Brazil's aviation industry is keeping an eye on sustainable aviation fuel (SAF) regulations as the domestic market awaits the kickoff of local production to comply with the planned blend mandate and with potential for exports.
The fuels of the future law envisages raising biofuel mix standards to lower greenhouse gas (GHG) emissions in domestic flights over a 10-year period starting in 2027, as Brazil has committed to applying a 10pc SAF mandate by 2037.
The country's efforts to implement a SAF mandate runs in tandem with the guidelines from UN's International Civil Aviation Organization (ICAO) Carbon Offsetting and Reduction Scheme for International Aviation (Corsia) program, which oversees GHG reduction in international flights. The program set up two phases until reduction targets are fully implemented, so airlines and producers adapt to changes efficiently. Airlines can voluntarily adhere between 2024-2026, followed by global compulsory targets from 2027-2035, prompting SAF usage or carbon credits compensation. The mandatory phase embraces all international flights, including those from and to non-voluntary countries, except for so-called underdeveloped countries and those with a low share of global air traffic flows.
Brazil's SAF is a newborn industry that holds potential for feedstock supply, mostly for its traditional productionpathways using soybean oil, corn and sugarcane ethanol, as well as widespread agricultural lands engaged in biomass production without practicing land-use change. Its variability also allows new projects to reuse degraded lands and existing agricultural assets to comply with International Civil Aviation Organization (ICAO) sustainability criteria related to land-use and soil health enhancement.
SAF input in Brazil faces economic hurdles as high market volatilityweighs on long-term investments, says A&M Infra's management consultant Filipe Bonaldo. But he also says that the political agenda will not hinder the energy transition as has happened in the US under President Donald Trump, since Brazil's economy is heavily based on agriculture and its regulatory processes spur optimism.
As an agricultural powerhouse, Brazil offers low-cost production and multiplesources to provide demand, bothinternally and offshore. Brazil is the third largest global exporter in agriculture and livestock markets, leading soy, orange juice and beef markets globally, according to agriculture and livestock confederation CAN.
Debut in Rio
Brazilian fuel distributor Vibra is the first to offer SAF in Brazil, before the blend mandate comes into effect. The company imported 550,000l (16,000bl)of SAF produced with used-cooking oil (UCO) from the port of Antwerp, in Belgium, in January.
The biofuel is available for customers at Vibra's facility at the Rio de Janeiro international airport after a 10-month logistics plan was concluded. International Sustainability & Carbon Certification (ISCC) has secured all processes of the plan, from the supply chain of the product to distribution.
Vibra operates in more than 90 airports in Braziland accounts for 60pc of national aviation market share through its sector subsidiary BR Aviation, said executive vice-president of operations Marcelo Bragança.
Why it took so long?
The sector has long had doubts over the technical feasibility of admitting the use of biofuels in aviation, especially from a security point of view, said Anac's head of the environment and energy transition Marcela Anselmi.
The agency, along with oil and biofuels regulator ANP, follow international regulations for SAF as it requires a physical and chemical resemblance to current fossil aviation fuels to ensure flight operations security.
It is still not possible to use 100pc of SAF in aircraft motors, said Anselmi. There is a 50pc mix limit that inhibits worldwide adherence as there are technical restrictions yet to overcome.
Recent engagement in the energy transition agendais promotingbiomass supply for aviation, as well as road and marine modalities, requiring new production pathways. For example, ATJ uses ethanol to convert it into SAF, which can be expensive to install and implies high capital expenditure.
In a global context, Brazil stands in the vanguard of the SAF agenda as Europe and the US have only deployed legislation related to output and consumption over the past two years, Anselmi pointed out.
Meanwhile, South America's planned SAF production capacity may reach 1.1mn l/yr in 2030, according to EPE.
