Brazil stands out as an example of sustainable oil palm production. Since 2010, the country has had Agroecological Zoning for Oil Palm, defined by decree 7.172 of the Federal Government. The initiative prohibits the cutting down of forest for this purpose and determines that cultivation should only take place in previously approved areas that have been deforested by December 2007. Currently Grupo BBF (Brasil BioFuels) is the largest palm oil producer in Latin America.
With 15 years' experience, the Group has an integrated and verticalized business model, in which it dominates the entire production chain. The company develops all its activities based on a cycle that involves socio-economic development, job creation - there are almost 7,000 direct jobs and another 21,000 indirect jobs - and environmental preservation.
There are more than 75,000 hectares of oil palm planted in the states of Pará and Roraima by Grupo BBF, which is responsible for storing more than 25 million tons of carbon in the atmosphere, generating jobs and income for the region.
The palm has a perennial cultivation cycle, its fruit is harvested while the adult tree remains in the ground. "As well as inhibiting new deforestation, the measure has found a solution to past mistakes. The aim is to restore the ecological balance in these areas. O Grupo BBF follows the best international practices for sustainable palm management, with continuous monitoring of the surrounding areas and strictly adheres to the indicators established by the National Environment Council (Conama)," says Milton Steagall, CEO of Grupo BBF.
From the palm, Grupo BBF's main raw material, the company extracts its oil (also known as palm oil) for the development of renewable inputs through biotechnology, the production of biofuels and the generation of renewable electricity in isolated systems. For palm oil production alone, the company has the capacity to produce more than 200,000 tons a year. The raw material is processed in its own extraction plants in Roraima and Pará, and most of the oil is currently used to produce biofuels used to generate clean energy for isolated locations in the Amazon.
Production benefits the environment and the population
The choice of palm to produce biofuels is based on advantages such as the yield of the crop. Palm yields up to 10 times more than soy in terms of oil per hectare cultivated per year. It also has a positive balance in terms of carbon emissions and generates jobs in the field, since planting and harvesting cannot be mechanized.
A pioneer in the creation of sustainable solutions for generating renewable energy in the isolated systems of the Amazon region, with thermoelectric plants powered by biofuels produced in the region. Grupo BBF helps develop sustainable agribusiness in the lung of the Amazon. Currently, 25 thermoelectric plants are in operation in the Isolated Systems, serving more than 140,000 customers, and another 13 plants are under implementation.
In addition, with the aim of expanding its portfolio, the company is investing in new solutions using oil palm as the main raw material. By 2026, Grupo BBF will have added more than 100,000 hectares of oil palm to its cultivation areas.
In order to draw up the Agroecological Zoning of Oil Palm, the federal government relied on extensive work carried out by the Brazilian Agricultural Research Corporation (Embrapa), which mapped around 31 million hectares suitable for oil palm cultivation in the Amazon region, from areas that had been deforested by December 2007.
"The bill for this sustainable "green pre-salt" also includes huge figures for the Brazilian economy: each hectare is capable of generating up to 8,000 liters of palm oil. 8,000 liters times 31 million hectares gives Brazil the opportunity to produce 240 billion liters of palm oil a year. A figure 30% higher than the volume of oil extracted by Petrobras in 2022 - which was around 175 billion liters" - Milton Steagall, CEO of Grupo BBF.
O Grupo BBF was born with the aim of decarbonizing the Amazon rainforest. In its 15 years of existence, the company has been studying biological systems and natural resources combined with the use of new technologies, creating more sustainable products and services. The company invests in innovation aligned with sustainability for the development of advanced - 2nd generation - biofuels, including Renewable Diesel and Sustainable Aviation Fuel (SAF), which will be produced from 2026 in the unprecedented biorefinery being implemented in the Manaus Free Trade Zone.
In the medium and long term, oil palm "is" and "will continue to be" the most robust and efficient crop for decarbonization, whether in the production of advanced biofuels (on a national and international scale) or as an important source of biomass for renewable energy generation in isolated systems. The generation of renewable energy makes Brazil a benchmark and powerhouse in this area. And in this segment, it's important to note that palm is also the solution for generating low-cost energy in Isolated Systems, mostly located in the northern region of Brazil - there are 211 Isolated Systems, according to the ONS. The challenges are enormous, as is the impact of its cost on the national bill - since these are small thermoelectric plants that generate energy for remote locations using diesel oil (an expensive and highly polluting source of energy).
"Look at the size of the opportunity, to produce unprecedented low-cost biofuels, generate clean, low-cost energy and without cutting down a single tree in the native forest. This is the Green Pre-Salt that we have the opportunity to exploit with environmental responsibility and sustainability," concludes Steagall.
In addition to the areas identified for palm planting, Grupo BBF is a pioneer in the Agroforestry System concept in its operations, through the intercropping of cocoa with palm and açaí. The company is due to start growing cocoa this year. In all, 30,000 hectares are to be planted with the fruit native to the Amazon by 2030.
About Grupo BBF
Grupo BBF (Brasil BioFuels), a Brazilian company founded in 2008, is the largest palm oil producer in Latin America, with a cultivated area of more than 75,000 hectares and a production of around 200,000 tons/year of oil. It has created an integrated business model with assets totaling around R$2.2 billion and activities generating almost 7,000 direct jobs in the northern region of Brazil.
Grupo BBF 's operations are located in the states of Acre, Amazonas, Rondônia, Roraima and Pará, and comprise 38 thermoelectric plants (25 in operation and 13 under implementation), 3 oil palm crushing units, a soybean extruder and a biodiesel industry.
