BBF and Vibra announce 1st green diesel biorefinery in Brazil for 2025

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biorefinery in Brazil
Vibra Energia — Foto: Divulgação

Biorefinery in Brazil

Biorefinery in Brazil – Vibra Energia (former BR Distribuidora) and Brasil BioFuels (BBF) announced this Wednesday (24) the construction of the first biorefinery in Brazil for the production of HVO, known as green diesel, made with 100% vegetable oil, with production expected to start in 2025.

The investment for the construction of the factory, of R$ 1.8 billion, will be made by BBF, while Vibra guaranteed the acquisition of 100% of the production, informed both companies.

Biorefinery will have a capacity of 500 million liters

The biorefinery, with a capacity to produce 500 million liters of green diesel per year, will be built in the Manaus Free Trade Zone, and the first phase of the project is scheduled to start operating in January 2025.

Both companies stressed in a statement that the location of the factory will be at a “strategic point for distribution throughout the North of the country, and may also direct the product to other regions of the country and even for export”.

HVO is produced through the processing of renewable raw materials such as palm and soy. Unlike biodiesel, green diesel allows mixing with other raw materials in the production process. Vegetable oil or animal fats are the most used.

Palm planting will guarantee raw material

By 2026, more than 120 thousand hectares of palm will be planted in the regions defined in the Palm Agro-ecological Zoning, guaranteeing raw material for the project, the companies pointed out.

“The main advantage of green diesel is its efficiency in solving the challenge of reducing polluting gas emissions, as it reduces up to 90% of greenhouse gas emissions compared to fossil diesel,” said the companies.

“Additionally, it is not necessary any adaptation in diesel engines for consumption and can be used pure or mixed with fossil diesel. It is a product practically free of contaminants, with high stability, which guarantees fewer problems in storage and uses in diesel engines.”

The announcement comes amid initiatives by Vibra, the main distributor of oil products in Brazil, to diversify its portfolio, amid an effort to participate in the country’s energy transition.

“We are going to develop together the renewable diesel market in Brazil and contribute even more to the decarbonization of our energy matrix”, said Vibra CEO Wilson Ferreira Jr. in a note.

BBF also highlighted that the implementation of the refinery follows its agricultural verticalization plan, operating from the planting of palm in degraded areas, through the production of vegetable oil and even the manufacture of biofuel.

“Together we will replace fossil diesel in the Amazon region,” added BBF CEO Milton Steagall.