BBF entered into an unprecedented partnership with Vibra Energia to invest BRL 1,8 billion in the construction of the first green diesel plant in Brazil. The scenario is favorable for the plant due to the high growth of ESG practices by companies

Brasil Biofuels (BBF), one of the largest palm oil producers in the country, entered into a partnership with Vibra Energia for the construction of the first green diesel plant in Brazil. According to the partnership, Vibra Energia will sell, for an unknown value, all the manufacturing of the industry. BBF will invest around R$ 1,8 billion in the construction of the diesel plant. This is the second project of its kind announced in South America, where the first was announced by the owner of BSBios, ECB Group, in Paraguay.

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Vibra Energia and BBF diesel plant will produce 500 million liters per year

Unlike biodiesel, HVO does not need to be mixed with fossil diesel or engine adaptation, as its molecules are identical. The BBF diesel plant, which will be built in the Manaus Free Trade Zone, will have an annual capacity to produce around 500 million liters of fuel per year, which represents 2% of Vibra Energia's demand for sales throughout Brazil. The projection is that the factory will start its activities in 2025.

According to the executive director of Operations, Logistics and Sourcing at Vibra Energia, Marcelo Bragança, currently, green diesel is not marketed on a large scale to industry, not even sold at service stations, however there is great interest in the fuel by companies that are planning to reduce CO2 emissions in their chains.

Brazilian green diesel plant will have a competitive cost compared to fossil diesel

Marcelo recalls that there is a perspective of regulating the use of fuel in the country and there is also a PL that proposes the creation of a mandate for the mixture of 2% in fossil diesel, as a way of promoting its use, since green diesel has a more expensive cost.

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

According to Milton Steagall, CEO of BBF, its fuel should have a competitive cost compared to fossil diesel. Milton claims that this competitiveness will be reinforced by the fact that the company has a tax incentive in Manaus and already has an oil origination network in the Amazon.

BBF has more than 70 thousand hectares planted

The BBF diesel plant will receive the oil that is produced in ten new areas that the company is prospecting in the Amazon and also in the North region. Only in the extruders and own areas, the company would already be able to supply 70% of the new unit's demand.

Currently, BBF has almost 70 hectares planted in Pará and Roraima, however there are also areas mapped for cultivation in Amazonas, Ilha do Marajó and Rondônia.

According to the executive, the plan is to cultivate the palm in remote areas, to dispose of the oil with the help of Vibra Energia, which is experienced in the issue of disposal by waterways, which should also contribute to reducing costs.