Alternatives to oil, renewable energy sources are a reality with high potential for expansion in Brazil

From the sustainable cultivation of oil palm, Grupo BBF invests in the energy transition with the production of biofuels and power generation

São Paulo, January 17, 2024 - The search for alternative energy sources to fossil fuels is the order of the day all over the world and Brazil could become a leader in this process, as it has one of the most diverse energy matrices on the planet. In addition to public policies aimed at this issue, the country has companies that have been thinking about alternative sources to oil for years, such as Grupo BBF (Brasil BioFuels), the largest producer of palm oil in Latin America.
Palm oil, also known as oil palm, has the potential to produce ten times more oil per hectare than soybeans and has the same chemical structure as fossil fuels in the carbon chain, which makes it highly efficient for producing second-generation biofuels, such as SAF (Sustainable Aviation Fuel) and Green Diesel (RD).
For 15 years, Grupo BBF has been growing palm in degraded regions of the Amazon and using palm oil, the most consumed vegetable oil in the world, to produce biofuels and generate clean electricity for isolated regions.
"The company was founded with the aim of changing the energy matrix of the Isolated Systems in the North of Brazil, creating jobs, generating income and reducing the cost of electricity for the population, based on a sustainable and clean matrix, replacing the use of fossil diesel oil with biodiesel made from palm oil. Over the years, it has been possible to extend our operations to an even greater mission, to contribute to the country's energy transition, producing biofuels for other purposes as well. This consolidates us as the largest palm oil producer in Latin America," says Milton Steagall, CEO of Grupo BBF.
Currently, Grupo BBF has more than 75,000 hectares under oil palm cultivation in the states of Pará and Roraima. The company has the capacity to produce more than 200,000 tons of palm oil a year. The company generates more than 6,000 direct jobs and 18,000 indirect jobs, as well as encouraging more than 450 family farmers in the state of Pará. "We say that Grupo BBF works from seed to megawatt," says the executive.

Brazil can be a leader in the energy transition

Brazil has the potential to grow oil palm in a totally sustainable way on 31 million hectares of degraded areas in the Amazon region, according to extensive work carried out by the Brazilian Agricultural Research Corporation (Embrapa). Brazilian legislation on palm cultivation is based on Decree 7.172, established in 2010 by the Federal Government, and is considered the strictest in the world in this sector, as it only allows palm to be cultivated in areas that were deforested in the Amazon region until December 2007.
"Despite the fact that its cultivation is allowed throughout this area, without clearing a single tree of forest, today palm is planted on only around 300,000 hectares in Brazil. With the 31 million hectares available, we have the opportunity to generate 186 billion liters of palm oil per year, for use in the development of biofuel to supply the airline industry. This is more than Petrobras extracts from our pre-salt, which is why I say that we have a true 'green pre-salt' in our country," says the executive.
From 2026, Grupo BBF will start supplying SAF (Sustainable Aviation Fuel) and Green Diesel to Vibra Energia (formerly BR Distribuidora) - under an offtaker contract. The raw material for the advanced biofuels will be palm oil grown by Grupo BBF in the Amazon region. Refining will be carried out at the first biorefinery in the country to produce the unprecedented biofuels on an industrial scale. More than R$2.2 billion will be invested in the new plant, which will have the capacity to produce around 500 million liters of SAF and Green Diesel annually.
In addition to producing oil from the fruit, palm cultivation generates tons of biomass, which is now used for organic recomposition of the palm groves themselves. But according to Steagall, it is also possible to use this abundant biomass to generate renewable energy in isolated systems.

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 over 75,000 hectares and a production capacity of 200,000 tons of oil per year. The company is a pioneer in creating sustainable solutions for generating renewable energy in isolated systems, with thermoelectric plants powered by biofuels produced in the region. Its agricultural activity recovers areas that were degraded until 2007 in the Amazon, following the Oil Palm Agroecological Zoning (ZAE), approved by Decree 7.172 of the Federal Government, of May 7, 2010.
Grupo BBF has created an integrated business model in which it operates from the beginning to the end of the value chain - from sustainable oil palm cultivation, crude oil extraction, biofuel production, biotechnology and renewable energy generation - with assets totaling around R$2.2 billion and activities generating around 6,000 direct jobs in the northern region of Brazil. Grupo BBF 's operations are located in the states of Acre, Amazonas, Rondônia, Roraima and Pará, comprising 38 thermoelectric plants (25 in operation and 13 under implementation), 3 oil palm crushing units, a soybean extruder and a biodiesel industry.
The company is expanding its biofuel offer and has signed partnerships for the production of Sustainable Aviation Fuel (SAF) and Green Diesel. The new sustainable fuels will be produced from 2026 at the country's first Biorefinery, which is currently under construction in the Manaus Free Trade Zone.

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Fernanda Domiciano / Vagner Magalhães