Read the 12th edition of the Brazil Energy Journal, the first of 2024, a publication produced by our Energy team.
In this issue, partner Bruno Belchior and associates Henrique Rojas, Bárbara Leite, Gabriela Martelo and Guilherme Galiazzi delve into the topic of "Biofuels." The publication analyzes the Brazilian biofuels scenario, considering the historical legacy, ongoing initiatives, and Brazil's crucial role in the global energy transition agenda.
Overview
Biofuels are in the spotlight for their key role in the global energy transition agenda. In the transportation sector, biofuels provide a low-carbon solution to the energy modals considered hard-to-abate, such as the petroleum-based fuels traditionally used for trucking, shipping and aviation. Biofuels are also used in power generation, in cogeneration plants and to power electricity generators.
The opportunities to produce biofuels are extensive due to their biomass-based derivation. "Biomass" is any organic matter with the potential to be converted to energy, encompassing a wide range of sources such as:
Appeal in Brazil
With its land available for energy purposes and favorable climate, Brazil has been a pioneer in biofuel development and is one of the most promising producers of new forms of biofuel.
Aiming to reduce Brazil's dependence on imported oil, the country began its biofuel consumption with ethanol, particularly in the context of the National Ethanol Program ("Proálcool") in 1975.
Ethanol has continued to play an important role throughout the years; for example, in 2008, Brazil became the first country to use more ethanol than gasoline to fuel cars. Other initiatives have risen over time, including the National Program for the Production and Use of Biodiesel ("PNPB") in 2005 as well as the recent programs National Biofuels Policy ("RenovaBio") and Fuel of the Future ("Combustível do Futuro").
A surge of innovative solutions is changing the biofuels landscape, with the development of a wider range of products, such as Sustainable Aviation Fuels ("SAF") and biomass-derived e-fuels, including methanol and biogas.
Complementing its diverse renewable energy resources, Brazil also possesses expertise in biomass power generation. According to data provided by Brazil's National Electric Energy Agency ("ANEEL"), 634 centralized biomass power generation projects are in commercial operation in the country, which account for 8.76% of Brazil's energy matrix.
Brazil's historical legacy, ongoing initiatives, and promising future solidify its position as a key global player in biofuels development and demonstrate its commitment to the global energy transition agenda.
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This article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.
