Palm Oil for Biodiesel in the Amazon: Sustainable Fuel or Deforestation Risk?

Monica Prestes (Dialogo Chino) A planned biorefinery will require the cultivation of 120,000 hectares of oil palm, increasing the area planted in Brazil by 60%. An all too familiar debate is underway -- Oil palm, known as dendezeiro in Brazil, can produce up to ten times more vegetable oil per hectare than other crops, but it is regularly condemned as harmful to the biodiversity of tropical forests in Asia, Africa and Latin America. Now, its cultivation looks set to advance in the Brazilian Amazon.

In December, Brasil BioFuels (BBF) and Vibra Energia – the country’s largest distributor of biofuels – announced plans to build a biorefinery for “green diesel” in Manaus, the capital city of Amazonas state. Produced from soybean and/or palm oil, the fuel is seen by many as desirable for low-carbon futures, as it is less polluting than fossil-based diesel.

The refinery is currently in the study phase, and is still without an environmental license or deadline to start construction.

Brazilian law states that oil palm should only be cultivated in areas that were deforested before 2007. BBF’s president, Milton Steagall has assured that the crop already follows these sustainable standards, and also contributes to carbon sequestration in previously degraded areas.

“Oil palm does not occupy forest space. We are talking about areas that were ‘anthropised’ before 2007, and which would be difficult to recover, because frequently they have already turned into pasture,” Steagall told Diálogo Chino. “We take degraded areas and make a perennial crop, which is not mechanised, does not require much fertiliser, and produces for 35 years.”

Steagall added that the refinery will help to power 20 thermoelectric plants in operation and another 14 being planned in the Amazon. For this reason, he said, it will be vital to offer a source of clean energy to the region’s thermoelectric plants, which currently operate with fossil diesel.

However, researchers and environmentalists have criticised the expansion of infrastructure for the production of palm oil in the Amazon.

Less than 3% of Brazil’s biodiesel today comes from oil palm, according to the National Petroleum Agency.

In 2018, the Federal Court suspended the registration of two Agropalma farms on suspicion of illegal occupation, falsification of documents and notary fraud, following a request from the State Public Ministry of Pará (MPE-PA).

However, even with the registrations suspended, Agropalma continues to occupy the area, and conflicts with the quilombolas have been intensifying. “Recently, we have been prevented by Agropalma from accessing part of the forest, stretches of the Acará river where we used to fish, and even cemeteries where our ancestors are found,” says Pimenta (José Joaquim Pimenta, president of the association that brings together six quilombola communities).

Incompatible with family-based agriculture, the palm also ends up competing with subsistence crops such as cassava, an important source of income for small farmers, according to Auristela Castro, researcher at the Federal University of West Pará. She explains that oil palm generates “an atmosphere of uncertainties and threats” to the quality of life of small farmers. READ MORE