BBF Partners With Vibra Energia To Build The Country’s First Green Diesel (HVO) Plant

BBF Has Established a Unique Partnership with Vibra Energia to Invest R$ 1.8 Billion in the Construction of Brazil’s First Green Diesel Plant. The Scenario Is Favorable for the Plant Due to the High Growth of ESG Practices Among Companies

Brazil Biofuels (BBF), one of the largest palm oil producers in the country, has partnered with Vibra Energia for the construction of Brazil’s first green diesel plant. According to the partnership, Vibra Energia will sell all the production from the plant for an undisclosed amount. BBF will invest about R$ 1.8 billion in the diesel plant’s construction. This is the second project of its kind announced in South America, with the first being announced by BSBios’s owner, ECB Group, in Paraguay.

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Vibra Energia and BBF’s Diesel Plant Will Produce 500 Million Liters Annually

Unlike biodiesel, HVO does not need to be blended with fossil diesel or require modifications to engines, as its molecules are identical. The BBF diesel plant, to be built in the Free Trade Zone of Manaus, will have an annual production capacity of about 500 million liters of the fuel, which represents 2% of Vibra Energia’s demand for commercialization throughout Brazil. The projection is that the factory will start its operations in 2025.

According to the Executive Director of Operations, Logistics, and Sourcing at Vibra Energia, Marcelo Bragança, currently, green diesel is not commercially available on a large scale for industry, nor is it sold at gas stations; however, there is significant interest in the fuel from companies planning to reduce CO2 emissions in their supply chains.

Brazilian Green Diesel Plant Will Have Competitive Costs Compared to Fossil Diesel

Marcelo notes that there is a prospect of regulating the use of the fuel in the country and there is also a bill proposing the creation of a mandate for a 2% blend into fossil diesel, as a way to promote its use, given that green diesel has a higher cost.

However, the executive states that regardless of this regulation, the scenario is favorable for demand for the product in Brazil. According to Marcelo, even Vibra and some of its clients have already imported the fuel for testing in the country.

According to Milton Steagall, CEO of BBF, their fuel should have a competitive cost relative to fossil diesel. Milton states that this competitiveness will be reinforced by the fact that the company has tax incentives in Manaus and already has a network for oil sourcing in the Amazon.

BBF Has More Than 70,000 Hectares Planted

The BBF diesel plant will receive oil produced in ten new areas that the company is exploring in the Amazon and also in the North region. Just from the extruders and its own areas, the company could cover 70% of the new unit’s demand.

Currently, BBF has almost 70,000 hectares planted in Pará and Roraima, but there are also areas mapped for cultivation in Amazonas, Marajó Island, and Rondônia.

According to the executive, the plan is to cultivate palm in remote areas, using Vibra Energia’s expertise in flowing river transport to assist in oil transportation, which should also help reduce costs.