For Erasmo Carlos Battistella, advances in public policy in the executive and legislative branches have made this a Brazilian national agenda, bringing together industry, agribusiness, environmental organizations and civil society.
01/13/2025
“The year 2024 marked one of the most important chapters in the history of Brazil’s energy transition,” says Erasmo Carlos Battistella, president of Be8, Brazil’s largest biodiesel producer. He is referring to the sanctioning of the Fuel of the Future program in October, recognized as a landmark for boosting biodiesel, ethanol, and new technological routes such as hydrotreated vegetable oil (HVO), sustainable aviation fuel (SAF), and biomethane.
Meanwhile, the approval of the Energy Transition Acceleration Program (Paten, in the Portuguese acronym); of Mover, aimed at supporting the decarbonization of Brazilian vehicles, technological development, and global competitiveness; of the National Sustainable Aviation Fuel Program (ProBioQAV); and of the Low Carbon Hydrogen Development Program (PHBC, in the Portuguese acronym) make up this backdrop for building clean, sustainable mobility. “Over the last year, we’ve seen a movement that has brought together industry, agribusiness, environmental organizations, and civil society and has been reflected in the unanimous approval of public policies for energy transition projects, which is a real Brazilian national agenda,” said Battistella.
The president of Be8 is also one of the leading characters in the pages of this story, having been involved in developing the biofuels industry for 20 years. “This is a new moment in the Brazilian economy, characterized by strong investments in the industrial park and by adding value to agribusiness, boosting the economy and green employment. The private sector is moving forward to make the energy transition a reality and turn Brazil into an international benchmark,” he says.
Investments
Even before Fuel of the Future was sanctioned, it was already possible to recognize concrete signs of a movement by the productive sector in pursuit of the Brazil’s energy transition. In 2024, the National Bank for Economic and Social Development (BNDES, in the Portuguese acronym) disbursed R$4.2 billion to the ethanol, biodiesel, and biomethane industries until November—the highest figure in the past 13 years. In a technical note, the Empresa de Pesquisa Energética (Energy Research Company or EPE) estimates that over R$1 trillion will be invested by 2034 in various technological routes.
The regulatory frameworks defined in the Fuel of the Future provide legal security and predictability for the production sector and will be the pillar for regaining confidence in the Brazilian energy market. The EPE itself has projected that the biodiesel sector will invest R$14.5 billion over the next ten years.
The decision by the National Energy Policy Council (CNPE, in the Portuguese acronym) to increase the biodiesel mandate from 12% to 14% in March 2024 and to 15% from March 2025 also indicated the resumption of public commitments to the decarbonization process and the goals defined by the Paris Agreement, with a direct impact on the reheating of this industry, which stumbled in previous years with the regression of the blend.
Important launches
Be8 was full of announcements of new developments in 2024, such as investments and product launches marked by innovation. Battistella points out that the company closed the year by announcing the acquisition of Biopar, which will allow it to expand its operations to the North, Northeast, and Midwest regions of Brazil. It also launched a biofuel that replaces 100% of fossil diesel, Be8 BeVant, a technological innovation that allows companies to significantly reduce greenhouse gas (GHG) emissions in their operations in the short term, meeting decarbonization targets.
Other news involved agribusiness. Battistella’s business group inaugurated a sustainable agricultural production model in Passo Fundo (RS), South of Brazil, which integrates high technologies with the exclusive use of biofuels, the Compostela Farm. A partnership with John Deere and SLC Máquinas which allows the field machinery to be fueled exclusively with Be8 BeVant.
In August, the company announced the start of work on a new industrial park in Passo Fundo, which will integrate the production of energy, cereal-based ethanol, vital gluten and bran for animal feed. “There are many initiatives that add up to a movement built on the pillars of Public Policies, which are increasingly making Brazil a benchmark in energy transition,” says Battistella, who is also a guest advisor and member of the Energy Transition Working Group of the Federal Government’s Council for Sustainable Economic and Social Development.
New Industry Brazil
At the last meeting of this forum, the Government vice-president and minister of Development, Industry, Trade and Services, Geraldo Alckmin, highlighted Mission 5 of New Industry Brazil (NIB). The plan aims to increase the use of biofuels and electric vehicles in the transportation energy matrix by 27% by 2026 and reach 59% by 2033.
To intensify the technological and sustainable use of Brazilian biodiversity, the growth targets are 10% by 2026 and 30% by 2033. Public and private investments aimed at optimizing energy efficiency will amount to R$ 468.38 billion. Of these funds, R$88.3 billion will come from public credit lines to promote innovation, exports, and productivity projects. So far, R$74.1 billion have already been contracted for 2023 and 2024, while the remaining R$14.2 billion will be available for 2025 and 2026.
Another piece of this roadmap was the Energy Transition Acceleration Program (Paten)—approved in December by the House of Representatives—which created the Green Fund. Managed by the BNDES, the fund will be supplied with tax credits held by companies with the government. The first format allows for tax transactions, i.e. the negotiation of tax debts with the Federal Government with a commitment to invest in sustainable projects, which will receive additional benefits. The other is to use the Green Fund as a guarantee to cover all or part of the financing risk, reducing interest rates and encouraging large-scale sustainability projects.
“Among the many signs pointing to the new year on the horizon in Brazil, the consolidation of the pillars of the energy transition were the most obvious,” explains Battistella. “I believe that we will see a fast response from the productive sector with investments that will boost the sustainable development of the Brazilian economy for the benefit of current and future generations,” he added.
*By Be8 Energy
Source: Valor International