214078_Visao_2035_compl_P.pdf 3) Empresa de Pesquisa Energética, 2019, http://epe.gov.br/sites-pt/publicacoes-dados-abertos/publicacoes/PublicacoesArquivos/publicacao-165/topico-173/PNE%202030%20-%20Proje%C3%A7%C3%B5es.pdf 4) Empresa de Pesquisa Energética, 2019, http://epe.gov.br/pt/publicacoes-dados-abertos/publicacoes/Plano-Nacional-de-Energia-PNE-2030 5) APEX< 2019, https://portal.apexbrasil.com.br/setores-prioritarios/
- 6) U.S. Department of Energy, 2019, https://afdc.energy.gov/data/10331 7) Sugar Cane, 2019, https://sugarcane.org/ethanol/ 8) Journal of Bioresource Technology, 2011, https://www.sciencedirect.com/science/article/pii/S0960852411009254 9) Raízen, 2019, https://www.raizen.com.br/en/energy-future/renewable-energy-technology/second-generation-ethanol 10) BNDES, 2018, https://web.bndes.gov.br/bib/jspui/bitstream/1408/16040/3/PRLiv214078_Visao_2035_compl_P.pdf 11) Journal of Land Use Science, 2017, https://www.tandfonline.com/doi/full/10.1080/1747423X.2017.1291766 12) Globo, 2019, https://oglobo.globo.com/economia/bolsonaro-defende-liberacao-da-venda-direta-de-etanol-das-usinas-para-postos-de-combustiveis-23660423 13) Veja, 2018, https://veja.abril.com.br/blog/impacto/quais-sao-as-propostas-de-bolsonaro-para-o-meio-ambiente/ 14) Brazilian Journal of Microbiology, 2016, https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5156502/ 15) Bio Future Platform, 2017, http://biofutureplatform.org/wp-content/uploads/2018/06/RenovaBio-Mechanism-Policy-and-Instruments.pdf 16) BizLatin Hub, 2019, https://www.bizlatinhub.com/brazilian-biofuel-feedstock-industries/ 17) International Consortium on Applied Bioeconomy Research, 2011, https://www.alice.cnptia.embrapa.br/bitstream/doc/904882/1/ThebrazilianethanolTORRESMARTHA.pdf 18) Government of São Paulo, 2004, https://web.archive.org/web/20080528051443/http://www.eners.ch/plateforme/medias/macedo_2004.pdf 19) Nova Cana, 2019, https://www.novacana.com/usina/distribuicao-usinas-etanol-brasil 20) Raizen, 2021. https://www.raizen.com.br/en/our-business/ethanol 21) SDG Tracker, 2021. https://sdg-tracker.org/ 22) Global Gender and Climate Alliance & UNDP, 2016. https://www.undp.org/content/dam/undp/library/gender/Gender%20and%20Environment/UNDP%20Gender%20and%20Sustainable%20Energy%20Policy%20Brief%204-WEB.pdf