Brasil BioFuels to build Brazil's first SAF facility in Manaus

BrasilBiofuels plans to build Brazil's first sustainability aviation fuel facility in Manaus using technology developed by Denmark's Topsoe Haldor, a first mover in renewable fuel technology, Topsoe Haldor said Oct. 19.

The BrasilBioFuels facility will also produce hydrotreated vegetable oil, Topsoe Haldor said in a statement.

"Topsoe's hydroprocessing technology will allow the biorefinery to produce the low-carbon fuels while at the same time recycling gases and liquids from the process for production of hydrogen that will be integrated in the biorefinery's operations," Topsoe Haldor said.

The company's process captures waste propane and carbon from the refining process and converts it into hydrogen to be used as part of the facility's power supply.

The plant's start-up date is 2025 and the plant is expected to produce 500,000 mt/yr of renewable fuels and renewable fuel feedstock at full production rates.

A recent presentation from BrasilBioFuels shows that they will use palm oil which they will grow in Brazil as feedstock for the biorefinery to meet growing demand for renewable fuels including SAF.

SAF production has accelerated as policy incentives make it more competitive with petroleum-based jet kero by airlines seeking to cut emissions to meet internal goals. Airline industry group, IATA, is looking for global SAF production to reach 30 billion liters by the end of the decade.

Brazil's biodiesel prices gain strength

Prices of Brazilian biodiesel have been rising recently, with Brazilian spot biodiesel DAP Paulínia was assessed at a weekly average of Real 6,080/cu m for the week ended Oct. 14, up from the Real 5,596/cu m for the week ended Oct. 7, but above the Real 5,617/cu m so far in October, Platts data from S&P Global Commodity Insights showed.

According to market participants, the earlier biodiesel spot price decline has been partly explained by lower diesel demand than initially expected for September and October months and an underused industrial capacity to produce B100 in the country.

Brazilian biodiesel producers initially expected biodiesel blending at 14% since March, but the mandate was lowered to 10% for 2022. The sector still has no clarity about the blending mandate for 2023, according to S&P Global.

Latin America renewable fuel growth continues

BrasilBiofuels' plant is one of three major SAF and renewable fuels plant planned for Latin America.

Construction for Phase 1 of Panama's SGP BioEnergy Biorefineria Ciudad Dorada, located in Colon and Balboa, Panama, is expected to start in 2023, with the first phase of production of renewable fuels online in 2025. Once fully operational, the plant will be able to produce 180,000 b/d or 2.6 billion gal/yr of biofuel.

Earlier this month, Biorefineria Ciudad Dorada said it was adding green hydrogen production capability to the plant, which will allow it to make 405,000 metric tons/yr to decarbonize further the plant allowing to operate with net-zero emissions. Topsoe Haldor will be incorporating its green hydrogen technology into the plant's structure.

The ECB-Omega Green project in Villeta, Paraguay, is forecast to come online in 2024, producing 20,000 b/d of SAF, renewable diesel and renewal naphtha from soybean, used cooking oil and animal fats. Shell and BP have already signed offtake agreements for the fuels.