Charting a Course through Turbulent Times in Latin America
(Biofuels International) Assessing this year’s prospects for biofuels in South America is about much more than just what is happening in Brazil. As a starting point, however, it’s difficult to move pass the country’s recent change of government and subsequent upheaval surrounding the actual changing of power.
With more than 400 biofuel plants operating in Brazil, according to the latest USDA figures, and the country’s National Biofuels Policy, RenovaBio, now into its fourth year, the next few months are going to be crucial in setting the sector’s forward agenda.
The new government, headed by President Luiz Inacio Lula da Silva, took office on January 1, sparking political protests which attracted global attention.
For Brazil’s business leaders, however, the focus now switches to what their fresh administration will do, including as regards climate change, energy transition and renewables.
An early opportunity for the country’s newly appointed Environment Minister, Marina Silva, to show her hand came when she addressed the World Economic Forum (WEF) in Davos, Switzerland, on January 17, an opportunity used to declare a firm commitment to ‘rebuilding’ the country’s environmental agencies and policies which she said had been ‘completely dismantled’ by the previous administration.
Climate summit
She also told the Davos gathering that Brazil is keen to host the COP30 climate summit in 2025, essentially to show the country’s renewed commitment towards curbing climate change.
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Alongside this positive approach to Brazil’s renewable energy future, the new government is committed to producing an updated biofuels mandate policy, with a decision on this expected by March.
It would be easy, of course, for global concerns over the protection of the Amazon to over-shadow all else in the development of this fresh approach, a prospect which could leave biofuels’ developers to fend for themselves.
Even if not centre-stage over the next few years, however, it is to be hoped that biofuels will at least be allowed to develop without interference or obstruction.
Aviation fuel potential
One high point on the current development landscape, both in Brazil and elsewhere in South America, is the clear growth in focus on the region’s potential to become an important producer of sustainable aviation fuel (SAF).
While no SAF has been produced in South America to date, this situation is set to change over the next couple of years. US-headquartered Honeywell Performance Materials and Technologies (PMT) have confirmed, for example, that they are currently assessing 12 proposed SAF projects in the region, with two projects potentially being ready for public announcement later this year.
Such possibilities certainly fit into Minister Silva’s climate change action plan, with Honeywell PMT seeming to be a good partner for forward movement, having announced the discovery of an ‘innovative ethanol-to-jet fuel (ETJ) processing technology that allows producers to convert corn-based, cellulosic, or sugar-based ethanol into SAF’.
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Meanwhile, Honeywell UOP, another part of the same group, is working with the Brazilian biodiesel producer, ECB Group, on an SAF-focused plant development in Paraguay, a project described by the company as a ‘first of its kind development anywhere in the southern hemisphere’.
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Fernandes (Jose Fernandes, Honeywell PMT’s president in the region) also said that similar positive action was present in Colombia, adding that the country has a wide range of feedstocks available of biofuel production, including its own domestic supply of palm oil.
“Palm oil, of course, has been restricted as a feedstock globally for reasons everyone knows,” he said.
“In Columbia, however, studies are being run to show the regulatory authorities that the country’s own supplies are from recovered areas of production, a fact which could make domestic palm oil available for use on a broader basis than exists at present.
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Argentina and Peru, meanwhile, have been disagreeing over biodiesel tariffs since late 2016, with Argentina requesting the World Trade Organisation to rule on Peru’s alleged anti-dumping and anti-subsidy duties on Argentinian biodiesel.
This issue was ‘refreshed’ by Argentina in another approach to WTO late last year and remains unsolved.
Ultimately, South America has huge biofuel resources, production knowledge and development potential. Converting all this into a settled and secure industry across the Region, however, continues to be a challenge. READ MORE
Farmers struggle in Argentina as drought withers their crops (Associated Press)
