Net Zero in Latin America Needs Four Times More Biofuels

by Nayara Machado (eixos (Google Translation)) Biofuel production needs to increase 360% by 2050 in the region -- Latin America and the Caribbean are expanding production of first-generation biofuels and must prepare to export SAF and marine fuel.

Financing and regional cooperation in certification will be essential to explore the new market.

Achieving carbon neutrality by 2050 will require Latin America and the Caribbean to increase liquid biofuel production by 360%, reaching almost 173 billion liters, estimates the Latin American Energy Organization (Olade).

In a technical note (.pdf) released this Monday (24/2, 2025), the intergovernmental cooperation organization shows that the region contributed 27% of the global production of liquid biofuels, with Brazil as the main player (93% of the regional market).

Experience with ethanol and biodiesel is seen as a competitive advantage, alongside the availability of raw materials and agro-industrial capacity, to explore new opportunities that open up with the energy transition.

At the same time, progress must be made on issues such as financing throughout the production chain and regional cooperation in research, innovation and certification .

“For Latin American countries, the production and supply of SAF represents a strategic opportunity. As Corsia advances, the region needs to strengthen its production capacity to supply intra-regional and international traffic,” says Olade.

The document also highlights the pending challenges for the region, such as the need to strengthen regulatory frameworks for sustainability, optimize logistics infrastructure and ensure traceability of the production chain – especially if it wants to export .

The National Agency of Petroleum, Natural Gas and Biofuels (ANP) published, last week, the technical report on the implementation of the regulatory framework for carbon capture, storage and use (CCS), where it is recommended that the agency adopt an experimental regulation model in this first phase in which the activity is still developing.

The technical document is an update of material published in April 2024, before the approval of the Fuel of the Future law , which regulates CCUS in Brazil. And it provides the basis for the decision that was adopted by the agency in December , to opt for pilot regulation.

“[They are] pioneering projects with very distinct characteristics, [which] emphasize the challenge of a regulatory design capable of contemplating all the nuances of an emerging industry, whose technological routes are not consolidated”, explains the report.

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Excerpt from exios (Google Translation): This figure is a fraction of the US$5.3 trillion estimated globally and includes investments in the production of sustainable fuels (SAF), development of new aircraft technologies, operational and infrastructure improvements, and carbon offset measures.

The region accounts for around 6% of global air traffic and 4.8% related to the sector, and faces a series of challenges to make its travel more sustainable, without making its costs restrictive .

With SAF two to five times more expensive than conventional petroleum-based kerosene, the study also notes increased costs for airlines and, consequently, more expensive tickets. Collaborative

investment funds to support production and use, investments in infrastructure and a favorable regulatory environment are some ways to get around the problem.

Furthermore, the Alta report (.pdf) recommends including regional raw materials and methodologies in international schemes – an agenda that Brazil embraced during its G20 presidency in 2024, in an attempt to overcome barriers to its biomass.

“Countries in the region should work to ensure that the region’s raw materials and Life Cycle Analysis measurements are recognized in international schemes, such as Corsia,” says Alta. READ MORE