On September 26, 2024, at the Estadão Summit ESG 2024 in São Paulo, Brazil, industry leaders highlighted significant advancements in biodiesel and green hydrogen as part of efforts to reduce carbon emissions. Currently, biodiesel accounts for 14% of Brazil's diesel mix, with plans to increase this to 25% by 2035. This shift could prevent over 320 billion tons of CO2 emissions over the next decade, according to André Lavor, CEO of Binatural.
The proposed 'Future Fuels' legislation, set to be sanctioned in October, aims to decarbonize Brazil's transportation sector, which is predominantly truck-based. It promotes the use of biocompatible fuels such as Hydrotreated Vegetable Oil (HVO) and Sustainable Aviation Fuel (SAF) while enhancing the ethanol and biodiesel sectors.
HVO is produced from vegetable oils or animal fats through hydrogenation, while SAF is derived from renewable materials. Biodiesel production, which can reduce emissions by up to 90%, utilizes waste oils, including used cooking oil.
Fernanda Delgado, Executive Director of the Brazilian Association of Green Hydrogen Industry (Abihv), emphasized that green hydrogen could significantly lower carbon emissions across various industries, including steel, chemicals, and agriculture, by replacing fossil fuels in production processes. Brazil has signed Memoranda of Understanding for new projects, particularly in the Northeast, with an estimated impact of R$ 7 trillion on the country's GDP by 2050.
Green hydrogen production, which uses renewable energy sources like wind, hydro, and solar to electrolyze water, positions Brazil favorably due to its predominantly renewable energy matrix and conducive geopolitical conditions.
Thiago Hipolito, Senior Director of Innovation at 99, noted the company's commitment to electrification in the app market, emphasizing social, environmental, and governance impacts. In 2022, 99 founded the Alliance for Sustainable Mobility, collaborating with 19 companies to promote electric vehicle production and usage in Brazil.
However, David Zylbersztajn from PUC Rio highlighted a critical issue: over 20% of Brazil's population still relies on wood for cooking, contributing to respiratory diseases globally, which claim 4 million lives annually.
These initiatives reflect Brazil's broader commitment to sustainable energy solutions and highlight the urgent need for global collaboration to address environmental challenges.