Generic Hero BannerGeneric Hero Banner
Latest market news

Brasil Biofuels expands Amazon power generation

  • Market: Biofuels, Electricity, Oil products
  • 21/07/20

Biodiesel and power generation company Brasil Biofuels (BBF) was authorized to begin commercial operations at its 18th biodiesel-fired thermoelectric plant, further reducing the carbon footprint of power generation in the Amazon basin.

The company has been a pioneer in integrating biodiesel production and power generation in a region of the country that is highly dependent on diesel transported in from a long distance.

"It took over a decade to overcome the challenges of investing in the Amazon, but these projects prove that sustainable development in the Amazon is possible," BBF chief executive Milton Steagall tells Argus.

The company is one of only a handful of Brazilian biodiesel producers that uses palm oil as feedstock.

The palm oil used in its plants is produced on company-owned plantations, all of which are located in areas of the Amazon region that are classified as degraded, BBF says.

Because of a 2010 law, palm cannot be planted on areas that were deforested after 2007. Furthermore, because of the 2008 forestry code, properties in the Amazon biome are required to hold 80pc of their total area in reserve.

BBF was one of the winners of last year's generation auction for power purchase agreements in Roraima state, which used to rely on neighboring Venezuela for supply. The company will invest R635mn ($122mn) in two power stations with combined capacity of 74MW. The larger plant, with 56MW of capacity, will be located in the capital of Roraima and will have both biodiesel and solar generation capacity.

The second power plant will be in Sao Joao da Baliza, where the company's biodiesel and 72 t/d palm oil plant are located.

The two power plants will begin operating in early 2021.

According to Steagall, the plants will reduce conventional diesel consumption in the region by 130,000 l/y, once fully operational.

"Not only does this reduce pollution, but it also reduces generation costs," Steagall added.

The company plans to participate in future auctions to supply isolated systems. Steagall added that the government is expected to hold auctions for these regions in 2021.

In addition to its biodiesel business, the company announced a joint venture with US ethanol plant producers ICM to build a corn ethanol plant in Roraima. With initial investment of R220mn, the company plans to produce 400mn l/yr of ethanol.

Part of the corn ethanol plant's production will be used as catalyst for biodiesel production, but the bulk of the ethanol supply will be sold in Roraima.

"Roraima is the state with the highest gasoline prices, which means our ethanol will be competing with the most expensive gasoline in Brazil," Steagall said, adding that the company plans to take advantage of new legislation that will allow it to sell ethanol directly to the service stations.


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News
02/04/25

Brazil SAF industry set to take off in 2027

Brazil SAF industry set to take off in 2027

Sao Paulo, 2 April (Argus) — 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 production pathways 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 volatility weighs 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 its regulatory processes spur optimism. As an agricultural powerhouse, Brazil offers low-cost production and multiple sources to provide demand, both internally 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 the Netherlands, 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 Brazil and 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 agenda is promoting biomass 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. By João Curi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more
News

Mexico manufacturing extends contraction in March


02/04/25
News
02/04/25

Mexico manufacturing extends contraction in March

Mexico City, 2 April (Argus) — Mexico's manufacturing sector contracted for a 12th consecutive month in March, with production and employment both deepening their slides, according to a survey released today. The manufacturing purchasing managers' index (PMI) ticked up to 47.2 in March from 47.1 in February, but remained below the 50-point threshold between contraction and expansion, according to the latest PMI survey from the finance executive association IMEF. Manufacturing, which accounts for about a fifth of Mexico's economy, is led by the auto sector, contributing about 18pc of manufacturing GDP. Within the manufacturing PMI, the new orders index rose by 1.3 points to 45.3, still deep in contraction. Meanwhile, production fell by 0.6 points to 44.6. The employment index also declined 0.6 points to 46.4 in March, now in contraction for 14 consecutive months. Meanwhile, the non-manufacturing PMI — covering services and commerce — declined 0.8 points to 48.8 in March from 49.6 in February, holding in contraction for a fourth consecutive month. Within the non-manufacturing PMI, new orders fell 1.5 points to 48.2 and production declined 1 point to 47.5 with employment down a point as well in March to 47.5, as all three pushed deeper into contraction. In contrast, the inventories component rose 3.5 points to 50.6 into expansion territory in March. But this may be the result of company strategies to stockpile inventories ahead of US tariffs and the reciprocal measures Mexico is set to announce on 3 April, IMEF technical advisory board member Sergio Luna said. PMI data show that the economic stagnation that began in late 2024 persisted through March, with results from January and February pointing to a sharp slowdown in the first quarter, IMEF said. This follows annualized GDP growth of 0.5pc in the fourth quarter of 2024, slowing from 1.7pc in the third quarter, according to national statistics agency data. Luna said concerns over US tariffs continue to drive much of the uncertainty reflected in the PMI data. Internal factors — such as reduced government spending to contain the fiscal deficit and investor unease over judicial reforms passed last year — are also weighing on activity, Luna added. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Australia’s gas leaders hit out at market intervention


02/04/25
News
02/04/25

Australia’s gas leaders hit out at market intervention

Sydney, 2 April (Argus) — Senior figures in Australia's upstream gas sector have hit out at plans for intervention in the heavily regulated industry, as debate continues on how to best address domestic supply shortfalls later this decade. The federal Coalition in March announced National Gas Plan including a 50-100 PJ/yr (1.34bn-2.68bn m³/yr) domestic reservation system aimed at forcing the three LNG exporters based in Queensland's Gladstone to direct more supply to the eastern states' market. But oversupplying the market to drive down prices would destroy the viability of smaller gas projects, Australian independent Beach Energy's chief executive Brett Woods said at a conference in Sydney on 1 April. The domestic-focused firm, which will export some LNG volumes via its Waitsia project in 2025, warns that such a move by the Peter Dutton-led opposition would reduce export incomes while harming Australia's international reputation. The volumes impacted by the policy could reach around 900,000-1.8mn t/yr. Expropriation of developed reserves is equivalent to breaking contracts with LNG buyers and with the foreign and local investors that the country needs for ongoing economic security, Woods said on 1 April. Domestic gas reservation systems put in place by the state governments of Western Australia (WA) and Queensland, designed to keep local markets well supplied, were "clearly supportable", Woods said, but only future supply should be subject to the regulations. LNG terminals, which represent about 70pc of eastern Australia's total gas consumption and shipped 24mn t in 2024 , should not be blamed for the failure of governments to expedite new supply and plan for Australia's gas future, head of Shell Australia Cecile Wake said in response to the Coalition's proposal. Shell's QGC business supplied 15pc of its volumes to the local grid, with the remainder shipped from its 8.5mn t/yr Queensland Curtis LNG project, Wake added. Canberra has moved to promote gas use as a transition fuel to firm renewable energy in line with its 2030 emissions reduction targets, but progress has been slow as reforming laws appear to be hampering development . The state governments, particularly in gas-poor Victoria and New South Wales (NSW), must recognise the need for locally-produced supply and streamline the approvals processes, especially environmental permits, executives said. But despite pleas for an end to years of interventionist policy — including the governing Labor party's measures to cap the price of domestic gas at A$12/GJ , Australia's fractured political environment and rising cost of living has sparked largely populist responses from its leaders. A so-called "hung" parliament is likely to result from the 3 May poll , with a variety of mainly left-leaning independents representing an anti-fossil fuel agenda expected to control the balance of power in Australia's parliament. LNG debate sharpens Debate on the causes of southern Australia's gas deficit has persisted, and the ironic outcome of underinvestment in gas supply could be LNG re-imports from Gladstone to NSW, Victoria and South Australia, making fracked coal-bed methane — liquefied in Queensland and regasified — a likely higher-emissions alternative to pipeline supply. Several developers are readying for this possibility , which is considered inevitable without action to increase supply in Victoria or NSW, increase winter storages or raise north-south pipeline capacity. Australian pipeline operator APA appears to have the most to lose out of the active firms in the gas sector. APA chief executive Adam Watson this week criticised plans for imports, because relying on LNG will set the price of domestic gas at a detrimental level, raise emissions and decrease reliability of supply, Watson said. The firm is planning to increase its eastern pipeline capacity by 25pc to bring new supplies from the Bass, Surat and Beetaloo basins to market. But investment certainty is needed or Australia will risk needing to subsidise coal-fired power for longer if sufficient gas is unavailable to back up wind and solar generators with peaking power, Watson said. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

LNG stocks at Japan’s power utilities rise


02/04/25
News
02/04/25

LNG stocks at Japan’s power utilities rise

Osaka, 2 April (Argus) — LNG inventories at Japan's main power utilities increased during the week to 30 March, as warmer weather reduced electricity demand for heating purposes and limited gas-fired generation. The utilities held 2.24mn t of LNG on 30 March, up by 22pc from a week earlier, according to a weekly survey by the trade and industry ministry Meti. This was higher by 51pc compared with 1.48mn t at the end of March 2024 and up by 10pc against 2.03mn t — the average end-March stocks over 2020-24. A seasonal rise in temperatures weighed on power demand, which fell by 12pc on the week to 87GW across 24-30 March, according to the Organisation for Cross-regional Co-ordination of Transmission Operators (Occto). This resulted in a 24pc fall in gas-fired output to an average of 24GW during the period, the Occto data showed. Coal- and oil-fed generation also fell by 14pc to 23GW and by 21pc to 409MW respectively in the same period. The lower demand has created extra supplies to be sold on the wholesale market. This has weighed on day-ahead prices on the Japan Electric Power Exchange (Jepx) and worsened generation economics for the country's thermal power plants. Margins at a 58pc-efficient gas-fired unit running on oil-priced LNG supplies fell into negative territory, with the spark spread averaging at a loss of -¥2.28/kWh ($15.22/MWh) across 24-30 March, compared with the previous week's profit of ¥0.84/kWh. The 58pc spark spread using spot LNG widened the deficit, with the margin averaging at a loss of -¥3.79/kWh against the previous week's -¥0.80/kWh, based on the ANEA — the Argus assessment for spot LNG deliveries to northeast Asia. Coal remained competitive in Japan's merit order. But the dark spread of a 40pc-efficient coal-fired unit also fell by 64pc on the week to an average of ¥1.63/kWh over 24-30 March, based on Argus' spot coal and freight assessments. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

India's IOC cuts jet fuel prices by 6pc for April


02/04/25
News
02/04/25

India's IOC cuts jet fuel prices by 6pc for April

Mumbai, 2 April (Argus) — Indian state-controlled refiner IOC has reduced jet fuel prices by 6pc effective from 1 April. IOC cut prices in Mumbai, capital New Delhi, Kolkata and Chennai by 6pc from a month earlier. Prices vary from state to state depending on local taxes. Asian jet fuel margins — or Singapore jet fuel swaps against Dubai crude values — averaged $13.04/bl in March, down from $15.23/bl in February. India's jet fuel consumption stood at 203,100 b/d in March, up by 5pc on the year, provisional data from the oil ministry show. By Roshni Devi Jet fuel prices in India Rupees/kl City Apr-25 Mar-25 m-o-m % Delhi 89,441.18 95,311.72 -6 Kolkata 91,921.00 97,588.66 -6 Mumbai 83,575.42 89,070.03 -6 Chennai 92,503.80 98,567.90 -6 Source: IOC Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more