The Amazon holds the energy of the future

Adopting the palm for the production of biofuels can be an alternative as an energy matrix in renewable sources, in the center of world debates. And Pará has the potential for production growth.
June 12, 2023
illustration of biodiesel from grupo BBF, with its raw material, palm oil

The adoption of an energy matrix predominantly focused on renewable sources and that generates less environmental impact is among the major concerns experienced around the world and, as it could not be otherwise, also in the Amazon. Facing this challenge, the solution for the substitution of fossil fuels by alternatives that present low pollutant emission rates may lie in a crop that is strongly developed in the Northern Region of the country, the palm or oil palm.

Already used for the production of biofuels in the region, oil palm culture still presents a great potential for expansion, which can enable not only the growth of clean energy generation, but also jobs and income for local communities.

It's not just today that Brazil has played an important role in generating energy from renewable sources, such as the creation of the National Alcohol Program (Pro-Alcohol) back in 1975 and the consequent growth that ethanol production has shown in the country over the decades that followed. Despite the country's tradition of maintaining a share of renewable energy sources above the world average, only 25% of the fuel produced in the country currently comes from renewable sources, according to the Ministry of Mines and Energy (MME). This scenario can be transformed.

For the CEO of Grupo BBF (Brasil BioFuels), a sustainable energy solutions company and the largest palm oil producer in Latin America, Milton Steagall, Brazil has great potential for growing biofuel production from palm oil, without having to cut down any more forest. "The potential for palm oil to generate biofuel in the Amazon is enormous, given that we have a veritable 'Green Pre-Salt' in the Amazon region with more than 31 million hectares suitable for the sustainable cultivation of oil palm."

Milton explains that the cultivation of oil palm, or dendezeiro, follows a strict legislation defined by the Federal Government in Decree 7172/2010, the Agroecological Zoning of Oil Palm. According to the legislation, the palm can only be cultivated in areas that were degraded in the region until December 2007.

"Currently, only about 200 thousand hectares are cultivated in the Amazon. There is still a lot of potential to grow without cutting down any trees, on the contrary, reforesting previously degraded areas, generating jobs and income for the population. And in this way, develop biofuels and generate clean energy for the residents who live there."

Today, Brazil uses soy as a raw material for 70% of the country's biodiesel production. However, oil palm has a competitive advantage over soy. "The great advantage of oil palm is that it yields 10 times more tons of oil per hectare than soy, another raw material that is also widely used in biofuel production," says Milton Steagall, citing other benefits of oil palm.

"Another highlight is the carbon stock that oil palm provides. Grupo BBF has more than 75,000 hectares cultivated with oil palm, which stores more than 25 million tons of carbon in the Amazon."

FAMILY FARMING

Besides its efficiency and contribution to the environment, oil palm culture also plays an important role in generating employment and income for local communities. Since oil palm planting cannot be mechanized, it generates thousands of jobs in remote locations in the Amazon region, strengthening family agriculture.

As an example of this contribution, in 2022 alone, the 414 farmers who are part of the BBF's Family Farming Program achieved a record production of 37,000 tons of palm fruits, which were sold to Grupo BBF, guaranteeing families a revenue of more than R$30 million.

"These families, who live in the regions of Tomé-Açu, Acará, Concórdia and Moju, receive full support from the Grupo BBF team to expand their production, incorporate new processes and improve their income and quality of life," says Milton Steagall.

To make the partnership work, Milton explains that family farmers count on an exchange to buy fertilizers at affordable prices, technical assistance from palm cultivation specialists, bank credit assistance, fruit logistics for the industry, incentives for continuous improvement, and a guarantee to buy the fruit at competitive market prices.

"This program fills us with pride because we see in practice how oil palm cultivation can change lives. Without giving up planting foods such as cassava, corn, and black pepper, for example, these farmers are able to have a guaranteed income with palm oil, which allows them to improve their families' quality of life.

TO UNDERSTAND:

Given the enormous potential of palm oil for biofuel production, innovations are already being implemented in Brazil. Still lacking in renewable solutions, the aviation market should be the next to benefit from fuel produced from palm oil. The CEO of Grupo BBF (Brasil BioFuels), Milton Steagall, points out the first steps towards the production of these new biofuels in the country.

"Our forecast is that production of Sustainable Aviation Fuel (SAF) and Green Diesel, also known as Hydrotreated Vegetable Oil (HVO), will begin in 2026. The raw material for the new biofuels will be palm oil produced by Grupo BBF. Refining will be done in a plant under construction in the Manaus Free Trade Zone (AM), which will be the first biorefinery in the country to produce these biofuels on an industrial scale," he said.

"We are optimistic and proud that Brazil is giving maximum attention to this agenda, promoting development, generating new jobs and competition in the biofuels sector. I have no doubt that the country will be a global leader and a benchmark in this sector."

 

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