Proposal increases minimum biofuel quotas in gasoline and diesel oil and sets target for inclusion of biomethane as a mandatory portion of natural gas
You won't believe the changes that are coming! President Lula sanctioned today, in a solemn act at the Air Base in Brasília, the project of fuel of the future, which revolutionizes the mixing ethanol in gasoline and sets ambitious goals for aviation.
According to the Ministry of Mines and Energy, the program will unlock investments of $ 260 billion in several areas, avoiding the emission of 705 million tons of CO2 by 2037. The sanction took place during the Liderança Verde Brasil Expo fair, which demonstrates the main decarbonization technologies in operation in the country.
The advances we will have as a result of this 'fuel of the future' law are unprecedented — highlighted the Minister of Mines and Energy, Alexandre Silveira
One of the great benefits of the project is the stimulus to the production of sustainable fuels, such as green diesel, produced from fats of vegetable and animal origin, sugar cane, ethanol and biomass. These new fuels will contribute significantly to reducing carbon emissions, especially heavy vehicles.
- Brace yourself for the impact: INCREASE IN ICMS will EXPLODE the price of gasoline and weigh heavily on Brazilians' pockets!
- Get ready: fuel prices will skyrocket in Brazil in 2025 and your wallet will feel the pressure!
- International oil prices soar, but gasoline and diesel remain stable in Brazil: how can Petrobras contain the impact on gas stations?
- Why is gasoline expensive in Brazil, even though it is one of the largest oil producers? Find out the reasons and impacts here
Also in focus are incentives for biomethane, an alternative to natural gas used in passenger and cargo transportation, and the Sustainable Aviation Fuel (SAF), obtained from renewable raw materials for use in the aviation sector.
Changes in fuel blends
By the project, the percentage of mixing ethanol in gasoline becomes of 27%, and the Executive Branch may adjust between 22 35% and%. Currently, the mixture varies up to 27,5%, with a minimum of 18% ethanol.
In relation to biodiesel in diesel, currently in 14% since March by the National Energy Policy Council (CNPE), the project foresees an increase of one percentage point annually from March 2025, getting at 20% in March 2030.
The proposal also states that the green diesel will have a mandatory minimum volumetric participation in fuels, defined by the CNPE until 2037, without exceeding 3% per year. Green diesel is produced exclusively from renewable biomass.
Carbon storage
The project creates rules for the authorization of geological storage of carbon dioxide, which involves injecting gas into geological reservoirs through drilling into the ground. Brazilian companies will be able to request authorization from the National Agency of Petroleum, Natural Gas and Biofuels (ANP) to carry out the activity. The ANP will be responsible for regulating and monitoring storage, ensuring safety and efficiency in the process.
During the exhibition at the fair, visitors were able to see aircraft from airlines Azul, Latam and Gol, in addition to vehicles from car manufacturers Mercedes-Benz, Toyota, Volvo, Renault and Volkswagen. In total, 66 vehicles were presented, including trucks, tractors, buses and passenger cars, all aligned with the new guidelines of fuel of the future.
And you, what do you think of these changes in the ethanol blend in gasoline and the new goals for aviation? Do you believe that the 'fuel of the future' will transform the energy sector in Brazil? Leave your opinion in the comments!