LATAM's Natural Advantage: Leveraging regonal feedstocks and refining capacity
MSc Agustín Torroba
International Specialist in Biofuels / Technical and Executive Secretary
-
Inter-American Institute for Cooperation on Agriculture (IICA) / Pan-American Coalition on Liquid Biofuels (CPBIO)
Introduction
Sustainable Aviation Fuels (SAF) undoubtedly represents the forefront of biofuel innovation and are a crucial tool for decarbonizing the aviation sector.
The challenge of decarbonizing the aviation sector is immense: according to the latest resolution by the International Air Transport Association (IATA), 449 million cubic meters of SAF will be needed by 2050 to meet the projected targets. To put this into perspective, the world currently produces 180 million cubic meters of biofuels, almost all of which are used for ground transportation (biodiesel and bioethanol).
Latin America is uniquely positioned to lead SAF development due to its abundance of natural resources and extensive experience in producing biofuels for ground transportation, such as bioethanol and biodiesel. The region’s agricultural sector supplies the key feedstocks for SAF, spanning three main categories: oils and fats, sugars and starches, and lignocellulosic biomass. These resources are not only abundant but can also be processed sustainably, giving the region a competitive advantage over other parts of the world.
Moreover, Latin American countries have extensive experience with sustainability certifications for biofuels, developed through policies aimed at reducing greenhouse gas (GHG) emissions in ground transportation. This expertise places the region in a strong position to extend its capabilities to the aviation sector. Sustainable agricultural practices, efficient production logistics, and technological innovations such as CO2 capture during ethanol fermentation contribute to making Latin America's biofuels among the lowest-carbon fuels globally. Various certification schemes already validate this, allowing the region to supply low-carbon programs such as those in California, the European Union, and Brazil’s RenovaBio program.
The certified value chain for vegetable oils, currently used for biodiesel production, will be crucial for SAF production via the Hydroprocessed Esters and Fatty Acids (HEFA) pathway. Similarly, the well-established and certified sugarcane and corn supply chains—characterized by abundant, cost-effective, and sustainable production—will serve as key ethanol suppliers for the Alcohol-to-Jet (ATJ) route. A major advantage for the region is that both its soybean crushing industry (the world’s largest) and its sugarcane and corn ethanol plants are already operational and highly efficient.
Latin America as a leading supplier of abundant, cost-effective, and sustainable feedstocks, solidifying its potential to become a global SAF production hub. The region boasts the world’s largest sugarcane producer (Brazil), the largest soybean oil exporter (Argentina), a significant palm oil producer (Colombia), and the second and third-largest corn exporters (Brazil and Argentina). In other words, it has the necessary fatty acids for HEFA production and ample sugars and starches for expanding the ATJ pathway, among others. Additionally, Latin America has the world’s greenest electricity matrix and abundant renewable energy resources, making it well-suited to produce low-carbon hydrogen for SAF with minimal emissions.
However, to solidify its role as a global SAF production hub, the region must overcome three critical challenges:
Active participation in international forums where sustainability criteria are defined and revised. The inclusion of default values for specific terms, such as Indirect Land Use Change (ILUC), with disproportionately unfavorable factors for the region, necessitates a strong regional voice in these discussions.
The formulation of local and regional SAF policies.
Engagement with the European Union. The REFUEL EU program is particularly harmful to Latin America, as it is not neutral in terms of feedstocks and technologies, explicitly prohibiting the use of the region’s most competitive raw materials. Given the industrial scale required for SAF production, Latin American countries must consider exporting part of their output, and such regulations pose a significant barrier.
Beyond contributing to the decarbonization of the aviation sector, SAF development promises significant economic and social benefits for Latin America. Establishing a robust SAF industry will create sustainable jobs and strengthen agricultural value chains, driving local economic growth. This is particularly relevant in rural areas, where agricultural economies stand to benefit from the increased demand for biofuel feedstocks.
For Latin America to fully capitalize on its SAF potential, coherent and harmonized public policies must be developed to drive infrastructure investment, align sustainability standards, and facilitate access to financing. International cooperation will also be essential, enabling the sharing of technology, expertise, and resources among countries in the region.