SP: ANP Suspends Authorizations for Four Plants of Virgolino de Oliveira Group, Operating License and Inspection Report Pending

One of The Largest Producers of Biofuels in Brazil Had the Operating Authorizations of Its Four Plants of The Virgolino de Oliveira Group Revoked by ANP. The Units Itapira, Bonifácio, Ariranha, and Monções, Located in São Paulo, Had Their Cancellations Published in The Official Federal Gazette (DOU) This Wednesday.

Initially, the four plants of The Virgolino de Oliveira Group had their decision made based on the necessary documents for the authorization of biofuel production outlined in the ANP regulation. These documents are the operating license issued by the competent environmental agency and the inspection report issued by the Fire Department. With the cancellation of the four units, the country officially lost a daily estimated capacity of 2.61 million liters of hydrated ethanol and 1.49 million liters of anhydrous ethanol.

This is the latest revocation that occurs in the Virgolino de Oliveira Group after nearly two years attempting to deal with its debts without going bankrupt. At the beginning of the month, the group announced the negotiation of R$ 7 billion in debts through what would be one of the largest judicial recovery plans in the country.

Although this was not enough to save the four plants of The Virgolino de Oliveira Group, there is still hope for the group. In mid-month, the company partially reactivated its factory located in the city of Bonifácio. The unit was authorized to produce up to 200 thousand liters per day due to the global pandemic caused by the new coronavirus (COVID-19).

However, even with this small achievement, it is essential that the group’s leaders take important measures to avoid the financial collapse of the company. Thus, it is fundamental that those responsible for the plants of The Virgolino de Oliveira Group comply with current environmental legislation and manage to obtain the necessary certificates to resume activities in the other units.

The National Agency of Petroleum, Natural Gas and Biofuels (ANP) Recently Approved a Public Consultation Process to Reformulate the Regulation Related to the Revocations of Licenses for Energy Production Plants. 

The legislative change arose as a consequence of the Superintendence of Fuel Production (SPC), which identified possible issues regarding the minimum safety conditions of these facilities.

However, the general director of ANP, Claudio Jorge, informed that the Monções and Bonifácio plants were pending the delivery of negative debt certificates (CDNs) before the federal, state, and municipal treasuries. However, this obligation was suspended due to the judicial recovery process.

Other required documents for the granting of the license include the Informative Registration of Unpaid Credits of the Federal Public Sector (Cadin) and other negative certificates. To obtain the authorization and begin work at the plants, interested parties must meet all the requirements established by the regulatory agency.

These changes in regulation also impact the Brazilian electric sector, as the plants are responsible for producing and distributing electricity for the entire country. Therefore, it is important for companies to adopt measures to comply with the new rules and continue operating within the legal parameters established by the agency.

For this, it is necessary to maintain fiscal regularity. To ensure this, it is essential that the managers of these plants of The Virgolino de Oliveira Group are attentive to changes in legislation and stay updated regarding the documents required by ANP to ensure the regular operation of the national energy sector.