Brazil launches 1 billion dollar SAF development program

On August 22, the Brazilian federal government announced the launch of a call for business plans focused on developing Sustainable Aviation and Navigation Fuels. The call, with an investment of BRL 6 billion (1 billion dollars), aims to promote the creation of biorefineries in Brazil, with resources provided by the National Bank for Economic and Social Development (BNDES) and the Funding Authority for Studies and Projects (FINEP), each contributing BRL 3 billion.

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During the announcement, which included the presence of Ministers Luciana Santos (Science, Technology, and Innovation), Geraldo Alckmin (Development, Industry, Commerce, and Services), and Alexandre Silveira (Mines and Energy), the importance of this initiative for the country’s energy transition was emphasized. Luciana Santos pointed out that the initiative aligns with the New Industry of Brazil, integrating new technological bases with sustainability.

The transport sector accounts for about 25% of global CO₂ emissions, according to the Intergovernmental Panel on Climate Change (IPCC) of the UN, with maritime transport contributing 3% and aviation 2% of these emissions. The call aims to foster projects that address the development, production, and commercialization of industrial technologies for the creation of sustainable fuel refineries for these sectors.

Vice President and MDIC Minister Geraldo Alckmin emphasized Brazil’s importance in the global biofuels scenario. “This public call reinforces our commitment to the green economy and positions Brazil as a leader in the global energy transition,” said Alckmin.

According to our media partner Aeroin, the call is open to Brazilian companies involved in fuel production or in research, technological development, and innovation activities, as well as companies that commercialize the final products of these technologies. Each proposal must present a business plan with a credit requirement of over BRL 20 million.

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Minister Alexandre Silveira said Brazil has a unique opportunity to lead the new economy based on sustainability. “The transition that began with sustainability is now a new economy, and Brazil cannot miss this opportunity,” he stated.

The call provides financial support for activities such as research, technological development, engineering projects, pilot plants, working capital, machinery and equipment acquisition, and other related expenses. The submission deadline is October 31.

In addition to the ministers, the event was attended by Celso Pansera, president of FINEP, and Aloizio Mercadante, president of BNDES, among other government representatives. Pansera highlighted Brazil’s role in the energy transition, stating that with the government’s industrial policy, the country could become a major player in the production of sustainable fuels.

The project selection process will occur in three stages: presentation of plans, selection of the best projects, and structuring of the Joint Support Plan (PSC) for each business.