What the launch of the Global Biofuels Alliance means for Brazil

The world’s three main biofuel producers – Brazil, India and the United States – along with 16 other countries and 12 international organizations, launched on Saturday the Global Biofuels Alliance during the G20 summit in New Delhi.  

The initiative envisages expanding technical and technological cooperation for the expansion of biofuels, the decarbonization of the transport sector and the energy transition.

Aurélio Amaral, a partner at Schmidt Valois law firm and former director of Brazil’s oil, gas and biofuels regulator ANP, says the agreement shows the country has done its homework and does not need any more subsidies. 

“What we need is a single policy that values the environmental services of biofuels, allowing us to be a competitive and relevant player in the world market,” Amaral told BNamericas.

He said Brazil must harmonize its national biofuels policy, RenovaBio, with the carbon market to strengthen the local industry and meet the requirements of the Paris Agreement.   

“The infrastructure, industry and technical knowledge that Brazil already has can make a significant contribution to the world, especially to the aviation sector, which is under pressure to reduce its emissions and has no possibility of electrification,” Amaral said.

The lawyer believes, however, that technological advances will still be needed to consolidate second-generation ethanol, renewable diesel (HVO) and SAF, or aviation biokerosene.

Francisco Turra, chairman of the Brazilian association of biofuel producers Aprobio, said in a statement that the launch of the alliance should speed up the approval of the Combustível do Futuro (Fuels of the Future) bill in Brazil, guaranteeing predictability and legal certainty, with an emphasis on promoting the use of ethanol, biodiesel and advanced biofuels (green diesel and aviation biokerosene). 

He believes that the formalization of the agreement should also stimulate green financing, RenovaBio and the carbon market.

Beatriz Pupo, biofuels associate director at S&P Global Commodity Insights, said the announcement of the alliance is very positive for the industry as it highlights the strategic importance that biofuels have for decarbonizing the transport sector. 

“And its potential is even greater, especially in India, if the flex-fuel vehicle solution is adopted in its market,” she told BNamericas. 

Pupo highlighted the possible benefits associated with technological cooperation between the countries in the group. 

“In Brazil, for example, we have the mastery of cellulosic ethanol licenses as a production route and as a source of strategic raw material for SAF production,” she said.

Pupo sees biofuels remaining as an important low carbon solution beyond road transport, moving to the center stage as the main option for airlines. 

“The US, Brazil and India are all major ethanol producers, which is rewriting its own story to become a key strategic feedstock for SAF production. Mandates, incentives and investments in new technology will remain key for the present and future of the industry,” she said.

Brazil has been producing and using biofuels for 40 years, with positive results especially in creating jobs and reducing emissions from the transportation sector.

The country’s mines and energy (MME) minister, Alexandre Silveira, said the Global Biofuels Alliance is a unique moment of global recognition of the importance of biofuels so that countries can achieve their goals of being carbon neutral. 

“The launch consolidates the technical work led by the MME with the support of the ethanol and automotive sectors,” he said in a statement. 

According to the International Energy Agency (IEA), global production of sustainable biofuels needs to triple by 2030 if the world is to achieve net zero emissions by 2050. 

Liquid biofuels provided more than 4% of the total energy for transportation in 2022 but their use still has great potential for growth. 

The use of biofuels in aviation and shipping, to reduce emissions, will further increase global consumption and the need to expand the number of suppliers, the IEA says.