Brasília – On August 22, 2024, Brazil’s National Bank for Economic and Social Development (BNDES) and the Financier of Studies and Projects (Finep) launched a significant public call, offering R$ 6 billion to support the development of bio-refineries dedicated to producing sustainable aviation fuel (SAF) and marine fuel. The initiative is part of Brazil’s broader effort to combat climate change by reducing carbon emissions in the transportation sector.
Announced by Vice President and Minister of Development, Industry, Commerce, and Services, Geraldo Alckmin, along with Minister of Mines and Energy, Alexandre Silveira, the public call is open to Brazilian fuel producers and companies engaged in research, development, and innovation. The program encourages both independent and consortium-based participation, aiming to enhance cooperation among businesses and bolster Brazil’s emerging SAF and sustainable marine fuel industries.
Each proposal must include a business plan requiring a minimum credit of R$ 20 million, utilizing financial instruments available through BNDES and Finep. Interested companies have until October 31, 2024, to submit their projects. The funding will cover a range of activities, from research and technology development to the establishment of semi-industrial and industrial pilot plants, capital investments, and the acquisition of machinery and equipment.
Analysis:
This R$ 6 billion initiative marks a significant step in Brazil’s commitment to sustainable energy. By focusing on SAF and marine fuel production, the program aims to address the substantial CO2 emissions from the transportation sector, which accounts for a quarter of global emissions. With Brazil’s extensive agricultural resources and technological capabilities, this initiative could position the country as a leader in the global biofuel market.
“The R$ 6 billion initiative is set to revolutionize Brazil’s transportation sector by fostering sustainable fuel production, reducing carbon emissions, and positioning the nation as a global leader in biofuel technology.”
The strategic partnership between BNDES and Finep highlights the importance of innovation and cooperation in driving the development of new technologies. The establishment of bio-refineries not only contributes to the reduction of greenhouse gas emissions but also fosters economic growth and energy security. The participation of national and international stakeholders, along with government support, will be crucial in ensuring the success of these projects.
Source: BNDES and Finep Press Release
