Advanced BioFuels USA

by Ana Flávia Silva Paiva and Isabela Almeida Rodrigues* (Federal University of Goias/ Brazilian National Institute of Science and Technology for Studies on the United States/ Advanced Biofuels USA) 

The Webinar, “Integration between biofuels: strategies to overcome the crisis,” held on June 4, 2020, was an online event broadcast on the Brazilian Biodiesel Union’s YouTube channel with the participation of 19 guests representing the government, industry leaders, presidents of associations and deputies. The online event had 1,273 views from Brazilian agents, academics, politicians and others interested in the theme of the webinar. The objective of the online seminar was to discuss the strategies adopted by the biofuels sector to face the crisis generated by the pandemic and the launch of the Biocoalition.

Biocoalition

Biocoalition, a union of pro-biofuels groups, was launched this Thursday to integrate actions that enhance renewable fuels. Their objective is to discuss with the government the approval of exceptional measures to preserve the sector during this period of crisis caused by the new coronavirus. Biocoalition is an initiative led by the Parliamentary Group for Biodiesel, Brazilian Biodiesel Union called Ubrabio, Brazilian Sugarcane Industry Union (Unica) and the Parliamentary Group for the Valorization of the Sugar-Energy Sector.

The launch of the Biocoalition was an initiative of the sector and its launch was organized for World Environment Week. According to the president of Ubrabio, Juan Diego Ferrés, their intention is to “reinforce the mission of biofuels, which is to provide humanity with an alternative for replacing oil“. As remembered by Plínio Nastari, the civil society representative at National Energy Policy Council, it is necessary to care about controlling air pollution, due to the fact that we are “dealing with issues that affect breathing. And it is more than proven that biofuels are a fundamental element for controlling air pollution”.

According to Congressman Arnaldo Jardim, three points should be part of Biocoalition’s work agenda:

1) Incentivize the secure possession of goods on deposit using a warrant, in order to strengthen the ethanol sector during this crisis,

2) The definition of CBios taxation and new RenovaBio goals and

3) The anticipation of B13. Requested by the biodiesel sector and now supported by the ethanol sector, the anticipation of the mandatory blend increase from 12% to 13% (B13), was defended by several agents present at the webinar.

Role for Legislation

Another webinar participant Congressman Fernando Coelho, who actively participated in the approval of the RenovaBio during the time he was Minister of Mines and Energy, demonstrated the need to concentrate efforts in Congress and take advantage of events related to oil prices as an opportunity for the biofuels industry to enter the market.

The legislator sees this scenario as a challenging opportunity because there is pressure on Brazil in relation to what was assumed in the past in the fulfillment of the goals related to the environment. Brazil received a very negative reading abroad on various aspects regarding environmental protection, despite that this situation can be an opportunity for bioenergy and biotechnology.

He emphasized the uniqueness, as well as the difficulties, of the opportunity. He also commented that in June, this debate in Congress will be dominated by other discussions, such as the processing of provisional measures, the extension of emergency aid program and the discussion on the date of the 2020 elections. Coelho predicts that discussions on biofuels may return to Congressional agendas around the second half of July.

Role of Public Opinion

The Former Minister also commented on the need to raise public awareness of the use of biofuels, as public opinion plays a role in the discussion, as the lack of public awareness results in less assistance provided by the government, especially in a moment of crisis.

Biofuture Platform and Synergy among Forms of Bioenergy

At the end of the meeting, the diplomat and representative of the Ministry of Foreign Affairs, Renato Godinho commented on the Biofuture meeting that took place on June 3. Launched in 2016, the Biofuture Platform has the participation of twenty countries and is led by Brazil. The diplomat commented on the synergy among forms of bioenergy, and highlights that, without them, the world is not able to achieve the objectives of the Paris Agreement and maintain the planet’s temperature at the necessary levels.

Godinho pointed out that Brazil is able to lead and profit from it, at the same time that it offers an essential service to the world, suggesting that the 5 principles outlined at the meeting serve as the basis for a unified agenda for biocoalization in Brazil.

The proposed core Biofuture principles for post-COVID bioeconomy recovery and acceleration are:

1. Do not backtrack: Ensure continuity of bioenergy, biofuels, and bio-based material targets and existing policy mechanisms that have proved successful.
2. Short-term liquidity support for producers: Address short-term economic challenges for bioenergy industries caused by Covid-19.
3. Reassess fossil fuel subsidies and taxation regimes: Take advantage of a low oil price environment to reassess fossil fuel subsidies and taxation regimes for a fairer playing field.
4. Build Back Better with Bio: Integrate the bioeconomy sector as part of broader recovery programs, eg. by requiring bioeconomy investments/targets as part of aid and recovery packages for specific sectors such as transport.
5. Reward sustainability: Integrate sustainability rewarding mechanisms into policy frameworks, promoting positive externalities in the production and use of bio-based fuels, chemicals and materials.

At the end of the webinar, Aurélio Amaral, director of the National Agency of Petroleum, Natural Gas and Biofuels, and the one honored by Ubrabio for his work in favor of biofuels, pointed out the necessity of organizing a charter of principles. It should contain plans for integrating the actions between academia and bioeconomy; funding; and above all, a plan to encourage job creation, to boost income and to generate wealth for the country.

The Biocoalition comes at an extremely crucial period, during which biofuels are not receiving adequate support, despite Brazil’s great potential for being in the vanguard of the world’s bioeconomy.

To access the full webinar for further information: https://www.youtube.com/watch?v=WgicRXxgC-c&t=9509s

*Students at Federal University of Goias. Junior Scholars at the Brazilian National Institute of Science and Technology for Studies on the United States (INCT-INEU)

BNDES launches credit program to aid Brazil’s ethanol producers (Ethanol Producer Magazine)