BASF and 3tentos Perform Unprecedented Operation with Decarbonization Credit (CBIOs)

(BASF) Barter operation focuses on the economic and environmental sustainability of the business; • BASF should expand the negotiation model for the sugar-energy sector; • Producer of biodiesel since 2014, 3tentos has the Social Fuel Seal, granted by the Ministry of Agriculture -- In an unprecedented partnership in the agricultural market, BASF and 3tentos, a gaucho agribusiness group, developed a new operation model with the issuance of decarbonization credits (CBIOs) in exchange for inputs. For the first time, a barter operation, as this exchange is known, is carried out with a focus on environmental sustainability.

Producer of soy biodiesel since 2014, 3tentos is entitled to decarbonization credits and will transfer them to BASF, in exchange for the supply of agricultural inputs. The two companies already carry out traditional soybean barter operations and now BASF will receive a new currency, the CBIOs.

BASF started to develop this barter model last year, based on the National Biofuel Policy (RenovaBio). The entry into the carbon market, involving “green bonds”, allows the company to meet the needs of customers and encourage activities aimed at the production of renewable energy in the country.

“BASF believes that the legacy of agriculture depends on the balance between the economic and environmental sustainability of businesses. The barter with CBIOs supports the country's environmental commitments. In addition, we reinforce our character as an innovative company and partner with customers ”, says Patrícia Andreoni Ambrosio, senior manager of Business Operations at BASF's Agricultural Solutions Division in Brazil.

With the negotiation, 3tentos uses the CBIOs to which it is entitled as exchange assets. This new currency values companies that produce renewable energy and contribute to annual decarbonisation goals for the fuel sector.

“We are proud to be at the forefront of an innovative operation together with BASF. We are at the forefront of an extremely positive agenda, focusing on sustainability in agribusiness and extolling the value of our entire ecosystem, of inputs, grains and industry. This allows us to carry out this first business of purchasing inputs through CBIOs, which originated from the production of clean energy ”, says Benhur Vione, director of Inputs at 3tentos.

Created in 1995, 3tentos, which is headquartered in Santa Bárbara do Sul (RS), bases its ecosystem on three pillars: retail of agricultural inputs (seeds, fertilizers and pesticides), origination and trading of grains and industrialization of soy. In 2014, the company started producing biodiesel at its plant in Ijuí (RS) and, in 2019, strengthened its production with the oil and soy meal extraction unit in Cruz Alta, also in Rio Grande do Sul.

Since 2013, 3tentos has had the Social Fuel Seal, granted by the Ministry of Agriculture to biodiesel producers. The seal rewards industries that favor family farming in their production chain. In 2020, 3tentos also received RenovaBio certification, guaranteeing energy-environmental efficiency throughout the company's production chain, with a focus on reducing carbon emissions.

The increase in the participation of bioenergy in the Brazilian energy matrix is part of the commitment assumed by the country at the United Nations Conference on Climate Change in 2015 (COP 21). For this reason, the National Biofuels Policy (RenovaBio) was created, which adopts the Decarbonization Credit (CBIO) as a tool to achieve this goal.

CBIOs are issued by producers and importers of biofuels and must be purchased by fossil fuel distributors, who have decarbonization targets. Each CBIO corresponds to a ton of carbon dioxide (CO2) that is no longer produced.

In addition to the barter of CBIOs generated by the production of biodiesel, BASF intends to expand this business model to serve the sugar-energy sector.

With a rapidly growing population, the world is increasingly dependent on our ability to develop and maintain sustainable agriculture and healthy environments. Working with farmers, agricultural professionals, pest management experts and others, it is our role to help make this possible. That is why we invest in a strong R&D structure and a broad portfolio, including seeds and genetic improvement, chemical and biological crop protection, soil management, plant health, pest control and digital agriculture. With teams of experts in the laboratory, field, office and production, we connect innovative thinking and realistic action to create real-world ideas that work - for farmers, society and the planet. In 2020, our division generated sales of € 7.66 billion. For more information, visitwww.agriculture.basf.com or any of our social media channels.

At BASF we create chemistry for a sustainable future. We combine economic success with environmental protection and social responsibility. The BASF Group has approximately 110 thousand employees who work to contribute to the success of our customers in almost all sectors and countries in the world. Our portfolio is organized into 6 segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition and Care and Solutions for Agriculture. BASF recorded sales of € 59 billion in 2020. BASF shares are traded on the Frankfurt Stock Exchange (BAS) and as American Depositary Receipts (BASFY) in the United States. For more information, visit: www.basf.com .

3tentos is a Brazilian agribusiness company founded in 1995 that offers a vertical and integrated ecosystem based on three pillars: retail of agricultural inputs (seeds, fertilizers and pesticides), origination and trading of grains and industrialization (bran, oil and biodiesel) soybean). With sales of over R $ 3 billion in 2020 and 1,300 employees, 3tentos has almost 17 thousand active customers and is present in 40 municipalities in Rio Grande do Sul, with more than 130 professionals (agronomists and agricultural technicians and researchers) that provide specialized consultancy in management, management and technology in the field. The company also has two seed processing units located in the city of Santa Bárbara do Sul (RS) and a fertilizer mixing unit in Ijuí (RS). For more information, visitwww.3tentos.com.br READ MORE