New Fuel of the Future Law: Lula sanctions law that provides for an increase in the 35% ethanol blend in gasoline. Project promises to avoid millions of tons of CO2 by 2037
President Luiz Inácio Lula da Silva sanctioned this Tuesday (08), the law of the Fuel of the Future project, which aims to unlock investments in the order of R$260 billion and avoid emissions of 705 million tons of carbon dioxide by 2037, according to an assessment by the Ministry of Mines and Energy released before the ceremony. In addition, the initiative aims to change the mix of ethanol in gasoline.
35% ethanol blend in gasoline promises to change Brazil
The program approved by the National Congress generates new green industries in Brazil, and is considered by the government as the largest decarbonization project in the transport sector. According to the Minister of Mines and Energy, Alexandre Silveira, in a statement, the advances that Brazil will achieve with the fuel of the future are unique, introducing sustainable aviation fuel (SAF) and green diesel to energy matrix, and decarbonizing sectors that contribute significantly to the planet’s pollution.
The project approved in the Chamber, in addition to leveraging the production of new fuels such as SAF and biogas, should facilitate an increase in the mix of ethanol in gasoline and biodiesel in diesel, boosting industries such as sugarcane, corn and soybeans, which already account for a significant portion of biofuel consumption in Brazil.
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Increasing the biodiesel blend in diesel to 25% by 2035, compared to the current 14%, as provided for in the Fuel of the Future Law, will require a volume of soybean oil 296% greater than the 4,8 million tons that the country used to produce biofuel in 2023, when the blend was at 12%, according to calculations by the Brazilian Association of Vegetable Oil Industries (Abiove).
Investments could reach R$52,5 billion
In Brazil, biodiesel production is mostly made from soybean oil, which accounts for more than 70% of the total raw materials used. P
In order to reach this level of production that the increase in the 35% ethanol blend in gasoline may require by 2035, investments of R$52,5 billion will be needed in new soybean plants and crushers, according to Abiove, an entity that brings together oilseed traders and processors.
In this scenario, biodiesel production would consume 19 million tons of soybean oil per year by 2035, compared to the 5,9 million tons estimated by Abiove in 2024. According to the CEO of biodiesel producer Binatural Energia, André Lavor, the sanction of the Fuel of the Future Bill, which increases the mixture of Ethanol in gasoline, is a milestone in the fight against climate change.
The decarbonization of the transportation matrix in Brazil is a decisive step towards reducing greenhouse gas emissions and the increase in the 35% ethanol blend in gasoline will be decisive.
Biodiesel will contribute to a reduction of more than 320 million tons of CO2
According to the executive, with the progressive increase in the ethanol mix in gasoline, the biodiesel sector will contribute to the reduction of more than 320 million tons of CO2 in the next 10 years.
He also mentioned the addition of 412 billion reais to the GDP and a saving of 10,5 billion dollars in imports of fossil fuels, such as diesel, since biodiesel will make up a larger portion of the product sold at gas stations.
The project was approved during the Liderança, Verde Brasil Expo fair, at the Brasília Air Base, which hosts an exhibition of equipment and vehicles that will use biofuels such as SAF and BioGLP.