In a significant step toward green energy and sustainability, the Brazilian government has announced a new public call for business plans focused on the development of sustainable aviation and maritime fuels. The initiative, by various government ministries including Science, Technology, and Innovation (MCTI), Development, Industry, Commerce and Services (MDIC), and Mines and Energy, aims to accelerate Brazil’s transition to a green economy through the establishment of biorrefineries. These biorrefineries will focus on producing Sustainable Aviation Fuel (SAF) and other sustainable fuels for maritime navigation.
A Robust Financial Backing
To support the development and implementation of these business plans, the program will allocate R$ 6 billion. The funding is evenly split between the National Bank for Economic and Social Development (BNDES) and the Financier of Studies and Projects (FINEP). Each organization will contribute R$ 3 billion, focusing on research and development, infrastructure, pilot plants, and the acquisition of necessary equipment.
This initiative is particularly aligned with Brazil’s ambitions to become a leader in the global sustainable fuel market. According to Vice President and MDIC Minister Geraldo Alckmin, Brazil’s vast resources and established history in biofuel production make it well-positioned to lead the world in SAF production. Alckmin emphasized that this public call underscores Brazil’s commitment to strengthening the green economy and advancing global energy transitions.
Project Selection and Criteria
The government’s call for proposals targets Brazilian companies involved in fuel production, R&D, and technological innovation, as well as those in the commercialization of these sustainable aviation and maritime fules. Companies can participate either individually or in consortia, but each submission must present a single business plan requiring a minimum credit line of R$ 20 million for execution.
The project selection process will be rigorous, divided into three main phases: presentation, selection, and the development of a Joint Support Plan (PSC). This plan will be customized for each selected business, detailing the financial support provided by BNDES and FINEP, which may include loans, non-refundable grants, or equity participation depending on the project type.
Brazil’s Role in Global Emissions Reduction
This initiative is critical in the context of global efforts to reduce CO₂ emissions. According to the United Nations’ Intergovernmental Panel on Climate Change (IPCC), the transportation sector contributes approximately 25% of global CO₂ emissions, with maritime and aviation transport alone responsible for about 5%. Sustainable fuels like SAF can significantly reduce these emissions, positioning Brazil as a key player in the fight against climate change.
Conclusion
The Brazilian government’s R$ 6 billion investment in sustainable aviation and maritime fuels is a bold step toward a greener future. With a clear focus on innovation, sustainability, and economic growth, this initiative not only strengthens Brazil’s green credentials but also sets the stage for the country to become a global leader in sustainable fuel production. The call for business plans is open until October 31, 2024, and represents a pivotal opportunity for companies to contribute to Brazil’s leadership in the global energy transition.