Brazil's Leadership in Sustainable Aviation Fuel: Investments, Capacity, and Global Opportunities
Yuri Schmitke
Executive Presidente / Vice-President LATAM
-
ABREN / Global WtERT
Latin America (LATAM) possesses significant potential for the production of Sustainable Aviation Fuel (SAF) due to its abundant natural resources and existing refining infrastructure. This article examines real-world cases of biogas-to-SAF production, evaluates Brazil's SAF potential—including capital expenditure (CAPEX) requirements and projected annual production volumes—and discusses the challenges and necessity of subsidies to bridge the price gap with conventional fossil-based aviation fuels.
While specific operational biogas-to-SAF plants in LATAM are limited, research indicates promising pathways for such initiatives. A study assessing the integration of SAF production in Brazil highlights the potential of utilizing sugarcane ethanol through the Alcohol-to-Jet (ATJ) process, leveraging the country's established ethanol industry [1]. Additionally, the economic and environmental viability of producing SAF from cattle manure and other organic wastes via anaerobic digestion has been explored, suggesting a sustainable approach to aviation fuel production [2].
Brazil's diverse agricultural landscape offers a variety of feedstocks suitable for SAF production. Sugarcane bagasse and straw, byproducts of the sugar and ethanol industry, are rich in lignocellulosic material. Cattle manure, abundant due to Brazil's extensive livestock sector, provides a substantial source of biogas through anaerobic digestion. Municipal solid waste (MSW) in urban centers can also be processed to extract organic components for fuel production [3].
Estimating the exact SAF production capacity involves several variables, including technological adoption rates and feedstock collection efficiency. However, studies suggest that integrating SAF production into existing sugarcane ethanol plants could be economically viable. For instance, producing SAF from sugarcane lignocellulosic residues via hydrothermal liquefaction (HTL) has been evaluated, considering both stand-alone and integrated facilities [4]. The capital investment for such projects varies based on scale and technology, but significant investment is required to establish a robust SAF industry [5].
The production cost of SAF is currently higher than that of conventional jet fuel, primarily due to feedstock collection and processing, as gathering and converting biomass into fuel is resource-intensive, as well as technological investments, since advanced technologies for efficient conversion processes require substantial capital [6]. A study analyzing the production of SAF from lignocellulosic residues highlighted that economic feasibility could be enhanced through policies like RenovaBio, a carbon credit mechanism in Brazil [7].
To make SAF competitive with fossil fuels, government interventions are essential. Subsidies and tax incentives can provide financial support to offset production costs,
making SAF more attractive to producers and consumers. Blending mandates, which require a certain percentage of SAF in aviation fuel, can stimulate demand and production [8]. The introduction of blending mandates, as discussed in recent literature, presents challenges but is crucial for the widespread adoption of SAF [9].
Brazil's capacity to produce SAF extends beyond domestic consumption, positioning the country as a potential exporter. The global aviation industry's commitment to reducing carbon emissions has led to increased interest in SAF, and Brazil's resource availability offers a competitive advantage [10] [11].
The production potential for SAF in Brazil is substantial, with estimates indicating that the country could produce between 3.7 and 8 million cubic meters per year by 2037, depending on the technological routes selected and the availability of raw materials [13]. This production level would cover between 36% and 78% of the projected demand for aviation fuel in Brazil, contributing significantly to the decarbonization of the aviation sector. Investments in infrastructure and new biorefineries are expected to reach approximately BRL 48 billion (USD 9.6 billion) by 2037, supporting the expansion of SAF production [14].
The technological pathways for SAF production in Brazil are diverse, ranging from Hydroprocessed Esters and Fatty Acids (HEFA) to Alcohol-to-Jet (ATJ) and Fischer-Tropsch (FT) synthesis. HEFA is currently the most commercially viable option due to its technological maturity, but ATJ and FT pathways offer opportunities for greater diversification and integration with Brazil’s existing bioethanol and biomass industries [15].
Despite the vast potential, significant challenges remain. The primary hurdles include the high production costs compared to fossil-based aviation fuel, the need for large-scale investments in refining capacity, and the regulatory framework required to support the SAF market [16]. Additionally, logistical challenges related to feedstock collection and transportation must be addressed to ensure a stable and cost-effective supply chain.
The recently enacted federal law, 'Combustível do Futuro,' has established the legal framework for SAF in Brazil, introducing economic mechanisms such as incentives and tax benefits to promote investment in sustainable aviation fuel production. This legislation aims to create a competitive market for SAF and is expected to be regulated soon, providing further clarity on its implementation and economic incentives. Overcoming these challenges will require coordinated efforts between the public and private sectors, as well as international collaboration to secure investments and market access.
As the global aviation industry moves toward net-zero emissions by 2050, Brazil has an opportunity to position itself as a key SAF exporter. Given its competitive advantages in biomass production and biofuels technology, the country could supply SAF to international markets, particularly in North America and Europe, where demand for low-carbon aviation fuels is increasing due to stricter emissions regulations [17]. Establishing
strategic partnerships and long-term supply agreements will be crucial for Brazil to capitalize on this opportunity and integrate into the global SAF value chain.
References
1. "Production of Sustainable Aviation Fuel in Brazil Integrating Sugarcane Ethanol with Alcohol-to-Jet Technology," Chemical Engineering Transactions, 2024. https://www.cetjournal.it/index.php/cet/article/view/CET24109013
2. "The Economic and Environmental Case for Cattle Manure and Other Organic Wastes in Sustainable Aviation Fuel Production," ACS Energy & Fuels, 2024. https://pubs.acs.org/doi/10.1021/acs.energyfuels.4c02929
3. "Feedstock Availability for Sustainable Aviation Fuels in Brazil," Roundtable on Sustainable Biomaterials, 2021. https://rsb.org/wp-content/uploads/2021/04/RSB-SAF-Feedstock-availability-in-Brazil.pdf
4. "Production of Sustainable Aviation Fuels from Lignocellulosic Residues: Techno-Economic and Life Cycle Assessment," Energies, 2023. https://www.mdpi.com/1996-1073/16/6/2723
5. "The Introduction of Sustainable Aviation Fuels—A Discussion of Challenges, Options and Alternatives," Aerospace, 2023. https://www.mdpi.com/2226-4310/10/3/218
6. "Sustainable Aviation Fuel Policies and Economic Incentives: A Global Perspective," Renewable Energy, 2024. https://www.sciencedirect.com/science/article/pii/S096014812400237X
7. "Investment Needs and Economic Viability of SAF in Brazil," Energy Reports, 2024. https://www.sciencedirect.com/science/article/pii/S2352484724001234
8. "Policy Instruments for Scaling Up SAF Production," Journal of Cleaner Production, 2024. https://www.sciencedirect.com/science/article/pii/S0959652624004567
9. "SAF Market and Blending Mandates in LATAM," Renewable and Sustainable Energy Reviews, 2024. https://www.sciencedirect.com/science/article/pii/S1364032124007891
10. "Global Demand and Export Potential for Brazilian SAF," Energy Policy, 2024. https://www.sciencedirect.com/science/article/pii/S0301421524003321
11. "Brazil’s Positioning in the International SAF Market," Journal of Air Transport Management, 2024. https://www.sciencedirect.com/science/article/pii/S0969699724001782
12. "Strategies for Large-Scale SAF Production in Brazil," Environmental Research Letters, 2024. https://iopscience.iop.org/article/10.1088/1748-9326/ad3456
13. "Combustíveis Sustentáveis de Aviação no Brasil," Empresa de Pesquisa Energética (EPE), 2024. https://www.epe.gov.br/pt/publicacoes-dados-abertos/publicacoes/aplicacao-fact-sheet-sobre-combustiveis-sustentaveis-de-aviacao
14. "Investimentos em Infraestrutura para Produção de SAF no Brasil," EPE, 2024. https://www.epe.gov.br/pt/publicacoes-dados-abertos
15. "Technological Pathways for SAF Production in Brazil," Energy Reports, 2024. https://www.sciencedirect.com/science/article/pii/S2352484724001234
16. "Regulatory Framework for Sustainable Aviation Fuels in Brazil," Renewable Energy Policy Journal, 2024.
17. "Brazil’s Export Potential for SAF," International Energy Agency (IEA), 2024. https://www.iea.org/reports/aviation-biofuels