One of the main global challenges in recent years - and in the years to come - is to make structural changes to the energy matrix with the aim of replacing fossil fuels with renewable sources, especially those with low or no carbon emissions, the so-called "clean energies". In the energy transition, Brazil has the potential to become one of the leading exponents.
Historically, the most widely used energy sources in Brazil have been fossil fuels, derived from oil. Although the national matrix has a share of renewables above the world average (46% against 14%), there is still a long way to go towards decarbonization.
The case of fuels is emblematic: according to the Ministry of Mines and Energy (MME), only 25% of fuels currently come from renewable sources. However, the country has the potential and the desire to become one of the world leaders in green energy. In 2021, the MME announced the goal of reaching 2030 with this percentage at 30%.
Brazil has a tradition of using renewable energy sources. In 1975, the National Alcohol Program (Pró-Álcool) was created, the first movement in the biofuels market. The production of hydrated ethanol has taken off over the decades, reaching approximately 16.8 billion liters in 2021, according to the National Agency of Petroleum, Natural Gas and Biofuels (ANP).
The second movement took place in 2008, with the start of the commercialization of biodiesel in Brazil, a partially renewable option for heavy fleet vehicles. In 2017, the National Biofuels Policy (RenovaBio) was implemented, and its main achievements include the creation of a carbon market in the country, with the Decarbonization Credit (CBIO), and the compulsory blending of biodiesel into diesel.
Today, the blend approved by the MME is 12% biodiesel in diesel, making the measure essential for the maturity of the biodiesel industry in Brazil in recent years.
Currently, 70% of biodiesel production uses soy as a raw material. On the other hand, Brazil has a range of oilseeds, which are still little used, with great energy potential.
To give just one example, oil palm can yield an annual average of 5 tons of oil per hectare, compared to 0.4 tons of oil from soybeans.
Furthermore, oil palm has a positive balance in terms of carbon emissions and relies on the Agroecological Zoning of Oil Palm, defined in 2010 by the government, which determined that planting can only be done in areas degraded until 2007, with the aim of recovering them.
Diversifying biodiesel production can boost the industry, bring more environmental benefits, and make the market more dynamic.
Without a doubt, these are steps to be celebrated, but there is still timidity in the development of 100% renewable biofuels, especially if we consider the variety of available technologies to be explored. One of the main exponents of this revolution is green diesel, an innovative product of the second generation of biofuels.
Green diesel is a 100% renewable biofuel that does not require any mixing with fossil fuels, nor does it need any adaptation in vehicle engines. It is produced by processing renewable raw materials, including palm oil.
Already in use in European countries and in the United States, green diesel is the result of technological improvements to accompany vehicle innovations, which require a better quality fuel, with high stability and minimum levels of pollutants.
The product is the third most used biofuel in the world and the one whose production is growing most. The advantage of green diesel is its efficiency in solving the challenge of reducing pollutant gas emissions.
Just as important as eliminating the use of fossil diesel is developing a sustainable alternative for the aviation market, which still lacks renewable solutions in Brazil. Sustainable aviation fuel (SAF) is emerging around the world.
The European Union is considering adopting a 2% SAF requirement by 2025 on aircraft departing from airports in its territory. The United Kingdom has higher ambitions: to reach 10% mandatory SAF by 2030. The United States is going further and has announced the goal of completely decarbonizing the civil aviation sector by 2050.
It is worth noting that, according to the Emergen Research consultancy, the global biofuels market will reach $247.38 billion by 2027.
Brazil, a nation with an infinite wealth of resources, still doesn't have a plan to decarbonize the aviation sector. The segment consumes 17 billion liters of aviation kerosene a year, which emits around 10 million tons of CO2 in the same period. Fortunately, there are initiatives to change this, and it is already possible to see the first steps of this new biofuels revolution in the country.
The maturity already achieved by the national biofuels market and society's growing desire to decarbonize its activities should accelerate the biofuels revolution in Brazil and make it faster than its predecessors.
*CEO of Grupo BBF (Brasil BioFuels)
