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Brazil Accelerates Sustainable Energy Transition with Increase in Mandatory Biodiesel Blending

Written by Paulo Nogueira
Published on 26/05/2023 at 09:26
Updated on 26/05/2023 at 14:44
Grupo Potencial Economia Verde e transição energética
Foto Divulgação | Propriedade do Grupo Potencial | Complexo Industrial do Grupo Potencial | Lapa – Paraná
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Increase in Biodiesel Blending Is Another Step Toward the Green Economy, Improving Public Health, Economy, and Family Farming

In April of this year, Brazil took a significant step toward energy sustainability: the mandatory biodiesel blend increased from 10% to 12%, according to the National Energy Policy Council (CNPE). And the progress doesn’t stop there. In the coming years, this percentage is expected to continue growing, reaching 15% by 2026. This advancement aligns with the country’s commitments to promote a clean energy transition, which reduces greenhouse gas (GHG) emissions, contributing to public health and strengthening the economy and family farming.

Biodiesel is a strategic component for Brazil’s decarbonization goals in transport and fuels. Carlos Eduardo Hammerschmidt, Commercial and Institutional Relations Vice President of Grupo Potencial, explains: “For every 420 liters of biodiesel produced in our factory, we remove 1 ton of CO2 from the atmosphere.”

The Environmental Contribution of Biodiesel: Impressive Numbers

In environmental terms, the biofuel has replaced the import of 59.6 billion liters of diesel between 2008 and 2022. This resulted in the removal of 113.1 million tons of CO2 from the atmosphere, equivalent to planting 826 million trees, a space larger than the states of Sergipe and Alagoas.

Brazil has the potential to become a global reference in energy transition, moving away from fossil diesel and embracing renewable energies such as biodiesel, ethanol, bio-kerosene, and green hydrogen. With the largest biodiesel plant in the country, located in Lapa, Metropolitan Region of Curitiba, Grupo Potencial has a production capacity of 900 million liters per year.

The cutting-edge technology of the plant also allows for the complete reuse of by-products, transforming them into synthetic oil for biodiesel production. Refined glycerin, for instance, is a highly valued by-product by the pharmaceutical industry for developing products such as shampoos, soaps, and oil capsules.

Diversification in Production: Beyond Soy

Biodiesel production goes far beyond soybeans. Corn, palm, chicken offal, cotton, and recycled cooking oil are also used. Just from cooking oil, the plant has already collected 23 million liters since its launch in 2012, avoiding the contamination of over 575 billion liters of water.

Economic and Social Impact: A Promising Future

Brazil is the third largest producer of biodiesel in the world, behind only Indonesia and the United States, with 59 plants spread across 15 states. With production estimated at 14 billion liters per year, the country has sufficient capacity to meet the new demand generated by the increased requirement for biodiesel blending.

Benefits for Public Health: Breathe Easier

The environmental and economic benefits of biodiesel production directly impact the health of the population. The World Health Organization (WHO) estimates that between 20% and 30% of all respiratory diseases are linked to air pollution. In Brazil, 50,000 deaths per year are forecasted due to pollution, according to the Ministry of Health.

Biofuels emerge as a solution to the pollution caused by the transport sector. “Biodiesel is the only way for the transport sector to reduce GHG emissions in the atmosphere,” explains Donizete Tokarski, CEO of the Brazilian Union of Biodiesel and Bio-Kerosene (Ubrabio).

However, even with these benefits, Brazil imported about 12 billion liters of fossil diesel in 2022, while biodiesel industries remained over 50% idle.

The Quality of Biofuel: International Standards

Brazilian legislation for biofuel quality is among the most stringent in the world. Updated by the National Agency of Petroleum (ANP) in March, it has stricter rules than those in effect in the United States and Europe.

Paulo Nogueira

Graduated in Electrical Engineering from one of the country's technical education institutions, the Instituto Federal Fluminense - IFF (formerly CEFET), he worked for several years in the offshore oil and gas, energy, and construction sectors. Today, with over 8,000 publications in online magazines and blogs on the energy sector, the focus is to provide real-time information on the Brazilian job market, macro and microeconomics, and entrepreneurship. For questions, suggestions, and corrections, please contact us at informe@clickpetroleoegas.com.br. Please note that we do not accept resumes at this contact.

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