Amazon Day: Bioeconomy and sustainable palm cultivation drive development in the region

Business model could generate US$ 284 billion annually in Brazil
05 September, 2023
Collaborator in BBF BioTech

Amazon Day, celebrated on Tuesday, September 5, is an opportunity to highlight the importance of this biome, which is home to the world's largest rainforest. Milton Steagall, CEO of Grupo BBF (Brasil BioFuels), which operates in five states in the North region, emphasizes the need to reflect on sustainable development in the region as a way of preserving the forest and improving the quality of life of the Amazonians, who number more than 29 million people.

The bioeconomy, a model of industrial production based on biological resources that seeks to replace fossil resources, is pointed out by Steagall as the key to this goal. The Brazilian Bioinnovation Association (BBI) estimates that the bioeconomy could generate US$ 284 billion annually in Brazil, promoting environmental preservation, improving quality of life and boosting socio-economic development.

One example of this model is the sustainable cultivation of oil palm. This cultivation contributes to the recovery of the biome, replaces fossil raw materials with renewable resources and generates jobs and income locally. "From palm oil we can talk about the bioeconomy within the electricity, chemical and biofuel sectors, as well as agribusiness. Our country has the potential to be a global leader in palm oil production. The sustainable development of the Amazon region is urgent. We need to find ways to keep the forest standing, but also provide jobs, income and wealth for the population," says the executive.

Company adopts verticalized business model

Grupo BBF currently cultivates 75,000 hectares of oil palm in the states of Pará and Roraima, with the capacity to produce more than 200,000 tons of oil annually, according to the company, which adopts a vertical business model, ranging from palm cultivation to the production of biofuels, biotechnology and renewable electricity. This results in the generation of approximately 7,000 direct jobs and 21,000 indirect jobs, as well as support for more than 400 family farmers in Pará.

In the energy sector, Grupo BBF operates thermoelectric plants with a total capacity of 238 MW, supplying energy to remote communities in the northern region. Of the 25 plants in operation, 86.8 MW are powered by renewable biofuels (biodiesel and vegetable oil) and biomass from oil palm. The company supplies renewable energy to more than 140,000 inhabitants of isolated areas in the Amazon.

Steagall highlights the sustainable cultivation of oil palm as an environmentally and economically interesting alternative. "This is because it is a plant that was cultivated in degraded areas of the Amazon until December 2007 and follows the Agroecological Zoning of Oil Palm, established by decree 7.172 of the Federal Government. It's a perennial crop that can't be mechanized and generates thousands of jobs in the countryside," explained Steagall.

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