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The group of companies, which is already active in the area of palm oil production, biofuels and thermoelectric plants, announced the creation of BBF BioTech. This new company will offer alternative solutions to the use of petrochemicals for sectors such as cosmetics, pharmaceuticals and agribusiness.
During approximately one hour of conversation, Milton Steagall discussed several topics. In each topic, he articulates narratives and passages that, apparently, had no direct connection with what was being addressed. However, to fully understand his logic, these fragments would prove to be fundamental.
The 57-year-old entrepreneur is responsible for guiding the Brazil BioFuels (BBF), a company he founded in 2008, which has since evolved into a vertical model, 100% focused on the North Region. Currently, BBF has an estimated revenue of R$ 1,5 billion in 2022 and is launching its new business unit, BBF BioTech, which will focus on biotechnology.
Steagall, founder and CEO of the BBF, noted for Neo Feed that throughout history, one thing has always triggered another. However, he also stated that this project is greater than any other achievement ever made by the company. To start this new story, the first factory dedicated to the division of the BBF was established in Ji-Paraná, in the state of Rondônia. The total investment was 33 million reais and the monthly production capacity will be 3 thousand tons.
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BBF BioTech is investing approximately R$90 million in its second plant in Manaus (AM), which should be inaugurated in the first half of 2024. The structure will double the division's production capacity, supplying renewable raw materials produced from vegetable oils, such as palm kernel oil. This initiative aims to replace the use of petrochemicals in the agricultural and food sectors.
BBF has been developing its portfolio for about a year. The businessman informed that last year 11 patents were registered and 13 more are planned for this year. These efforts resulted in the new AmazonBio Care line, which includes ten types of inputs with characteristics such as biodegradability and low level of thermal and eye irritation.
The products covered by this offer range from cosmetics, hygiene and personal care, such as shampoos, soaps, sunscreens and shaving foams, to industrial uses such as solvents or herbicides in agribusiness.
BFF completes the qualification of R$ 133,4 million in debentures issuance
BBF BioTech is in the market prospecting phase after an initial stage of sending tested samples to a group of companies. Without disclosing names, the company's plan is to create specific cases with smaller clients before expanding scale.
According to data from the year 2021, the personal hygiene, perfumery and cosmetics sector moved R$ 124,5 billion in Brazil. In addition, the country is among the five largest global markets in this segment. For example, to illustrate the unit's potential, the purchase of Oxiteno by Indorama Ventures was closed for US$ 1,3 billion. This demonstrates that it is possible to access important advances in the production chain with this division.
Oxiteno is the biggest importer of palm kernels in Latin America, a product that costs US$ 1,3 per ton. So, the BBF BioTech has at its disposal the necessary resource to manufacture its flagship. The BBF recently announced an investment of BRL 2,2 billion in a biorefinery in the Manaus Free Trade Zone. This plant will have the capacity to produce Green Diesel (HVO) and Sustainable Aviation Fuel (SAF), expected to start operating in 2025 and be able to absorb more than 500 million liters annually.
Through a contract signed in November 2021, all volume will be destined to Vibra. This is the second initiative of its kind in South America, as in the same period the BSBIOS, an ECG Group company, announced an investment of US$ 1 billion for the construction of an advanced plant for biofuels in Paraguay.
Vibra's HVO and SAF production only uses the yellow part of the palm tree. What is of no interest to the company, however, is the white interior. However, Steagall points out that with this leftover it is possible to produce the same ethoxylates that Oxiteno does, but being 100% renewable and green. At the same time, there are other ongoing projects in the North Region aimed at recovering degraded areas in accordance with the group's proposal. An example of these projects is the production of ethanol with corn in Boa Vista (RR), whose commercial operations are scheduled to start in 2024.
On the way to BRL 2 billion
BBF, which is controlled by Steagall and other undisclosed individual shareholders, has assets valued at approximately R$2,1 billion. The group has three oil palm crushing units, one soybean extruder and a biodiesel extruder, in addition to 38 thermoelectric plants in the region. These structures have an installed capacity of 86,8 megawatts and serve approximately 140 customers.
To finance its expansion in the Amazon market, BBF seeks partnerships and resources such as BNDES loans. Recently, the company completed a new issue of debentures which raised R$133,4 million. In the medium term, the BBF's objective is to go public when it is possible to reopen windows for IPOs and project revenues of BRL 2 billion in 2023.
